A guaranteed minimum income is a proposed system of income redistribution that would give each citizen a certain sum of money independent of whether they work or not. It is sometimes known as a "Basic Income Guarantee (BIG)", "universal basic income", "citizen's income scheme", or just a basic income (the term "guaranteed annual income" is often used in the United States), but these systems also often include a method of paying for the income as well.

The system would be a government administered one that would allot every citizen a sum of money large enough to live on. A common amount proposed is 20% of per capita GDP. The wealthiest as well as the poorest citizens would receive this. Salaries from employment would be a supplement to this government income. An often proposed way of paying for this system is through a negative income tax where a government flat tax would be charged to all citizens. The current model of progressive income taxes used throughout the western world could be eliminated, but the system would still be progressive, since those at the lower end of the wage scale would pay less in taxes than they would receive in guaranteed income. For the most wealthy members of society the few thousand dollars of the guaranteed income would only make a small dent in the taxes they have to pay.

Arguments pro

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Proponents of a guaranteed minimum income argue that the system has a number of advantages:

• It would simplify the welfare state. The introduction of a guaranteed minimum income could also see the elimination of traditional welfare, the minimum wage, much of unemployment insurance, government pensions, and benefits for the disabled and ill. This would eliminate large amounts of government bureaucracy. It could also see the elimination of the progressive income tax with no adverse effects on the poor, as explained above.
• It would prevent any citizen from falling into abject poverty. With a guaranteed minimum income, poverty and homelessness would be all but eliminated.
• It would cure some of the major problems of the modern welfare state such as the welfare trap, that is assumed to discourage people from working.
• It would give enough money for every citizen to be able to receive a good education and proper healthcare.
• It would give each citizen the freedom to select jobs that are more pleasant (assuming they are available), thus potentially eliminating unpleasant tasks that the economy would thus be forced to automate.
• It would allow citizens to do work that is productive but cannot provide income, such as caring for children or the elderly within one's own family, or providing public goods.
• It would place no ceiling on income (thus preserving incentive) but would create a solid income floor below which no one could fall.
• It would act as an indirect subsidy to employers by allowing a reduction in the wage bill (which would in turn balance any increase in taxation required to finance it).
• It would increase the employment rate.

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Steven Shafarman "Strong signs of real progress toward a basic income in the United States." http://tinyurl.com/ye2o3mg
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Steven Shafarman "Strong signs of real progress toward a basic income in the United States." http://tinyurl.com/ye2o3mg
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