© Reuters. Ireland analyzes the advantages and disadvantages of universal basic income
Dublin, 20 Dec (.).- The introduction of a universal basic income in Ireland would have positive effects for the most disadvantaged, even if its application would cost up to 50,000 million euros a year for the public coffers, according to a study Tuesday by the Institute for Social and Economic Research (ESRI).
The analysis by this Irish think tank addresses the advantages and disadvantages of this system, which would give each person an unconditional income of around €300 a week, regardless of circumstances.
Drawing on evidence from pilot programs in other countries, ESRI noted that a universal basic income (UBI) could remove the “stigma associated” with welfare dependency while reducing “the administrative complexity” of the current welfare system.
It would also prevent some aid recipients from turning down jobs for fear of missing out on supplemental social security payments, while giving others “financial independence” to leave “precarious” and “abusive” jobs to explore other opportunities.
On the contrary, the study recalled that the introduction of the RUB would force the authorities to make profound changes in the tax and social security system.
“Previous work in Ireland in the late 1990s indicated that a flat income tax rate of 50-60% would be needed to fund a universal basic income,” notes ESRI’s report.
Similarly, more recent studies suggest that income tax for the bottom bracket should be raised from the current 20% to 40%.
“In general, people at the top of the income distribution would lose, while those on lower incomes would gain,” said report author Paul Redmond today.
The expert stressed that these “drastic changes” in the tax and benefit system could benefit “many people with low wages”, but, at the same time, could harm “a large part of low- and middle-income families”.
