Does the universal basic income work
The calculation seems simple: if 83 million people in Germany receive a basic income of e.g. 1,000 euros a month, that costs us just under a trillion euros a year, three times the federal budget. So the basic income cannot be financed, right? Not true, because this frequently made calculation is completely wrong.
First things first: that a There is no basic income concept, there are dozens of financing models. They all have one thing in common: At the beginning of the month, everyone receives a fixed amount on their account - but at the same time contributes to the financing of this amount through taxes as far as possible. The difference between the basic income and the tax burden decides whether someone in a society with a basic income has more or less money in his pocket.
Depending on the financing model, people with low incomes have more money at their disposal, the so-called middle class about the same and the richest a little less than before.
Most people today already have some kind of basic income: Hartz IV plus health insurance contribution and rental cost coverage is also around 1,000 euros - but it is not unconditional, but causes demotivation, existential fear and mistrust.
Higher earners also already receive a kind of basic income in the form of the income tax allowance, i.e. the lower part of the income that does not have to be taxed.
The basic income is essentially a tax reform that replaces this allowance with the same amount of money being paid out at the beginning of the month. Neither the state nor us citizens incur additional costs - but the advance payment creates new trust, security and room for maneuver. The money is already there, it just doesn't work that well.
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