@garethmorgannz’s @grantrobertson1’s #UBI is worse than I thought @JordNZ
03 Apr 2016 Leave a comment
in applied welfare economics, labour economics, labour supply, politics - New Zealand, poverty and inequality, welfare reform Tags: expressive voting, New Zealand Labour Party, rational irrationality, universal basic income
The Universal Basic Income of $11,000 per adult proposed by the Morgan Foundation and floated as a idea to consider by the New Zealand Labour Party leaves the poor way below even that the stingy as the poverty line switch is that 50% relative poverty line. Little wonder that the Labour Party said that increasing the Universal Basic Income to avoid leaving current beneficiaries worth off would lead to a very high tax rate.
Source: A Universal Basic Income may be a good idea – but we will still need social security that works.
@JordNZ best way to talk yourself out of #UBI is listen to advocate list new taxes required
01 Apr 2016 Leave a comment
in economics, income redistribution, labour economics, labour supply, politics - New Zealand, poverty and inequality, Public Choice, public economics, welfare reform Tags: universal basic income
Questions for @grantrobertson1 on the #UBI @JordNZ
30 Mar 2016 1 Comment
in labour economics, labour supply, politics - New Zealand, poverty and inequality, welfare reform Tags: flat rate tax, New Zealand Labour Party, top tax rate, universal basic income
Labor Party finance spokesman Grant Robertson yesterday ruled out an income rate tax of 50% to fund a Universal Basic Income. Labour is considering a Universal Basic Income. It released a background paper for that purpose as part of its Future of Work Commission.
Source: Taxpayers’ Union rubbishes Universal Basic Income idea | Stuff.co.nz.
Questions arise as to how the Labour Party will fund its Universal Basic Income after ruling out a tax rate of 50%. As Brain Easton said:
Many advocates put the UMI forward without doing the sums. Those who do find that the required tax rates are horrendous or the minimum income is so low that it is not a viable means of eliminating poverty. Among the latter are New Zealanders Douglas, Gareth Morgan and Keith Rankin.
The Labour Party’s background paper already has said that the Universal Basic Income proposed by the Morgan Foundation is insufficient because many beneficiaries and all retirees will be much worse off. They receive much more in income support under the existing welfare state and they would under a Universal Basic Income of $11,000 per adult as proposed by the Morgan Foundation.
The solution proposed by the Labour Party is a supplemental income transfers to ensure no one is worse under a Universal Basic Income. This will greatly increase the cost of a Universal Basic income in comparison to the Morgan Foundation proposals.
https://twitter.com/grantrobertson1/status/711758860659240960
A series of questions come to mind that the Labour Party and its finance spokesman Grant Robinson must answer if they are to go anywhere with a Universal Basic Income;
- Is not the point of a Universal Basic Income to replace the welfare state, not supplement it?
- How will the Labour Party fund its Universal Basic Income plus the supplemental income transfers without introducing a $8 billion tax on capital income (including the family home) as in the Morgan Foundation’s proposals?
- The Universal Basic Income proposed by the Morgan Foundation requires $13 billion in extra taxes ($8 billion from taxing capital and $5 billion from a 30% flat-rate income tax) so how much more to that will Labour need for a Universal Basic Income plus supplemental income transfers?
- What is the maximum top marginal income tax rate that Labour will consider to fund a Universal Basic Income?
- Will the Labour Party’s Universal Basic Income be funded by a flat rate income tax or a progressive income tax system?
Source: How we pay for a universal basic income – Whiteboard Wednesday.It would have been my first point
Just exactly how big is @grantrobertson1’s great big new tax?
20 Mar 2016 1 Comment
in labour economics, labour supply, politics - USA, poverty and inequality, welfare reform Tags: Director's Law, universal basic income
https://twitter.com/grantrobertson1/status/711303279284629505
Gareth Morgan’s universal basic income, by his own calculations, make well-to-do people better off and the poor and old age pensioners worse off at the cost of $12 billion tax rise. The Labour Party has now adopted this policy as worth considering.
Source: Gareth Morgan Presentation Slide 20 of 27 | Big Kahuna Book.
Source: Gareth Morgan Presentation Slide 20 of 27 | Big Kahuna Book.
Poverty rates in two-earner families in the USA
19 Mar 2016 Leave a comment
in labour economics, labour supply, occupational choice, poverty and inequality, welfare reform Tags: asymmetric marriage premium, child poverty, family poverty

HT: Matt Bruenig
James Heckman on what money cannot buy including a universal basic income
08 Mar 2016 Leave a comment
in economics of education, politics - New Zealand, population economics, poverty and inequality, welfare reform

Source: The Economics of Human Development and Social Mobility, James J. Heckman, Stefano Mosso, NBER Working Paper No. 19925, February 2014.

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