The Financial Feasibility of Basic Income and the Idea of a Refundable Tax Credit in Japan

Author(s):  
Shinji Murakami
2020 ◽  
Vol 36 (3) ◽  
pp. 284-300
Author(s):  
Federica Rossetti ◽  
Femke Roosma ◽  
Tijs Laenen ◽  
Koen Abts

AbstractThe article focuses on one of the core but controversial features of a universal basic income (UBI): its unconditionality. Using qualitative in-depth interviews collected in the Dutch municipality of Tilburg in 2018–2019, we examine the arguments underlying popular opinions about a UBI and work conditionality. The analysis suggests that these arguments can be interpreted from two theoretical perspectives. On the one hand, respondents make frequent use of deservingness criteria referring to the characteristics of welfare recipients, such as their need and work willingness. On the other hand, they justify their opinions using arguments related to the characteristics of welfare schemes, such as their administrative and financial feasibility. Our findings offer important insights concerning political actors who support (or oppose) the real-world implementation of a UBI.


Author(s):  
Malcolm Torry

This chapter examines whether a Citizen's Basic Income is feasible — that is, capable of being legislated and implemented. To answer this question, the chapter considers multiple feasibilities: financial feasibility (whether it would be possible to finance a Citizen's Basic Income, and whether implementation would impose substantial financial losses on any households or individuals); psychological feasibility (whether the idea is readily understood, and understood to be beneficial); administrative feasibility (whether it would be possible to administer a Citizen's Basic Income and to manage the transition); behavioural feasibility (whether a Citizen's Basic Income would work for households and individuals once it was implemented); political feasibility (whether the idea would cohere with existing political ideologies); and policy process feasibility (whether the political process would be able to process the idea through to implementation). After explaining each of these feasibilities in detail, the chapter asks whether they are additive, conjunctive, or disjunctive.


2019 ◽  
Vol 14 (2) ◽  
Author(s):  
Wee Chung Gan

Abstract The cost of basic income is typically estimated for a particular year. However, to assess the financial feasibility of basic income, it is also important to consider how much basic income will cost in the future. This is especially important in countries experiencing an ageing population, where the proportion of workers is expected to shrink. This article considers basic income as a universal life annuity and develops two models based on actuarial concepts to estimate the flat tax rate required to finance basic income. The first model considers the cost of basic income over the lifetime of the current population and the second model additionally considers changing population dynamics. The proposed models are conceptually simple, providing a straightforward way to assess the financial feasibility of basic income. Using Singapore data, the models show that the monthly cut-off income separating net contributors and net recipients is around $2710 and benefits around 39 % of adult residents. A tax rate of around 22 % is required to support a basic income of $600.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Malcolm Torry

Abstract In this article ‘Basic Income’, ‘Basic Income scheme’, ‘experiment’ and ‘pilot project’ will be defined, and Basic Income pilot projects in Namibia and India will be distinguished from Minimum Income Guarantee experiments in the USA and Canada and the ambiguous pilot project in Finland. The conditions for running a genuine Basic Income pilot project in a country with a more developed economy will then be outlined, and microsimulation will be found to be the only reliable method for testing a Basic Income scheme for financial feasibility. The conclusion will be drawn that microsimulation can provide many of the results that a pilot project would deliver, but that pilot projects of financially feasible Basic Income schemes might still be useful to test dynamic macroeconomic and labour market effects.


Nature ◽  
2020 ◽  
Vol 583 (7817) ◽  
pp. 502-503 ◽  
Author(s):  
Carrie Arnold
Keyword(s):  

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