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Basic Income

Christian Engström explores the possibility of implementing a Basic Income in Sweden, addressing the problems with social assistance and unemployment benefits. He presents a concrete proposal for a tax-free monthly payment of 8,333 SEK (~900 €) to everyone aged 19-64 with no other income. The Basic Income is phased out as individuals start earning their own money, with a cost of 132 bn SEK and financing options of 142 bn SEK.

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Basic Income

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  1. A concrete and financed proposal Basic Income Christian Engström

  2. christianengstrom.wordpress.com

  3. Basic Income Is it possible?

  4. Basic Income Is it possible? Yes, obviously! We already have basic income (sort of)

  5. The Problem Social Assitance (socialbidrag) — the jaws of the welfare trap • Means tested • Arbitrary • Insecure • Humiliating • Totally destitute • 100% marginal effect

  6. The Problem The Unemployment Agency(Arbetsförmedlingen) does not give people employment Unemployment benefits: • Tied to activities • Bureaucratic maze • Time limited

  7. The Model Goal: To find a model for Basic Income that is - Economically realistic - Politically realistic

  8. The Model A concrete proposal: • 8,333 SEK/monthtax free (~900 €) • to everyone 19-64 • living in Sweden • if (s)he has no other income

  9. Money for nothing to everyone? No, doesn't work: 100,000 SEK/year to 10 million people would be 1,000 bn SEK/year 1,800 bn SEK/year - current total public spending

  10. The Model ”Negative Income Tax” The Basic Income is phased out when you make money yourself • 33% phased out benefit • 33% income tax • 33% in your pocket

  11. The Cost

  12. The Cost

  13. The Cost (Cost with100% welfare trap: 102 bn SEK)

  14. The Cost

  15. Cost: 132 bn SEK

  16. The Financing 11 bn SEK 17 bn SEK 64 bn SEK 50 bn SEK 142 bn SEK (Arbetsförmedlingen) • Social Assistance (socialbidrag) • Student aid (studiemedel) • Public Unemployment Agency • Unified VAT 25% • Total:

  17. The Financing But don't touch: • Sickness insurance (sjukförsäkringen) • Disability pensions (sjukersättning, aktivitetsersättning) • Child and family benefits (stöd till barnfamiljer) • Child allowance (barnbidrag) • Parental leave (föräldraledighet) • Other benefits for people with children

  18. Basic Income — Summary • 8,333 SEK/month (~900€) • to everyone 19-64 • living in Sweden • with no other income • 33% phasing out • Cost 132 bn SEK, financing 142 bn SEK • Replaces social assistance, student aid, and unemployment benefits. Unified VAT 25% • Disability pensions and family benefits unchanged

  19. christianengstrom.wordpress.com

  20. Basinkomst Vad kostar olika nivåer?

  21. Basinkomst Vad kostar olika marginaleffekter?(marginaleffekt = avtrappning + kommunalskatt)

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