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Non-Tech : Kirk's Market Thoughts
COHR 148.89-1.8%3:59 PM EST

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To: Glenn Petersen who wrote (4849)6/12/2017 4:09:44 PM
From: Kirk ©  Read Replies (1) of 26622
 
One big problem with this:
A modified targeted basic income could be paid directly to those individuals who require assistance. Those payments could serve as a substitute for the myriad of means-tested programs currently in place. You would eliminate the cost of the paternalistic government bureaucrats overseeing most of the programs and give the recipients the dignity that comes from the ability to prioritize those needs that are most important to them. It could be cost neutral. You could also structure the program to provide incentives to the recipients to seek employment, either by not penalizing them for earning additional income or at least not reducing their basic income on a dollar-for-dollar basis as their earnings increase.

Is when you are low income, you do a calculation on if the incremental amount of work is a good return.

Consider being a 60 yr old, self employed worker shining shoes and making $25K a year and getting $700 a month from ACA that vanishes if you double your income to $50K a year. Not only do you jump in State and Fed tax brackets AND have to pay the payroll tax on both sides, but you lose that ACA subsidy. There are probably many other subsidies like PG&E's and water company lower rates for low income plus free phones....

So double the number of shoes you shine and take home less than 50% of the extra revenue.... and you might decide it is better to drink beer or windsurf.
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