3 thoughts on “The pandemic will shake up the welfare state – and UBI will be a central part of the debate”

  1. Posted 28/05/2020 at 13:29 | Permalink

    I like the UBI idea, but it needs to completely replace the entire benefits and personal tax allowance system including old age pensions. Grafting it onto the existing system would be inordinately expensive and further complicate an already Byzantine web.
    Set it at £5k pa for adults and £2k pa for children.
    Anyone currently receiving (or who has accrued) a state pension > £5k pa gets to keep it, everyone else gets UBI.
    All income over and above UBI gets taxed (ie abolish all personal tax allowances).
    No council tax charged on Band A or B properties.
    Everyone is entitled to a council house, but pays 35% of income (ex-UBI) for it.
    Broadly net neutral in fiscal terms. But it would never work politically: those who gain will keep quiet, those who lose will howl.

  2. Posted 02/06/2020 at 12:03 | Permalink

    The UBI idea is perhaps viable in it’s potential to replace government run welfare, but many will not be happy when the richest also receive. This is why Milton Friedman proposed the Negative income tax, basically you have a income tax threshold, and if you fall below receive 50% of the gap between you and the threshold, guaranteeing that work always pays and that the richest in society are net contributors.

  3. Posted 03/06/2020 at 19:34 | Permalink

    At the risk of sounding like a scratched record, Friedman proposed that the NIT should operate at the household level. It would be universal across households and you could call it an income credit if you are below the threshold. Indeed, you might want to call it “universal credit”

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