Universal Basic IncomeUniversal basic income, also called UBI, is a dividend adults citizens receive from the government, regardless of financial status. It is unconditional and seen as benefit not only to individuals but to keeping an economy healthy, as it enables people to buy goods and services. The idea of a universal basic income is popular with many business and tech leaders who consider it an important tool as more jobs are lost to AI and automation.
Using an untapped source of revenue
Funding a universal basic income (UBI) is straightforward when using a payments tax to generate revenue. By raising a payments tax from one tenth of one percent (0.1%) to two tenths of one percent (0.2%), enough revenue is generated to fund a substantial UBI in addition to a slew of other benefits. That equals a tax of just 2 cents on $10 of every transaction.
UBI replaces a failing social security system
A UBI replaces the current welfare and social security systems that cost nearly $2 trillion. Funding a UBI with a payments tax generates $5.5 trillion per year while eliminating the steep overhead costs associated with welfare and social security programs. It also eliminates the steep overhead costs of implement these programs, because social security and welfare are figured on an individual basis, which is time consuming and costly.
Reliable income increases spending
UBI eliminates the stigma of welfare, and helps Americans escape the cyclical poverty trap.
Basic income is a guarantee as AI replaces jobs
Automation threatens middle-to-low income jobs, and basic income guarantees support. A UBI would need to be coupled with an Earned Income Credit (work incentivised welfare) program initially to encourage work while jobs are still available.