How can we make it possible for everyone in the world to receive a basic income of $3000 per month? What is currently missing to achieve this in a decentralized way? What is currently missing in the world to make it possible for people to work because they want to, rather than working to make a living?

If Elon musk is in charge of cutting costs and he's also making robots maybe he takes over the means of production and fully automates all the jobs and no one has to work anymore then obviously they need to feed people trump already showed pride in sending the stimmy checks when obviously people needed to eat so when it becomes obvious again he will do it again

I ran some numbers for Ontario with some oversimplifications and wanted to ask people if this seems remotely possible.

$15,000 UBI -$15,000 federal exemption * 0.15=$2,250 -$11,865 provincial exemption * 0.0505=$599

This is an underestimate of costs because the personal exemption is non-refundable and some people don’t earn enough to reach it.

Net UBI $12,151

Assume all people over 65 have enough CPP/OAS/etc to deduct the $12,151.

Working age population (18-64) is 65.6% of 15.71 million which is 10.3 million.

So underestimate of cost is $125.155 billion. Generously assume we get 33% back in tax so net cost is $83.75 billion.

Cut ODSP and Welfare to $0 getting $13.8 billion in reductions for net cost of $69.95 billion. Note: this is a loss in income for some people as ODSP pays more than $12,151 per year and is not taxable. Welfare is also not taxable and often pays higher than that number as well. If you want to make UBI at least neutral for all people you would have to cut a smaller percentage of these programs. Cut first $12,151 of EI which we will generously assume is 40% of all EI payments. Gross benefit paid in EI Federally is $11.35 billion. Portion in Ontario can be overestimated as 15.71/42.0 37.4% so get back $1.7 billion in EI. That lowers cost to $68.15 billion. You probably have to fund this amount through tax increases or cuts that aren’t offset by UBI.

Ontario currently has $44.2 billion in income tax revenue and $136.5 billion in all tax revenue. A proportionate increase to pay for $68.15 billion would involve a 50% increase in all taxes. This would mean the provincial portion of GST would increase from 8% to 12% and the new income tax rates would be: 7.575% bottom bracket 13.725% next bracket 16.74% middle bracket 18.24% second highest bracket 19.5% top bracket

Combining with a top bracket rate of 33% federally top income would be taxed at 52.5% without including CPP or EI.

Ontario Corporate Tax Rates would increase from 11.5% to 17.25%. The small business corporate tax rate would increase from 3.2% to 4.8%. The federal rate is 9% with the small business deduction, 15% with the general tax reduction, 28% after abatement and 38% if Part I tax applies. This means corporate tax rates would range from 13.8% to 47% overall. In every category rates would have increased.

Lastly, increasing the cost of things reduces demand so we’d expect to see a decrease in total labour (dollars earned) from the income tax increase and a decrease in total goods sold from the GST increase. Those decreases in revenue are somewhat hard to estimate and would be paid for by increasing the deficit.

Note that with the increase in bottom bracket taxation and the removal of the personal exemption an individual making $51,446 after UBI of $15,000 would pay an additional $1322.67 and $757.5 in provincial tax and an additional $2,250 in Federal Tax while also losing exemptions of $2,250 and $559. This means someone making $36,446 salary and UBI would end up only $7,860 better off (less additional GST paid). The estimate for additional GST paid is $585 + $617.35 for a total of $1202.35 so this person would end up roughly $6657 better off.

A person making $102,894 ($87,894 + UBI) would pay an additional $2473.78 in taxes on top of all the extra taxes from the previous bracket and would be $5,416.22 better off less additional GST paid. Assuming 30% of income gets spent on GST purchases that would be an additional $1234.73 in HST from the 4% increase and an additional $585 from HST on the $15,000 in UBI. So this person would net out at approximately $3,596.49 better off.

A person making $150,000 ($135k before UBI) would pay an additional $2628.51 in tax on the last bracket of the income. They would also pay an additional $565.27 in HST. This person would be approximately $403 better off.

A person making $220,000 ($205k before UBI) would pay an additional $4256 in income taxes on their last bracket and an additional $840 in sales tax hikes on that last bracket income. They would be approximately $4693 worse off.

A person making $1 million ($985k before UBI) would pay an additional $50,700 on top bracket taxes. They would pay an estimated $9,360 more in HST for top bracket income. They would be approximately $64,753 worse off.

These numbers obviously get worse if you remove the deficit component and also get worse if higher corporate taxes leads to job loss or reduced economic growth.

I wanted to know if I’m missing anything because I think getting a 50% increase to all taxes passed is a pipe dream. Are there some offsetting costs I’m not thinking of?