£1600 per month basic income

[blup]

Economic theories work for a while until the public cotton on and vote with their feet. Or, as Truss found out the money markets vote with their feet. The idea that an unemployed British worker would be incentivised to work/invest is surely a non starter.

Blup

 

[Lower]

Like anything else, through taxation.

So it’s a classic wealth redistribution tax, just under a different name, with the additional benefits of eliminating the labour pool at the low end of the pay scale and rampant inflation.

 

[denso13]

So it’s a classic wealth redistribution tax, just under a different name, with the additional benefits of eliminating the labour pool at the low end of the pay scale and rampant inflation.

No it's nothing like that at all. Remember it is private research, with no funding yet, limited to 30 people. It will go nowhere.

 

[Vinty]

UBI might be a good idea, but where would the money come from to pay for it.

 

[denso13]

UBI might be a good idea, but where would the money come from to pay for it.

Taxation, where else? The proposed pilot won't be expanded, it's unaffordable.

 

[denso13]

You say that now.

If it is to be universal it is getting on for a trillion pounds every year at £1600 per month. Not a chance...

 

[Odds]

If it is to be universal it is getting on for a trillion pounds every year at £1600 per month. Not a chance...

I don't get the impression it'd act as a Universal Benefit, but as a means tested way of providing income for those in most need, such as the people in the Welsh trial for those leaving care homes, for instance, as a way to get them started on the right road.

 

[denso13]

but as a means tested way of providing income for those in most need

The report says it is not means tested and is not dependant on whether working or not. Who knows.

 

[martygturner]

I always enjoy the discussion of the headline but never the detail...the £1600 replaces every benefit including state pension bar housing benefit uplift ie rent over the rent act and child/disability payments...the cost of the dwp is roughly 1/5 of the total benefit bill, or 12.2 Billion a year, HMRC add another 12.7 billion in costs. The point of this is that both the underlying costs are slashed and the tax code is simplified. Basically you pay 20% on everything over the UB amount upto 100k and UB is reduced until 150k and then you don't get UB but then pay 40% on everything above.
most reliefs are scrapped..it means that top earners pay roughly 42% on everything and upto 150k people pay 31%, under 100k pay 25%, under 50 its 20%....But that means all income is taxed as income...no more stuffing a pension etc

Basically is designed to replace virtually all benefits and tax thresholds..if you just think about the benefit limits - job seekers for example 84.50 a week - but costs £49 a week to administer, if you take any work then JSA stops and you have to make a universal credit claim....

In the UB world, none of that applies..no UC, JSA etc etc. you need extra money then you can take any job no silly tapers nothing just 20% on whatever you earn..