Income guarantees effectively convert personal tax deductions into a universal credit.

"...The plans range in gross cost from $720 billion to $1 trillion, yet the baseline tax reform would offset these costs by eliminating about $600 billion in redundant tax code that serves a similar purpose as an income guarantee. That is, personal deductions exist primarily to protect a certain portion of income from tax liability to ensure families have a foundation of livable income that is safe from taxation. The income guarantee programs would essentially democratize these personal deductions or credits into the form of a cash transfer, while all other earnings and income is immediately subject to federal income tax."