Instituting an annual UBI would create an enhanced stabilized economic boom unlike anything we’ve ever experienced before UBI.
Instituting a UBI will set record increases for the Consumer Price Index and Producer Price Index. Remember, the great majority of U.S. GPD is mostly a direct result of consumer spending – so guess what happens when you increase consumer spending? The rising tide does indeed rise all boats. Instead of money never trickling down from the 1%, annual UBI will guarantee the free flow of money circulating thoughout our economic system.
HOW DO WE PAY FOR UBI?
We pay for UBI by stop borrowing from the damn Federal Reserve! There’s no need to borrow anything from anyone since our Congress has the constitutional authority to direct deposit unlimited currency into U.S. gov’t bank accounts…….we’ve been lied to for so long….your favorite Congressperson has been lying to you telling you our gov’t operates like a household budget with limited funds…….
We pay for UBI by appropriately taxing mega-corporations and Congress direct deposting currency into our U.S. government bank accounts at the U.S. Treasury Dept.
Congress should pass an annual U.S. expense account bill to pay for UBI and additional government programs. Since this money is NOT borrowed from anyone, this money can be spent as an expense of We The People.
When I say “appropriately taxing corporations,” I’m talking about taxing large corporations with assets of at least $500 million a 50% corporate tax. I’m talking about we can completely eliminate imposing federal taxes on small businesses and the middle class and poor, by imposing a 50% corporate tax and by Congress direct depositing currency into the Treasury Dept.
There is simply no need to impose a federal income tax on the middle class, poor and small businesses to pay for federal programs which can be paid for taxing large corporations and depositing currency directly into U.S. gov’t bank accounts at the Treasury Dept.
The best and only arguments the bi-partisan Congressional crimewave can produce against instituting a UBI is 1) Inflationary concerns; 2) workers won’t go to work if they receive a monthly $2,000 UBI guaranteed income. THESE ARGUMENTS ARE SIMPLY NOT TRUE.
First of all, let’s address the rube of “inflationary concerns.” Did you notice Republicans never bring up inflationary concerns when they award themselves with multi-trillion tax cuts which are not spent by the wealthy but hoarded by the wealthy? No sir, not a word about inflation during the wealthy tax cut bill-making process. BUT, let Democrats even breathe the term “UBI” and suddenly Republicans claim great balls of inflation will drop from the sky killing us all.
Inflation is when the demand for products and services outstrip the ability of producers to produce good sand services, theoretically increasing the costs of goods and services.
America 2021 does NOT have a problem producing goods and services. The only threat of inflation comes from borrowing money from the Federal Reserve: the Federal Reserve can raise interest rates at will, and they’re not even elected officials. Again, there can be no inflation as long as we do not depend upon or borrow more money from the Federal Reserve. This is not the seventies; America has no production problem.
Secondly, Republican politicians make the farsical claim if our gov’t gives everyone a $2,000 a month UBI, no one will go to work. This is simply NOT TRUE. What is true is conservative business owners don’t want ANY FORCE causing them to offer a decent wage for their employees; instituting a $2k UBI would force employers to offer significant wages for their employees.
Conservatives like Ted Cruz and Josh Hawley believe their opposition to minimum wage increases is what is driving Americans to get up and go to work in the morning. Their arrogance and indifference knows no known boundary.
Small business owners must realize they must pay a decent wage or do not expect to be in business. In our capitalist society, some other business operator will take up the slack by offering decent wages to workers. This economic Darwinism will tend to weed out unscrupulous small business owners. Eliminating federal income tax for small business owners should helpful to small business owners.
One day, even the poorest Americans will realize they deserve a piece of the great American Experience – but when will Congress realize even the poorest amongst us deserve a minimum standard of care in the self-described, “Greatest, Richest, Most Powerful Nation on Earth!”
$2,000 per month x 12 months = $24,000 a year multiplied by 300 million Americans = $7.5 trillion.
A monthly UBI of $2,000 per month would provide economic stability on many levels: such guaranteed income would provide the constant stream of demand necessary to significantly drive sales, orders, small business owner profits. $2k UBI would provide greater housing and food security so badly needed in this country. $2k UBI could mean life or death for many Americans, the people “out-of-the-loop” in a never-ending cycle of poverty and many times undiagnosed mental illness. We could virtually end homelessness in America with a $2k UBI. And this $2k UBI shall be penalty-free from the IRS and any other gov’t agency.
