Executive summary: While universal basic income (UBI) is a popular idea to address job automation, a targeted negative income tax (NIT) or tweaks to the existing Earned Income Tax Credit (EITC) would be more practical and effective at providing a safety net.
Key points:
Implementing a $12k/year UBI would be extremely expensive, requiring major tax increases and budget restructuring.
Replacing existing welfare programs with UBI would be regressive, moving money from the disadvantaged to the more advantaged.
For most people, UBI would function as a tax credit rather than additional income.
A negative income tax (NIT) could provide a targeted safety net at a fraction of the cost of UBI.
The US already has a limited NIT in the form of the EITC, which could be expanded to better match UBI goals by increasing benefits for individuals and providing payments to the unemployed.
Cultural resistance to “handouts” and preference for encouraging employment are major obstacles to implementing UBI or NIT in the US.
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Executive summary: While universal basic income (UBI) is a popular idea to address job automation, a targeted negative income tax (NIT) or tweaks to the existing Earned Income Tax Credit (EITC) would be more practical and effective at providing a safety net.
Key points:
Implementing a $12k/year UBI would be extremely expensive, requiring major tax increases and budget restructuring.
Replacing existing welfare programs with UBI would be regressive, moving money from the disadvantaged to the more advantaged.
For most people, UBI would function as a tax credit rather than additional income.
A negative income tax (NIT) could provide a targeted safety net at a fraction of the cost of UBI.
The US already has a limited NIT in the form of the EITC, which could be expanded to better match UBI goals by increasing benefits for individuals and providing payments to the unemployed.
Cultural resistance to “handouts” and preference for encouraging employment are major obstacles to implementing UBI or NIT in the US.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.