Open AccessThe Universal Basic Income
Author(s) -
Robert Stephens
Publication year - 2019
Publication title -
policy quarterly
Language(s) - English
Resource type - Journals
eISSN - 2324-1101
pISSN - 2324-1098
DOI - 10.26686/pq.v15i1.5293
Subject(s) - earnings , basic income , incentive , restructuring , economics , poverty , public economics , passive income , welfare , variety (cybernetics) , social security , income tax , labour economics , work (physics) , state income tax , gross income , tax reform , finance , microeconomics , economic growth , market economy , mechanical engineering , artificial intelligence , computer science , engineering
A universal basic income (UBI) would provide all citizens with a guaranteed income, irrespective of their earnings, age or household status. It would be financed from a flat-rate personal income tax. It would replace the existing work-based social security system with its plethora of benefit types, abatement rates and eligibility rules. However, when the trade-offs between the competing objectives of a tax/benefit scheme are considered, and the variety of individual and family circumstances that need to be addressed, the apparent simplicity of a UBI quickly disappears. The article shows that while the current tax/benefit system represents a ‘welfare mess’, and needs substantial restructuring, a UBI does not necessarily provide an adequate income for poverty relief, nor ensure labour force incentives, at an acceptable fiscal cost.