Andrew Yang's Freedom Dividend (Universal Basic Income)

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Lucky C
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Andrew Yang's Freedom Dividend (Universal Basic Income)

Post by Lucky C » Mon Jul 01, 2019 7:41 am

I'm surprised that this apparently hasn't been a topic yet, but Andrew Yang is proposing $12k/year/person in universal basic income that he calls a Freedom Dividend. So basically if he was actually able to make this happen, anyone living at the Mustachian level or leaner would be able to quit immediately, if they were comfortable with the stability of the law and the amount of assets they had set aside for a rainy day or other projects. Based on a safe withdrawal rate of 3%, if you were guaranteed this $12k/year that would be like getting $400k closer to your FIRE goal times every member of your household over 18!

Another proposal that has a much more likely chance of happening is Kamala Harris's tax credit of up to $6k per year per household. I haven't noticed people talking about this much because it wouldn't be too meaningful for the average family, but it would be a significant FIRE boost. I don't know the details but I imagine it would be $6k for a married couple under a certain income level, on top of existing tax credits. So this would be the equivalent of being $200k closer to FIRE at a 3% withdrawal rate, or for singles probably $3k/year or $100k.

I've already met my FIRE goals, so I would not be tempted to have these proposals, however unlikely they are to pass, influence my vote for president. I suspect that these policies could be more detrimental than beneficial as we are not yet (and probably never will be) living in a techno-utopia where universal basic income would work, but I have not done enough research to be confident either way.

The question for those who plan on voting Not-Trump and who have a long way to go to reach FIRE: will these proposals influence your voting at all? I imagine if I hated my job and still had $200k+ to go to reach FIRE, I would be tempted to selfishly vote for Yang or Harris for these reasons. Even in my position where I don't really need more "free money", I find myself happy that Harris is doing pretty well simply because a $6k tax credit would put us at 0% withdrawal with our current part time income.

jacob
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Re: Andrew Yang's Freedom Dividend (Universal Basic Income)

Post by jacob » Mon Jul 01, 2019 7:48 am

Lucky C wrote:
Mon Jul 01, 2019 7:41 am
I'm surprised that this apparently hasn't been a topic yet, but Andrew Yang is proposing $12k/year/person in universal basic income that he calls a Freedom Dividend.
viewtopic.php?f=20&t=3653 (326 posts and counting ...)

Optimal_Solution
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Re: Andrew Yang's Freedom Dividend (Universal Basic Income)

Post by Optimal_Solution » Mon Jul 01, 2019 8:54 am

I expect to "retire" in the next year or two so I would personally benefit from some sort of UBI while not having to pay for it via income taxes. But I certainly would not vote in favor of it because I am philosophically opposed to it. I think it would adversely distort market incentives, increase dependency on the government, and centralize more power into government hands to be misused by present or future politicians.

EdithKeeler
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Re: Andrew Yang's Freedom Dividend (Universal Basic Income)

Post by EdithKeeler » Mon Jul 01, 2019 11:21 am

As a person on the verge of retirement, I say “cool!”

As a person who is working and makes good money, I say “boo,” because the $$ has to come from somewhere, and some of it will come out of my paycheck in the form of taxes.

I think before UBI is implemented, we need to do something about our health care system. I think at the end of the day, rejiggering our health care/health insurance system will ultimately pay for itself between what we pay for premiums, profits to insurers, salaries for administrators, write offs for the poor, etc. But it’s a political hot potato.

After that, we need to shore up social security, which is easy enough to do (except politically!!) by increasing the cap on income for high earners, and maybe by raising FRA by a year or two.

I think once those are done, then maybe we talk about UBI. The first two are much more pressing issues, imho.

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