{"insight":{"id":"116254301","lede":"The author's model finds that doing so would decrease macroeconomic aggregates, largely driven by a drop in labor supply in response to the higher tax rate.","slug":"funding-a-usd12-000-ubi-via-consumption-taxes-would-require-a-tax-rate-increase-o","title":"Funding a $12,000 UBI via consumption taxes would require a tax rate increase of 22%.","showTitleAsQuote":false,"epistemicStatus":"empirical","reports":[{"id":"19519421","title":"Basic Income","slug":"basic-income"}],"tags":[{"slug":"growth","name":"Growth","id":"23932836","lede":"

We define growth as the expansion of wealth in society; growth is about generating a "a bigger pie".

\n\n

Amidst debates over the merits of continued growth, we begin with the idea that all else equal, a society with growth, with more wealth, is preferable to one with less. Without growth, society becomes a zero-sum distributional game: anyone's gain is another's loss. Growth (all else equal) enables shared prosperity.

\n\n

But there is broad agreement that current measures of growth, such as GDP, are inadequate to the task of providing a suitable proxy to guide further growth. Whether devising improved measures that account for missing elements such as sustainability, equity, leisure time, or digital value, or constructing altogether new proxies (OECD's Better Life Index, for example), the conversation about how best to measure, and thus drive, equitable, regenerative, socially desirable growth is a rich field of debate.

\n","ledeExcerpt":"We define growth as the expansion of wealth in society; growth is about generating a \"a bigger pie\".\n\nAmidst debates over the merits of continued growth, we begin with the idea that *all else equal*, a society with growth, with more wealth, is preferable to one with less. Without growth, society becomes a zero-sum distributional game: anyone's gain is another's loss. Growth (all else equal) enables shared prosperity.\n\nBut there is broad agreement that current measures of growth, such as GDP, are inadequate to the task of providing a suitable proxy to guide further growth. Whether devising revised measures, such as Tyler Cowen's notion of wealth plus\" (GDP, plus measures of leisure time, household production, and environmental considerations), or constructing altogether new proxies (OECD's 'Better Life Index), the conversation about how best to measure, and thus drive, equitable, regenerative, socially desirable growth is a rich field of debate.","featured":true},{"slug":"consumption-taxes","name":"Consumption Taxes","id":"101079003","lede":"

Consumption taxes are taxes on spending on goods or services, such as a sales tax, or a value-added tax.

\n","ledeExcerpt":"Consumption taxes are taxes on spending on goods or services, such as a sales tax, or a value-added tax.","featured":null},{"slug":"taxes","name":"Taxes","id":"49378929","lede":"","ledeExcerpt":"","featured":null},{"slug":"pay-fors","name":"Pay-Fors","id":"99763897","lede":"

Public policies that require significant revenue often meet an important question: "how will you pay for that?" Pay-fors are potential sources of funding.

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While it should be noted that tax revenue does not actually fund government spending, pay-fors are important to manage inflation by offsetting government spending.

\n","ledeExcerpt":"Public policies that require significant revenue often meet an important question: \"how will you pay for that?\" Pay-fors are potential sources of funding.\n\nWhile it should be noted that tax revenue does not actually fund government spending, pay-fors are important to manage inflation by offsetting government spending.","featured":null}],"sources":[{"id":"23933528","lede":"The author constructs an econometric model of the US economy by developing an overlapping generations model with idiosyncratic income risk, inclusive of intensive and extensive margins of labor supply, on-the-job learning, and child-bearing costs. Using the model to conduct counterfactual analyses of replacing the US income-security system with a UBI, he finds that, inclusive of taxes to fund a $1,000/month UBI, macroeconomic aggregates decrease, but welfare increases.","link":"https://drive.google.com/file/d/15k7sJMNDVvvZJRF9SEi9gScBPw3u2AY_/view","slug":"the-macroeconomic-effects-of-ubi-programs","kind":"Academic Paper","title":"The Macroeconomic Effects of Universal Basic Income Programs","year":"2021-01-01","researchers":[{"id":"23933527","location":"","name":"André Victor Doherty Luduvice","seoDescription":"","slug":"andre-victor-doherty-luduvice"}]}]}}