TED Conversations

Bastian Brandt

This conversation is closed. Start a new conversation
or join one »

Universal monthly allowance for all, financed by a 5% sales tax.

This Monthly Basic Income is also granted to every child that is registered in the region but will be given to their parents until it reaches the age of 18.

It may be granted to them directly, if they use this money to pay their school-fee.

The money to pay for the Monthly Basic Income will come from a purchasing tax of 5% which will be added to the price of all goods and services that are purchased and monthly collected from all business owners.

Due to the fact that richer people buy more goods and services, they will pay the 5% purchasing tax, as well as the 5% of high priced, high quality items more often, than people with less income. This money will support every registered citizen in the region and it will lead to a higher degree of financial equality.
The monthly collected amount from the 5% Purchasing Tax, shall only be used to be given to all citizens of the region as a Monthly Basic Income, that serves as a social and financial safety net for them.

The mathematics behind the Monthly Basic Income is as the following:

Total monthly collected Purchasing Tax :(divided by) The regions population

=(equals) The amount of money that will be granted to every registered citizen of the region as their Monthly Basic Income

I am a big supporter of the idea to implement this Monthly Basic Income, because it represents the principle, that one supports all (the customers that pay the 5% purchasing tax with their every purchase) and all ( the representing officials) are supporting every single citizen of the region.

Topics: economics society
+5
Share:

Showing single comment thread. View the full conversation.

  • thumb

    Fritzie Reisner 100+

    • +2
    Host
    Oct 11 2012: Sales taxes are typically considered "regressive" taxes. That is, because poor people spend a higher proportion of their budgets on sales taxable items, programs funded in that way place a greater burden on the poor than on the wealthy as a proportion of income.
    • thumb

      Mats Kaarbö 10+

      • 0
      Oct 12 2012: Are there any other taxes, that wouldn't put a greater burden on poor people than on the wealthy, that could be utilized then? Do you have any suggestions? What about income tax? Millionaires and billionaires won't hurt by paying a little more of that, right?
      • thumb

        Fritzie Reisner 100+

        • +1
        Host
        Oct 12 2012: I notice Bastian is in the Netherlands. The tax structure in different countries is surely different, both in terms of categories taxed and what the inclusions and exceptions are. This means the incidence of different sorts of taxes will be different in different countries. In the United States, sales tax is typically considered the most regressive.

        I commented on the sales tax, because that was the scenario Bastian put forward, and I thought he might want to take a second look at his proposal.

        There are also many countries that already have a "transfer" to provide baseline income to the very poor or disabled. Obviously the need for funds would be much greater to offer a universal income transfer.
    • thumb

      Bastian Brandt

      • +1
      Oct 14 2012: Sales taxes are typically considered "regressive" taxes. That is, because poor people spend a higher proportion of their budgets on sales taxable items, programs funded in that way place a greater burden on the poor than on the wealthy as a proportion of income.

      Poor people typically also don't receive a Monthly Basic Income. But I absolutly agree, the tax has to be fair, support equality and needs to be set up in an algorithm that works for all, without exception everyone needs to be equally bound by the whole concept, in order for nobody to ever become the feeling to be treated unfairly as far as the monthly basic income is concerned, because it is for all the same, without exception.

      • Jerry Whidby

        • 0
        Oct 15 2012: I really do want to encourage you to read the Fair Tax book I recommended above. Everything you are asking for is in that tax plan. You do not pay any income taxes, you get a cost of living prebate check, only new items are taxed. For example if you buy a used car you pay no taxes, but if you buy a new car then you do pay taxes. It is revenue neutral to the government. Business to business transactions are not taxed. That makes any country that implements this a very enticing place for businesses at home and abroad. That also helps the consumer, since businesses do not actually pay taxes. They just add any taxes to the cost of the product, and then the consumer pays the taxes. Chile has something very similar, and their economy is thriving since it was implemented. They have a wonderful website for the Fair Tax http://www.fairtax.org/site/PageServer?pagename=about_faq_answers

Showing single comment thread. View the full conversation.