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Here’s What The Universal Basic Investment-Value Added Tax Policy Would Mean For You

The UBI-VAT policy is a conservative economic policy proposal that replaces the needs-based welfare system. And this is your one-stop-shop that talks everything it would and wouldn’t do.

If you have a problem keeping attention and reading a full-length, in-depth article, this is an article for you. Like me, you probably find yourself simply scrolling through any article of magnitude, because I just don’t have the attention to waste much time reading every word.

Therefore, this will just be a list of thoughts of different points on what UBI would and wouldn’t do if it was every decided to replace our current welfare system.

It will be an article in motion. I.e., I will continue to add to this article when I get questions in the comments section and/or think of more to add.

If you don’t know what the UBI-VAT policy is, it can most simply be explained as a replacement for the communistic welfare policy. Like welfare, its purpose is to serve as a mechanism which provides a socioeconomic floor for a society. It differs in that it (1) does not involve a transfer of wealth from rich to poor via taxation of income, (2) does not provide any disincentive for those receiving it to not earn/work more, (3) limits bureaucracy waste, (4) limits fraud, (5) eliminates the dehumanization of the unfortunate, (6) limits inflation, and (7) spurs capitalism.

In fact, it’s pretty much the exact opposite of welfare. So, here’s our logical and rational assessment of what the UBI-VAT policy would and wouldn’t do — so you can decide for yourself if you think we should get rid of our communistic welfare policy and transition to an economically sound, responsible, and capitalistically embraced ‘ground-floor’ policy.

I’ll start with addressing the 7 ways in which a UBI-VAT policy differs from the communistic welfare policy that were noted above.

(1) UBI does not involve a transfer of wealth — Unlike welfare, UBI does not work by taking earnings from workers and repackaging them for those who can’t afford to live. Rather, revenue is collected through sales tax and redistributed to all citizens the same. The worker and the person in need receive the same benefit… everybody receives the same benefit, not matter who they are… therefore, there is no transfer of wealth.

(2) UBI does not deter people from earning/working more — Unlike welfare, UBI does not punish people for working and/or earning money. Why work harder to earn less? The rich make this argument when it comes to paying taxes, but the thought process is the same for the poor. With UBI, nobody loses their assistance by working hard and/or earning more. There’s no reason to not do more. In fact, studies show that when people receive unconditional cash assistance they are actually more likely to pursue work opportunities in order to boost their earnings.

(3) UBI limits bureaucratic waste — Unlike welfare, UBI is not a needs-based program. There is very little need to waste resources figuring out who should or shouldn’t receive their foundational cash flow. And because people are charged with the task of using their cash to buy their own food, shelter, and education; there is little need for bureaucratic efforts to figure out who provides the basic necessities. 

(4) UBI limits fraud — Unlike welfare, UBI is not given to people of a certain group for a certain reason. There is nothing to defraud in order to receive the benefit, as long as you are a U.S. citizen. And because government is removed from the process of providing housing, food, education, there is no position for people of government or business in a position to defraud the system in order to win some sort of contract or license to supply societal necessities.

(5) UBI limits dehumanization — Unlike welfare, UBI does not break society into different classes. More importantly, it doesn’t break society into those who have and those who don’t have. UBI does not break a population into those who give and those who receive — a way of living that tends to tear the fabric of societies apart.

(6) UBI limits inflation — Unlike welfare, UBI does not lead to inflation. When paired with a VAT of 10-15% and the elimination of welfare UBI would be implemented at no extra expense relative to our current communistic welfare system. More about UBI and inflation.

(7) UBI spurs capitalism — Unlike welfare, UBI does not control who spends how much on what and to who. It also means that everybody has the ability to fail — a societal environment that is required for capitalism to thrive. UBI doesn’t just mean that those with the lowest economic output have enough cash to survive; it also means that everybody with an entrepreneurial dream has the ability to fail.

(8) UBI increases social mobility — Unlike welfare, UBI does not lock anybody into a certain location. Relocating is hard, especially for poor people. But, with a UBI-VAT policy, people have the ability to relocate. It gives people the freedom to move. They can move from places with less opportunity to places with more opportunity. Or, they can move from expensive places to live to more affordable places to live.

Want to know how UBI would affect your life? Let me know what variable or characteristic of your life you’d like to get my feedback on, and I’ll add it above.



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Heavily researched. Thoroughly vetted.


BY OMNICORE     Nov 26, 2021



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