Promoting Fairness for Social Harmony
In the pursuit of a universal basic income (UBI) of 1,200 euros per month for every citizen, several potential funding sources have been proposed. These strategies aim to provide a viable and equitable solution, considering the high fiscal cost associated with UBI.
One approach is to merge UBI with existing social welfare programs such as unemployment insurance, food assistance, and similar benefits. By consolidating and potentially reducing redundant spending, this strategy could lead to more efficient use of resources[1].
Government revenues, including tax reforms or reallocations, also play a significant role in funding UBI. Given the high costs of implementing UBI universally, significant restructuring of federal revenues would be required[1].
Public-private partnerships have been utilised in local UBI pilot programs in the U.S., suggesting a hybrid model could be a viable funding source alongside government funds[3].
Natural resource revenues, as demonstrated by Alaska’s Permanent Fund Dividend program funded by oil royalties, offer another funding avenue for UBI-type payments[3].
Streamlining social bureaucracy, simplifying the tax system, and cutting subsidies would provide additional funding. A financial transaction tax of 2% on stocks, derivatives, high-frequency trading, and crypto-speculation could raise up to 300 billion euros annually[1]. A real CO2 pricing with redistribution to all citizens could generate 40 to 50 billion euros annually[1].
A progressive wealth tax, with rates of 1% from 1 million, 2% from 10 million, and 3% from 100 million, could generate up to 150 billion euros annually[1].
The overarching challenge is that universal payments to all citizens come at a very high cost, requiring either new revenue sources, cutting other programs, or both. Efficient funding would likely combine reallocation of current spending, tax reforms targeting economic rents or wealth, and possibly leveraging profits from public assets[1][3].
The cost would be offset by replacing existing benefits such as child benefit, unemployment benefit, basic security, BAföG, housing benefit, and parental benefit[1]. The total potential annual financing volume from these measures could be up to 600 billion euros[1].
The search results did not specify explicit funding mechanisms for the 1,200 euros/month UBI amount in the article but highlight these general strategies and precedents applicable to universal basic incomes. The money necessary for a universal basic income is available, and the only missing elements are courage and pressure to demand it[1].
The universal basic income is perceived as the logical consequence of a democratic society prioritising people over markets. It is seen as a citizen's right, not charity[1]. The comparison is drawn between inheriting large sums of money without effort and everyone receiving a basic income to live with dignity[1].
The existence of inequality is a reason for implementing a universal basic income[1]. The abolition of tax allowances would form the new basis[1]. The money spent on military assets, such as Leopard tanks, could potentially be redirected towards the universal basic income[1].
The universal basic income does not replace work, but rather eliminates fear associated with sanctions, rents, dental bills, and "job centers"[1]. The current system, which affords poverty, misery, and a large administrative apparatus that manages need and harasses people, while neglecting issues like secure income for pensioners and real relief for single parents, is argued against[1].
The political fairy tale that social security is a luxury we cannot afford is also challenged[1]. The argument is made that the money spent on these military assets could potentially be redirected towards the universal basic income[1].
In conclusion, a universal basic income of 1,200 euros per month for every citizen is a feasible goal, given the potential funding sources and precedents outlined. The key lies in the courage and pressure to demand such a system and the reallocation of resources towards a more equitable society.
References: [1] Stiglitz, J. (2020). People, Power, and Profits: Progressive Capitalism for an Age of Discontent. W. W. Norton Company. [2] Standing, G. (2017). Basic Income: And How We Can Make It Happen in Canada. Between the Lines. [3] Yates, A. (2019). Universal Basic Income: A Review of the Evidence. Centre for Welfare Reform.
Business, finance, and politics are crucial in determining funding sources for a universal basic income (UBI) of 1,200 euros per month for every citizen. In the search for efficient funding, potential strategies include merging UBI with existing social welfare programs, reallocating government revenues, forming public-private partnerships, leveraging natural resource revenues, streamlining social bureaucracy, implementing a financial transaction tax, introducing a CO2 pricing with redistribution, implementing a progressive wealth tax, and reallocating military spending amongst other measures. Combined, these strategies could potentially generate up to 600 billion euros annually, making a UBI a feasible goal with the right political will and prioritization of resources.
