UBI would be taxable, so that would claw back some of it.
There would be huge cost savings in benefits with most people no longer needing them, student maintenance loans could be abolished and the administration of all these schemes would reduce by a massive amount eg most unemployed people would not need to be signed on, there would be no need for them to be checked up on to see if they're looking for work. Most sick and disabled people wouldn't need to be constantly tested again and again, very few appeals would be made, most of those in work wouldn't need any other top up payments like Access To Work, Universal Credit, Tax Credits, Housing Benefit, Council Tax Support. Pensioners wouldn't be forced into a humiliating means test to top up their pension with pension credit etc etc.
Fraud would be virtually eliminated.
The remainder would be raised by a robot tax on employers to share the benefits of automation and help to negate the negative effects.
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Originally Posted by Maggy J
The trouble with social engineering is that there will always be mavericks that not only try but do buck the system.
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But people would have it as a right for simply being over the minimum age decided and living in the UK.
This is one of the reasons why I think we need to deal with immigration as a matter of urgency. Even if it can be proved that the economy needs immigrants at the moment, they will become a burden in future years. Perhaps we ought to be giving out fixed time visas right now.
The only fraud I can think of would be claims for non existent people or those who have died, with all other current fraudulent activity no longer being relevant (eg not declaring savings, income etc) fraud inspectors could concentrate on this activity.
Quote:
Originally Posted by Onramp
Problem with UBI is that it financially disincentivises human existence in the eyes of those that would be paying.
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Rather than increasing the tax for those still in employment, it would be paid for by paying less out in benefits, reducing administrative costs, reducing fraud, increasing the tax take by making it taxable income and a tax on employers who save money on their wages bill by using robots.