Our Nation's Prosperity Depends on Two Factors
Our ability to produce all we need, and
Our ability to buy all we produce.
Our Ability to Produce is Not the Problem
The problem is matching the ability of the consumer to buy with our ability to produce.
UBI is a Tool to Grow the Economy
With a 0.2% payments tax we could eliminate all our other taxes, which would give us extra spending money, and we could afford to pay $24k in universal basic income to every adult citizen in the nation.
Basic income puts money in the pocket of consumers, increasing demand so the economy can reach its full potential.
A Stable Retirement
We could also afford to pay senior citizens ages 70 and over $30k in universal basic income.
This would replace Social Security with a more stable and efficient retirement system.
Earned Income Credits Incentivize Work
With a booming economy, we want people to work, so we should couple basic income with earned income credits.
Note that welfare recipients lose their benefits if they work today, trapping people in a cycle of poverty.
A 0.2% payments tax would generate sufficient revenue to pay the following credits.
$0 – $10k
$10k – $20k
$20k – $30k
Earned Income Credit