I studied at a German university where one of the prominent advocates for universal basic income, Götz Werner (the owner of a well-known German health and beauty retail chain), gave several talks. As a member of a student club, I participated in a smaller event with him, which allowed for plenty of questions and interaction. At that time, the concept of universal basic income wasn’t particularly associated with left-wing politics.
To summarize: Universal basic income can be seen as a kind of negative poll tax (a poll tax being a fixed tax per person). Werner argued that the current tax system is unsustainable because it places a disproportionate burden on labor. He suggested that instead of taxing income, we should tax consumption—essentially, by significantly increasing sales tax and eliminating income tax. Of course, this would make life unaffordable for low earners, so a negative poll tax (i.e., a basic income) would be necessary to make higher sales taxes socially acceptable.
In practice, a large portion of the universal basic income would end up returning to the state through sales tax anyway.
Even back in 2010, I sensed that Mr. Werner was promoting a system that would benefit his own financial interests. As an employer with high labor costs, he would gain from lower taxes and fees associated with employment in Germany. And, as a wealthy individual, only a small part of his wealth would be subject to sales tax, since he wouldn’t need to spend most of it on taxable purchases.
When pressed about numbers (how high the sales tax, how high the negative poll tax) he just wouldn't discuss numbers saying society would have to figure it out and potentially one might start out with some amount and then progressively increase the negative poll tax, increase the sales tax and decrease other taxes. It really felt like someone not having done any actual simulations / calculations.
oh and one thing he really emphasized is, that UBI could allow for people to go from like a 40h work week to a 30h work week being employed and use their fridays for example to become entrepreneurs/artists/etc. That really felt like as close to prosperity gospel as one can get in germany.
Trump was inspired by a similar consumption tax based on tarrifs and he oft cited the days before income tax. He was expecting Congress to provide an income tax relief package to compensate.
To summarize: Universal basic income can be seen as a kind of negative poll tax (a poll tax being a fixed tax per person). Werner argued that the current tax system is unsustainable because it places a disproportionate burden on labor. He suggested that instead of taxing income, we should tax consumption—essentially, by significantly increasing sales tax and eliminating income tax. Of course, this would make life unaffordable for low earners, so a negative poll tax (i.e., a basic income) would be necessary to make higher sales taxes socially acceptable.
In practice, a large portion of the universal basic income would end up returning to the state through sales tax anyway.
Even back in 2010, I sensed that Mr. Werner was promoting a system that would benefit his own financial interests. As an employer with high labor costs, he would gain from lower taxes and fees associated with employment in Germany. And, as a wealthy individual, only a small part of his wealth would be subject to sales tax, since he wouldn’t need to spend most of it on taxable purchases.
When pressed about numbers (how high the sales tax, how high the negative poll tax) he just wouldn't discuss numbers saying society would have to figure it out and potentially one might start out with some amount and then progressively increase the negative poll tax, increase the sales tax and decrease other taxes. It really felt like someone not having done any actual simulations / calculations.
oh and one thing he really emphasized is, that UBI could allow for people to go from like a 40h work week to a 30h work week being employed and use their fridays for example to become entrepreneurs/artists/etc. That really felt like as close to prosperity gospel as one can get in germany.