Also, this language is just not accurate:
> unraveling President Trump’s tax breaks for the wealthy
It is mostly for corporations; middle-class citizens will also see a reduction in their taxes. Until the market meltdown last week, the new tax plan was widely praised even by very liberal business leaders such as Tim Cook. US corporate taxes were absurdly high and tax reform has been positive in terms of the slew of bonuses offered to employees (not executives), raising of corporate profits, and helping repatriate huge amounts of capital back to the US.
While the middle class got something, the majority went to the wealthy, and as per my previous comment on shares, they are not going to be flooding it back into the economy.
Also US corporate taxes were about median for the world, they were not absurdly high, you should check out some countries in Europe for that.
While some countries offer low tax rates or incentives, they are to attract international business because they have no other means to attract them. The US is not like Ireland in this respect.
US companies have had record profits recently. The big tech companies like Apple are hoarding cash reserves. Why is giving them more cash going to change their approach?
1. Issue bonuses at end of 2017, push out tax obligation into 2018
2. Mush into newer, much lower tax rate
There is a reason they chose to issue bonuses and not raises.
Everybody currently aged between 18-64 who is not living in poverty or is unemployed is already receiving that amount of money (or more) from her/his employer.
Hence, as a cheap palor trick you could just relabel part of the paycheck as UBI (so the money is there). In addition, you could then subsume most social services inside a flat amount, saving money in admin overhead.
The hypothetical counter argument is that lots of people would not work if given UBI. This has been shown to be false when tested. Also, social services in Germany and many Scandinavian countries are not that far off and these countries do not have 50%+ unemployment.
Especially in the case of Germany they're pretty far off. After loosing employment, iff you're looking for new employment, you indeed get ~60% of your former salary. For a maximum of 12 months, if you were employed for 2 years. But after that, or if you never worked, it's considerably less. ~400EUR, plus additional money for rent. Additionally there's age dependent additional money for each kid (~240EUR - 316EUR).
And if you've independent income/wealth you're not eligible.
That won't do it. $1,000 a month for every working age adult would cost over $2 trillion a year. That is roughly equal to what the Federal government spends on Social Security, Medicare, Medicaid, and Defense combined. There is no way this plan can ever be cost neutral. For it to even be financially feasible it would need to come with a rewriting of the entire Federal tax system and budget (which would probably be a good thing, but it would be a political impossibility at this point).
A lot of the negative press the tax reform got was based on a lot of highly ambitious parts that fortunately didn't make it into the final bill.
- Political platform centered around automation impact on labor market.
- Proposing a UBI paid for by a higher corporate tax rate targeted at companies benefiting most from automation.
- Would be $1,000/mo paid to everyone aged 18-64, with no means test.
- Candidate is the former CEO and founder of Venture for America, Andrew Yang. He is 43 and already has backing of many Dem-leaning tech executives.
Imagine: On your first $24,000 / Year, you are taxed at -50%. This means, if you make $12,000, you get paid an additional $6,000. If you make $24,000, you get paid an additional $12,000. This is an additional reward for working! We want to incentivize working!
Person A makes 20k, person B makes 10k. Both work pretty shitty jobs -- I wouldn't want either.. Both work the same hours. No more jobs exist for Person A's job, so Person B couldn't rise up to their level if they wanted to.
GBI works because everybody gets it -- so nobody feels like they're getting special treatment, nobody feels like they're on welfare (which causes a mental stigma to begin with) and the goal is simply to cover average rents and maybe some food. Everyone should have food and a roof.
Your plan also doesn't account for what happens when all the jobs for both A and B close down because of automation which is the whole point for why we're discussing GBI more and more anyways.
If we all see that automation is or will be a problem for the labor market, isn’t it makes more sense to get the labor market ready to embrace the automation era?
Instead of making our youth going through college, why not have them sent to learn a craft or skill set?
I personal think only those who are good with school and like school should go to higher education. For the rest of us, a 4 years experience with no debt is far better 4 years education with 50 to 100k in student loan debt
Look, we're entering a period of history where the number of tasks requiring human labor will only keep decreasing. This will lead to a growing class of people for whom the labor market cannot provide a basic standard of living.
If a stronger welfare state isn't the answer to that problem, I've yet to hear what is, exactly.
I think we have been in that period of history for almost 100 years now.
Trades like plumbing, electrician, lineman, P&C technician, mechanic, power plant operator, transmission/distribution operator, welder, etc...
I'm a web developer, and learning ml/ai so I can automate myself out of one of the last existing careers.
We can move to a post-scarcity world where all menial tasks are done by collectives of robots who work for all mankind... it is possible and would be cool, I just don't know how we begin to get there.
By the way most academics/economists agree that in 12 years there will be a minimum of 40% of the current jobs gone. Not replaced by new jobs in ai/ml - completely just gone. As in those 40% of people have no use for society at all.
38% of jobs could be gone by 2030 according to this report.
How do we feed/clothe/house a populace when half of the people can't work? We'll need to go back to a 1800's era system where people basically own/live/work off their own land and farm their own food, or something communal possibly? I'm curious to see how it plays out... 2020s will be pretty eventful though if robotics goes as planned over the next decade.
This author noted that the farm equipment revolution threw a very high percentage of Americans out of work. They were forced off the farm and had to move to the cities (where the industrial age was hitting it's stride.)
It wasn't easy, but it led to huge improvements in quality of life.
I’m really skeptical.
People to cut the crops, people to harvest lax, people to spin wool, people to weave cloth, people to make soap, street cleaners, navvies, telephone operators, travel agents, and the list goes on.
Sure, there are still people who do all of those, but not like it used to be.
And this transition, that is, the use of automation to increase the power of capital by decreasing the cost of labor, is what lead to the original ideas of full communism.
I'm also for single-payer because we spend too much on Sales/Commercials/CEOS for insurance companies, and medical billers who we could all put out of jobs because all they do is figure out how to pay hospitals and collect money from us or our employers.
I feel though that trickle-down has failed immensely. The fact is trickle-out is what happened trickle-out-to-my-caymen-island-account.
Rich just re-invest/hoard money. Now if they'd trickled up... it would've worked wonders for the economy. Give the poorest of the poor money --and they'll spend it on booze/drugs/homes/food does it matter? The money still circulates and finds it way back up to the rich/b2c businesses.
$10k given to Bill Gates goes into the bank account, and stays their collecting dust and interest.
$10k given to a struggling family goes into a new car, or braces for Jimmy, etc... Which in turn goes to payroll for employees at the dentist or car-lot, and that goes on and on...