Solarpunk, taxation, and universal basic income

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Universal Basic Income (UBI) is one of the big ideas I’ve seen floating around the solarpunk community. To learn more, I read some of the more scintillating chapters of Basic Income: A Radical Proposal for a Free Society and a Sane Economyand apparently there haven’t been any studies big enough to see what the true impact of a basic income would be on society. The authors suggested that a good starting place would be a baby step toward UBI where everyone got a small stipend.

The Adam Smith Institute recently published a paper on the market case for UBI and outlined the reasons why people should be supporting a move toward UBI. One of the main reasons is mounting concerns over technological unemployment with the rapid rise of automation and AI-driven production. For instance, truck and taxi operators are expected to be displaced by autonomous vehicles in coming years. Many other jobs will be at risk as well as computer systems get better at taking over tasks once performed by humans.

One proposal that I’ve been following that was mentioned in the book was the Fair Tax (HR 25) which eliminates the Federal Income Tax and replaces it with a Federal Sales tax. Where this gets interesting is that as a function of switching to a Federal Sales Tax, everyone in the country is given a “prebate” to account for income disparity at the lower end. This could be considered a sort of light UBI as everyone in the country will get the same “prebate” regardless of their income.

Another bonus of the Fair Tax is that it is only implemented once on an item. Used items are not taxed meaning that we can incentivize conserving resources while giving us a nationwide test of how to implement a full-scale UBI.

Perhaps the best part is that the Fair Tax eliminates the IRS and the current loophole-ridden Federal Income Tax system. I think we all know that the current system has more than its fair share of problems. Every time a new tax “reform” bill is brought up in Congress, we see how much of a losing game the income tax system is.

The Fair Tax is not perfect, but it seems like a workable solution with widespread existing support in the US Congress. More information is available about the Fair Tax at http://fairtax.org/faq.

Sound off in the comments if you think UBI is the way of the future or if you have any thoughts on the Fair Tax. Thanks for stopping by!


Some of the text for this article is recycled from my Tumblr post on the subject: https://solarpunk-gnome.tumblr.com/post/163921938517/taxation-and-solarpunk-a-few-thoughts

Image is “Taxes” by 401kcalculator.org via a Creative Commons license.

 

1 thought on “Solarpunk, taxation, and universal basic income

  1. Pingback: The Rules: Capitalism, UBI, and the Blockchain | Solarpunk Station

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