The road to “Economic Justice” runs through understanding and realizing how our government operates, especially in regard to HOW our government funds the bills our Congress writes and passes.
Once you understand how our government funds our government, once you understand all federal taxes do not fund our government; nor do federal taxes come close to funding our government, then one may understand why there is enough money to fund the needs of We The People.
When Congress passes a bill it is sent to the U.S. Treasury Dept. who literally “orders” the Federal Reserve to deposit the funds set forth in the bill into the U.S. Gov’t bank account over at the U.S. Treasury Dept. The Federal Reserve Chairman literally sits at his computer and adds zeros to a U.S. government bank account. Yes, martha, the Federal Reserve creates money out of thin air with a few keystrokes.
We could fully fund the needs of the people by simply raising the top marginal corporate tax rate significantly, ala the fifties and sixties; and if that’s not enough funding, Congress could issue several trillion dollar coins of denomination and deposit those coins DIRECTLY into a U.S. Gov’t bank account at the U.S. Treasury Dept., thereby BYPASSING the Federal Reserve and BYPASSING increasing the national debt.
Congress has federally subsidized too many trillions of dollars in war machines, in prosecuting the War on Terror, in subsidizing multi-national, multi-billion dollar conglomerates instead of investing in We The People and our public infrastructure. It’s way past time for We The People to invest in We The People.
The best-kept secret in Washington is the secret in Plain Sight.
To quote Alan Greenspan, former Federal Reserve Chairman from 1987 until 2006, said:
I recommend instituting a UBI-FOR-ALL and federally-backed forgivable home loans.
It’s way past time for our Congress to fund WE THE PEOPLE instead of CREATING MONEY OUT OF THIN AIR ONLY TO GIVE IT ALL DIRECTLY TO GIANT CORPORATIONS, SPECIAL INTERESTS and the Great War Machine. It’s nothing short of obscene how our Congress has traditionally and faithfully subsidized BIG OIL AND GAS COMPANIES, THE BANKING INDUSTRY AND WALL ST. to the tune of trillions of dollars BUT HOW DARE YOU ASK FOR MONEY FOR THE PEOPLE!
In 2008, I didn’t hear anyone worrying about inflation when Obama issued blank checks to Wall St. and the banks!
If Congress doesn’t see the People’s need for guaranteed income and home ownership then we have the wrong Congress.
It’s no coincidence that the warmongers always fund the war machine. But the warmongers OPPOSE funding We The People, the way they shamefully funded F-35 fighter jets for years and years despite MASSIVE cost overruns and the fact the damn plane can’t fly at night or in a storm.
So how do we fund a UBI-FOR-ALL and home loans-for-all?
By Congress exercising Congress’ right to create money out of thin air.
It’s what Congress does and has been doing since the inception of the United States of America.
What About Inflation? Won’t Issuing More Money Devalue Our Dollar?
No. As long as we institute laws proscribing inflationary price increases, we can maintain a good economic equilibrium.
For contemporary examples of governments injecting new money to fund domestic growth, we can look to China and Japan. In the last two decades, China’s M2 money supply grew from 11 trillion yuan to 194 trillion yuan, a nearly 1,800% increase. Yet the average inflation rate of its Consumer Price Index hovered between 2% and 3% during that period. The flood of money injected into the economy did not trigger an inflationary crisis because China’s GDP grew at the same fast clip, allowing supply and demand to rise together. Another factor was the Chinese propensity to save. As incomes went up, the percent of income spent on goods and services went down.
In Japan, the massive stimulus programs called “Abenomics” have been funded through bond purchases by the Japanese central bank. The Bank of Japan has now “monetized” nearly half the government’s debt, injecting new money into the economy by purchasing government bonds with yen created on the bank’s books. If the US Fed did that, it would own $12 trillion in US government bonds, over three times the $3.6 trillion in Treasury debt it holds now. Yet Japan’s inflation rate remains stubbornly below the BOJ’s 2% target. Deflation continues to be a greater concern in Japan than inflation, despite unprecedented debt monetization by its central bank.
Joe Biden, Mitch McConnell and Donald Trump all share and espouse the notion if our government provided universal basic income-for-all — it will discourage people from working.
Biden, Trump and McConnell all three drink from the Master’s Cup and are very comfortable foisting the old Master-Slave relationship on the working class and poor.
