---------- Forwarded message ---------- From: russell robles-thome Date: Tue, Nov 12, 2013 at 4:40 PM Subject: [Vo]:OT: Switzerland's Proposal to Pay People for Being Alive
Harry - I'm not sure of the protocol, but I can't be a member of Vortex - I don't have the personal bandwidth - but I scan the archive and I'm interested in you post. Maybe you could post this reply? A universal income is a great idea, as long as it is set low - at well below a comfortable income. If you start from the premise that marginal income tax rate ought to start from zero at zero income, and rise steadily to some maximum, it is easy to conclude that a universal income and progressive tax fills the bill, especially if the universal income is taxed. Draw a chart of net income versus gross income - it's very hard to meet the above constraints without something appearing like a taxable universal income. It is also easy to argue that unemployment is *created* by unemployment benefit: without it, there would naturally be degrees of under-employment. With it, no-one works for less than the benefit. With a universal income, I can cut my neighbour's lawn for $5 and not pay tax, without being made a criminal for not returning my benefit. Another advantage is that with this scheme allows the minimum wage to be slashed: so if, say, the universal income is set at half the minimum wage, minimum wage can be cut by 40%. Those on minimum wage are better off, and there are far, far, more jobs available at the lower rates. In fact, this can even be seen as a way to compete with low-cost countries, and bring back some low-skilled and manual jobs from China, etc. I've thought about this idea on-and-off for decades, and I'm delighted that it has surfaced like this. Russell Robles-Thome, Edinburgh
