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Old 01-19-2017, 02:25 PM
 
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Or would it be in addition to under any proposed legislation in our country?
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Old 01-19-2017, 04:20 PM
 
Location: Ohio
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Quote:
Originally Posted by education explorer View Post
Or would it be in addition to under any proposed legislation in our country?
Proponents of Universal Basic Income claim it would replace all current Welfare Programs and also Social Social Security, however such claims are disingenuous at best.

There is no current or proposed legislation regarding UBI, excepting that the EITC (Earned Income Tax Credit) is a form of UBI. Note that Social Security is unearned income and does not qualify for the EITC.

https://www.ssa.gov/ssi/text-income-ussi.htm

As of November 2016 there were 57,700,000 Social Security beneficiaries drawing an average of $1,341 per month.

https://www.ssa.gov/policy/docs/quic...stat_snapshot/

and

https://www.ssa.gov/news/press/basicfact.html

22.9% of the population is under 18 years, or based on a population of 318,000,000, the adult population over 18 years is 245,178,000

Social Security taxes collected in 2016 were $839,462,318,932 based on a 12.4% payroll tax, suggesting a payroll of $6,769,857,410,741 ($6.7 TRILLION).

https://www.ssa.gov/oact/progdata/taxquery.html

$3,567,714,855,461 ($3.5 TRILLION) in payroll taxes would need to be collected to provide "Social Security for all".

That would require an increase in FICA payroll taxes to 52.7%, or 26% each for employer and employee to pay a Universal Basic income of $1,341 per month.


Note that SNAPs annual expenditures are $75 Billion and HUD Section 8 is about $550 Billion, totaling about $625 Billion, so even if you shifted those monies to "Social Security for all" you'd still be looking at a hefty payroll tax to generate $2,942,714,855,461 ($2.9 TRILLION).

One of the over-looked issues is the wide variance in Cost-of-Living in the US. For example, two single retirees, each receiving $1,100/month in Social Security Disability or Retirement. The problem is that $1,100/month equals...

$2092.95 per month in Cincinnati
$761.07 per month in San Fransisco

...due Cost-of Living differences.

The point being that many seniors --depending exactly upon where you live -- receive HUD Section 8 subsidies.

$1,341 gets you a Section 8 subsidy in San Francisco, Cincinnati, Stamford (CT) and other cities/counties, but not in low Cost-of-Living areas.

Married seniors whose total household income is $1,341 per month are also entitled to SNAP (Food Stamps) in most locales, since they are below the federal poverty level threshold.

As you can see, in spite of claims by UBI proponents, it's unlikely that traditional Welfare Programs like SNAP and HUD Section 8 would be eliminated and the only way to do so would be to increase the monthly UBI benefit, which in turn would increase the payroll tax rate even more.
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