Andrew Yang on the Late Show with Stephen Colbert

[Sherman A1]

[oldsoftie]

1. The "universal income" proposal would cost 3 TRILLION per YEAR. Our US budget is just over 4.

And even considering a VAT, which everyone SHOULD support, it still doesnt raise nearly enough money to fund this program. And thats not even factoring in the other programs being supported.
Once again, no realistic way to pay for these major programs, so the debt will continue to balloon.

[Sherman A1]

2. He has done the math to make the Freedom Dividend workout

https://www.yang2020.com/what-is-ubi/?_ga=2.202910097.1424036182.1561465590-2063135116.1561465590


How would we pay for Universal Basic Income?

It would be easier than you might think. Andrew proposes funding UBI by consolidating some welfare programs and implementing a Value-Added Tax (VAT) of 10%. Current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally – most would prefer cash with no restriction.

A Value-Added Tax (VAT) is a tax on the production of goods or services a business produces. It is a fair tax and it makes it much harder for large corporations, who are experts at hiding profits and income, to avoid paying their fair share. A VAT is nothing new. 160 out of 193 countries in the world already have a Value-Added Tax or something similar, including all of Europe which has an average VAT of 20 percent.

The means to pay for a Universal Basic Income will come from 4 sources:

1. Current spending. We currently spend between $500 and $600 billion a year on welfare programs, food stamps, disability and the like. This reduces the cost of Universal Basic Income because people already receiving benefits would have a choice but would be ineligible to receive the full $1,000 in addition to current benefits.

Additionally, we currently spend over one trillion dollars on health care, incarceration, homelessness services and the like. We would save $100 – 200+ billion as people would take better care of themselves and avoid the emergency room, jail, and the street and would generally be more functional. Universal Basic Income would pay for itself by helping people avoid our institutions, which is when our costs shoot up. Some studies have shown that $1 to a poor parent will result in as much as $7 in cost-savings and economic growth.

2. A VAT. Our economy is now incredibly vast at $19 trillion, up $4 trillion in the last 10 years alone. A VAT at half the European level would generate $800 billion in new revenue. A VAT will become more and more important as technology improves because you cannot collect income tax from robots or software.

3. New revenue. Putting money into the hands of American consumers would grow the economy. 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.

4. Taxes on top earners and pollution. By removing the Social Security cap, implementing a financial transactions tax, and ending the favorable tax treatment for capital gains/carried interest, we can decrease financial speculation while also funding the Freedom Dividend. We can add to that a carbon fee that will be partially dedicated to funding the Freedom Dividend, making up the remaining balance required to cover the cost of this program.

[oldsoftie]

3. The VAT is the only part that makes real money. Raising the SS cap should go to SS ONLY.

His first point is moot, since anyone already getting benefits would continue getting benefits, it would just come from a different "fund", so thats hardly a savings. If i'm getting 1,000 from welfare & i decide to forgo that to get the 1,000 income benefit, its still 1,000.

I've pushed for a sales tax for years, its the only proposal that may actually raise MORE than projected, because there is so much more untaxed income than people realize. And i'm all for doing away with the carried interest break regardless of where the funds go.

Factoring in savings from people taking better care of themselves is hilarious. We/the govt, have been pushing this for decades and people just do what they want. We're fatter now than ever before. Now if you tie benefits to checkups, you might have something. But do that and the howls of protest will be deafening.

Even assuming all those ideas work, it still doesnt add up to over 3 trillion dollars.

I'm still glad to see a Democrat propose a sales tax. We've needed one for years. Tax all that hidden money out there. And its not just "underground economy" like most people think

[Sherman A1]

4. I presented the various points from his website as you certainly noted

and the savings from people taking better care of themselves are not at all hilarious despite your dismissal of same. We will see better outcomes in a variety of areas such as reduced incarcerations, better circumstances for children and better health and mental health with a UBI as he indicates. Imagine the improvements in stress level of the working class that as we know has been squeezed for decades, with minimal wage increases who now will be able to afford a better car, some needed home repairs or the oft mentioned $500.00 unexpected bill that so many are currently unable to address.

Yes, $1000 is still $1000 but it will lessen welfare programs in many cases and create savings in those programs as people make the choices that they feel best for themselves. The UBI will go to every citizen as has been noted and is not welfare.

People will spend the money to do such mundane things as get the needed car repair, the trip to the hardware store, the night out and that will circulate through the local economies across the nation helping everyone along the way. Put money in the hands of the working people and it will trickle up.

The answers have been provided, if you choose to accept them or not that is your choice, but the math works.