Earlier quoted context omitted.
If there's inflation, the wealthy are going to earn more money in absolute dollars (if they don't, that means they're getting poorer). The same tax rate will automatically bring in more money from these people. I don't see the problem. You're making the common mistake of thinking that a given tax rate (as a percentage) equals a fixed amount of revenue, which is just plain wrong. A fixed percentage of a rising amount…
Ok, that's fair - I still see a few problems though. First, if you're right and the wealthy keep making more in absolute dollars and therefore paying more in taxes (IE UBI doesn't make them poorer) then we still have to index the UBI against inflation. And every time UBI goes up, it will be an upstream battle against people who had the same common mistake that you suggest that I made. In other words, in this case at…
Re: Why a Universal Basic Income Will Not Solve Poverty
#251I don't understand what you're getting at here. Yes, the point of wealth distribution is to reduce income inequality. The UBI achieves that, by taxing high-income people and redistributing it to everyone (in effect redistributing it to the poorer people, because the wealthier people will be paying it all back in taxes). With tax rates fixed, revenue collected will be greater if wealthy peoples' incomes rise, and this will allow the UBI to be indexed up. Why would there be an "upstream battle"? Nothing has to change when the tax rate is the same. What's the problem?