These old guys are so tone-deaf they are not aware or don’t care they are insulting Americans by falsely claiming more income for Americans would stop them from working.
They believe only the wealthy can handle increased financial gain without sacrificing moral ground. What a crock!
Another criticism is that basic income-for-all would cause massive inflation.
NOTHING COULD BE FURTHER FROM THE TRUTH.
Webster’s Dictionary defines “inflation” as, “…a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.”
That’s a highly-processed way of saying greed will drive merchants to raise prices as the greedy overreact to increased consumer purchasing power.
The definition of inflation pre-supposes a shortage of available goods and services. This definition may have applied decades ago but certainly does not apply today in America 2021.
In fact, the current cost-of-living is so high above wages in 2021 that instituting a $2,000 monthly UBI would tend to help level the economic playing field for the middle class and poor.
There’s not one damn reason our Congress cannot pass a bill guaranteeeing a Basic Income-For-All along with federally-backed forgivable home loans, OTHER THAN INSTITUTIONALIZED RACISM/CLASSISM.
America is woke! America is finding out their Congressperson has been lying to them their entire lives, each time a Congressperson claims “there’s not enough money” for whatever it is you want to do. Realizing our government does not operate on a finite amount of money (as a household budget operates) is key to understanding the problem for working class and poor Americans is not IF there’s enough money, but WHO CONTROLS THE MONEY.
FUNDING PROGRAMS-FOR-ALL in the 21st Century:
Congresswoman Rashida Tlaib set forth her recommendation for funding:
c. The mechanics of this funding approach would be as follows:
• The Treasury Secretary would direct the U.S. Mint to issue two $1 trillion platinum coins, under the legal authority provided by 31 U.S.C. § 5112(k).
• Congress would direct the Federal Reserve to purchase the newly issued coins at full face value.
• The Federal Reserve would complete the purchase by crediting the U.S. Mint’s account at the Fed with $2 trillion in reserves.
• The Fed would retain ownership over the two $1 trillion coins permanently in order to ensure its own balance sheet remains fully capitalized by the Treasury.
• The Treasury Secretary would “sweep” the newly created reserve funds from the Mint’s account into the regular Treasury General Account.
• The Treasury would make the funds available to the Bureau of the Fiscal Service to disperse to every person in America in the form of pre-paid U.S. Debit Cards.
d. This approach would preserve the historical separation between fiscal and monetary policy and avoid financial entanglement between the Treasury and the Federal Reserve which would
eventually undermine the independence of the Fed.
In the long term, card infrastructure should be converted into a permanent, Treasury-administered digital public currency wallet system, to serve as a privacy-respecting “eCash” compliment to universal Fed Accounts and/or Postal Bank Accounts for All. This proposal should be accompanied by progressive tax reform to ensure that emergency relief provisioning does not exacerbate income or wealth inequality in the long-term.
Reported Income Increased and Taxes Paid Decreased in 2016
Taxpayers reported $10.2 trillion in adjusted gross income (AGI) on 140.9 million tax returns in 2016. Total AGI grew $14 billion from 2015 levels, less than the $434 billion increase from 2014 to 2015. There were 316,000 fewer tax returns filed in 2016 than in 2015, meaning that average AGI rose by $260 per return, or 0.4 percent.
Taxes paid fell slightly to $1.4 trillion for all taxpayers in 2016, a 0.8 percent decrease from the previous year. The average individual income tax rate for all taxpayers fell slightly, from 14.3 percent to 14.2 percent, and the average tax rate fell for all groups.
The share of income tax burden for the top 1 percent fell slightly as well, from 39 percent in 2015 to 37.3 percent in 2016.
In 2016, the bottom 50 percent of taxpayers (those with AGI below $40,078) earned 11.6 percent of total AGI. This group of taxpayers paid $43.9 billion in taxes, or roughly 3 percent of all income taxes in 2016.
In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $480,804 and above), earned 19.7 percent of all AGI in 2016, and paid 37.3 percent of all federal income taxes.
Half of American taxpayers earn less than $40,000 per year. I believe we do not need those earning less than $40,000 a year to pay $44 billion in federal taxes in order for our government to operate smoothly as needed.
The benefit of completely eliminating federal income taxes for the middle class/poor is astounding beyond the obvious benefit of increasing demand.
The benefit of completely eliminating federal income taxes for small businesses creates more economic opportunity by increasing the employer’s ability to offer a living wage to workers.