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Subject:  Re: Gabbard Calls Out Hillary Date:  10/21/2019  11:08 PM
Author:  tjscott0 Number:  882723 of 883336

re Yang's freedom dividend.
The dividend replaces social programs. All federal social programs would be eliminated such as food stamps. Of course social security, medicare & VA benefits remain as is. The people administering those eliminated programs are gone too.
Per income people will be paying income tax on their benefit.

Now additional taxes:
A 10 percent value added tax
0.1 percent, $50 billion per year financial transaction tax (FTT)
A $20 per ton carbon tax
Lifting the cap on Social Security contributions
Treating capital gains as ordinary income
The new tax revenue raises $1.2 trillion, leaving the total unfunded cost at $1.4 trillion. This grows the deficit by 160 percent over the $896 billion projected by the Congressional Budget Office for 2019.
The UBI page of Yang’s website states that “The Roosevelt Institute projected that the economy would grow by approximately $2.5 trillion and create 4.6 million new jobs. This would generate approximately $800–900 billion in new revenue from economic growth and activity.”
Given the US raises 27 cents per dollar of GDP, this $2.4 trillion would raise about $650 billion in new tax revenue, though this might be higher given the new taxes.

Of course implementation would be disruptive to the economy as we really don't how such a benefit would affect the economy. Personally if one wants to help the working poor; why not just rise the Earned Income Tax Credit. The EITC encourages work since the credit is only available to those with earned income.
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