far less than the $3.2 trillion per year needed to provide every American with $10,000/year stated by an earlier poster. So that's already $2 trillion unaccounted for right there.
Essentially, those numbers are ludicrous. When including a public aid system cut back to give EBT covering children of low-income households (rather than just handing out more cash every time you pop out a baby), the burden to taxpayers (counting money moving downward from rich hands into poor hands as "burden on taxpayers") is a trillion dollars lower.
Is $10,000/year even enough to live on in the US? http://www.numbeo.com/cost-of-... [numbeo.com] lists the price of a one bedroom apartment outside the city center as $900/month, i.e. around $11,000/year.
You're thinking in terms of today's market. There's a huge amount of overhead in cost of risk that doesn't scale downward to small income demographics, because those demographics have unstable risk. I talked about this.
There would be no money left over for food, education, medicine, etc.
Medical and education are separate considerations. We have entire budgets and even economic debates over those; I understand both sides of the education economic debate, and I stand on the side that workforce development branded as "education" is an economically-harmful practice that creates a lot of waste in training excessively-large skilled workforces and flooding the labor market (I'm the guy who invented that argument in the first place; it takes several pages to explain).
so anyone who is poor today would still be poor under this new system - and living out on the street. Well, nicely done - you did not eliminate poverty after all
Checking my models.
National average HUD eligibility for extremely-low-income households for 1, 2, and 3 persons are $12,650, $14,200, and $15,800. These households's after-tax incomes would increase by approximately $7,250 for single-adult households and $14,500 for two-adult households. For just low-income households, incomes are $29,450, $33,700, and $37,900. Their incomes increase by just under $7,000 for single-adult households and just under $14,000 for two-adult households. Again: each of these households also gets an EBT-mediated public aid for any children, for any service for which they qualify (WIC food assistance, etc.), currently a state service and likely run as such for the foreseeable future.
The bottom 5%, 10%, and 15% of incomes are $7,100, $12,300, and $17,100. Such single-adult households would increase after-tax income to $13,800, $18,000, and $22,000, each above the Federal poverty lines for 1, 2, and 3 individuals, respectively. Two-adult households at these income levels would increase to $21,000, $26,000, and $30,000, above the Federal poverty lines for 3, 4, and 5 individuals.
The median Single Father household would increase its spendable income by $6,400; the median Single Mother household would increase its spendable income by $6,900.
Two-adult, married-filing households at $600,000 income would have about $30 more spendable money; two-adult, married-filing households at $700,000 income would pay $370 in additional taxes. Your average 1-adult, single-filing household is less-advantaged, with $200,000-income households retaining $1,000 more in spendable income, $300,000-income households paying $1,000 more.
Among the less-advantaged 1-income households, the top 1% income level of $330,000 pays $1,600 more in taxes. The 0.1% level of $1,700,000 pays $8,504 more in taxes. A household with $10,000,000 of income would pay $41,700 more in taxes.
These tax increases represent around $20 billion of a $1,000 billion reduction in tax burden, and can be eliminated by adjusting the general income tax (progressive). Currently, the total top-bracket income tax in my model is 40.0%, compared to 39.6% in today's tax brackets; a lower income tax is desirable.
So no homelessness, no hunger, child welfare covered no worse than the current system, no qualification for adults (meaning those welfare households are 100% guaranteed to *receive* the aid provided by UBI, rather than having to qualify for HUD vouchers and food stamps for the adult members of the household), and immediately stronger financial position for current welfare-qualifying households. I'd call that "solving poverty", since suddenly nobody in America is deprived of the basic needs of food, shelter, clean water, clothing, and personal care consumables.