For all that we keen Basic Income supporters love to enthuse about the many potential, far-reaching benefits of a Basic Income system, most people mainly just need to be reassured on one simple issue: Is Basic Income Affordable?
And what they mean by that is: Is it financially affordable for the government and for the taxpayer?
Many people, although they would personally like to have a Basic Income, are worried that it would be so expensive that, in order to avoid mounting debts and financial collapse, the government would be forced to order massive increases in tax rates.
This is not remotely true, however, for the following, key reasons:
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Under a Basic Income system, many existing benefits will no longer be needed - saving vast sums of money. Furthermore, some of those existing benefits that remain, will be needed by far fewer people or may be paid at lower rates - saving even more.
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Most of the huge means-testing industry of bureaucracy needed for our current benefits system, will no longer be needed.
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Personal Tax Allowances protect the initial incomes of wage earners. Basic Income, however, would take over this task by simply providing a guaranteed income to every citizen - meaning Personal Tax Allowances could be scrapped, saving the treasury vast sums in lost tax receipts.
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Under a Basic Income system, since every pensioner will receive the Basic Pension, the need to incentivise people to save for retirement will not be so great, and the huge tax relief levels on pension contributions - which largely benefit relatively rich people - won't be needed.
We will still want to encourage people to save - but tax-efficient savings schemes can operate over much shorter periods than pension schemes. People will be able to get their hands on their savings much sooner - and, consequently, the tax break needed to encourage people to save, will probably be much lower. All in all, it can mean a substantial tax revenue boost for the government.
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Introducing a Basic Income system may mean that there may also be some modest changes to tax rates, but that is all they will need to be; modest changes - fairly marginal changes that will be perfectly reasonable, given that every citizen will be receiving the Basic Income.
So, is Basic Income affordable? Overwhelmingly, yes. Indeed, the more sensible question would be whether we can afford to continue with the bureaucratic, inefficient, complicated mess of a tax and benefits system that we currently endure.
The idea that Basic Income is financially unaffordable, is simply a myth, perpetuated by people who are not taking into account the simple, logical and fairly obvious changes that would most likely accompany its introduction.
People who don't understand these matters should stop falsely claiming that it isn't - and go and educate themselves about the issue instead!
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To learn more about Basic Income, please read this book:
The Case for a Basic Income.
And if you want to support our work in promoting the Basic Income, please consider making a contribution via our Patreon page. We do important work here - and your support is hugely appreciated.