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A concrete and financed proposal. Basic Income. Christian Engström. christianengstrom.wordpress.com. Basic Income. Is it possible?. Basic Income. Is it possible? Yes, obviously! We already have basic income (sort of). The Problem. Social Assitance (socialbidrag)
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A concrete and financed proposal Basic Income Christian Engström
Basic Income Is it possible?
Basic Income Is it possible? Yes, obviously! We already have basic income (sort of)
The Problem Social Assitance (socialbidrag) — the jaws of the welfare trap • Means tested • Arbitrary • Insecure • Degrading • Totally destitute • 100% marginal effect
The Problem The Employment Agency(Arbetsförmedlingen) does not give people employment Unemployment benefits: • Income related • Time limited • Tied to activities • Bureaucratic maze
The Model Goal: To find a model for Basic Income that is - Economically realistic - Politically realistic
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
Money for nothing to everyone? No, doesn't work: 100,000 SEK/year to 10 million people would be 1,000 bn SEK/year 900 bn SEK/year – total government budget 1,800 bn SEK/year – total public spending
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
The Cost (Cost with100% welfare trap: 102 bn SEK)
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 Employment Agency • Unified VAT 25% • Total:
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
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
Basinkomst Vad kostar olika nivåer?
Basinkomst Vad kostar olika marginaleffekter?(marginaleffekt = avtrappning + kommunalskatt)