author

Philip Harvey

Rutgers University

A NIT designed to eliminate poverty (in 2002) with a minimum payment of $9,359 that reduces by 25.6% per dollar earned is estimated to have costed $1.09 trillion. UBI and NIT can have identical redistributive effects. The level of taxation required to fund a UBI is roughly double the amount for an equivalent NIT. It's unclear that a basic income guarantee is the best use of society's redistributive capacity. The net cost of a $12k/yr UBI to all adults is estimated at $1.69 trillion per year.
The Relative Costs of a UBI and a NIT
Basic Income
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