Yes, there’s strong arguments to prefer a UBI to NIT. But one thing that speaks in favour of NTI, is that a UBI would demand higher tax rates to collect the funds that are then distributed. Even those that are compensated for their taxes by the UBI and have the same net income as before, will face a higher marginal tax rate, with all the disincentives that causes.
Yes, there’s strong arguments to prefer a UBI to NIT. But one thing that speaks in favour of NTI, is that a UBI would demand higher tax rates to collect the funds that are then distributed. Even those that are compensated for their taxes by the UBI and have the same net income as before, will face a higher marginal tax rate, with all the disincentives that causes.
Okay, started listening and hear that you address the incentive issue early on.