The Universal Basic Income

should it replace the existing social security system?

  • Robert Stephens

Abstract

A universal basic income (UBI) would provide all citizens with a guaranteed income, irrespective of their earnings, age or household status. It would be financed from a flat-rate personal income tax. It would replace the existing work-based social security system with its plethora of benefit types, abatement rates and eligibility rules. However, when the trade-offs between the competing objectives of a tax/benefit scheme are considered, and the variety of individual and family circumstances that need to be addressed, the apparent simplicity of a UBI quickly disappears. The article shows that while the current tax/benefit system represents a ‘welfare mess’, and needs substantial restructuring, a UBI does not necessarily provide an adequate income for poverty relief, nor ensure labour force incentives, at an acceptable fiscal cost.

Published
2019-02-22
How to Cite
STEPHENS, Robert. The Universal Basic Income. Policy Quarterly, [S.l.], v. 15, n. 1, feb. 2019. ISSN 2324-1101. Available at: <https://ojs.victoria.ac.nz/pq/article/view/5293>. Date accessed: 18 sep. 2019. doi: https://doi.org/10.26686/pq.v15i1.5293.