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Originally Posted by GGG
UBI isn’t that expensive if you go back into the last thread ion UBI we hashed out the cost. Essentially if Canada cut CPP, OAS,EI, Child benefits, lost taxation due to rrsp’s and TFSAs and spent the same % of GDP publicly as Sweden we could afford it.
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Cancelling CPP would take extraordinary political courage. It’s a dedicated, solvent retirement fund, managed at arms length. To dissolve its holdings and roll them into a general UBI program would be a serious breach of the principles under which it was set up and run. It would provoke a blizzard of legal challenges.
Quote:
Originally Posted by GGG
This assumes that we don’t destroy the tax base because professionals decide to retire at 40. I’m much more concerned about that problem then the current economy being able to support a UBI.
2k per month would be about 720 billion or about 1/3rd of GDP, but since you are just transferring this money it really should have limited economic drag and in fact taking money from the wealthy and giving to consumers probably works like stimulus.
I think the whole thing blows up because a 60%-75% marginal tax rate for the top bracket along with 40k a per year retirement fund would lead many to work a lot less years. Once you have a house paid off you’d retire.
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And at the other end, I expect we’d see youth unemployment skyrocket. If you’re 26 and living at home with your parents, $2k a month is plenty to cover your needs. Why take a job as a server on weekends and evenings making $2.5k when you can get by just fine not working at all?