Dont forget that with a UBI system, it is not simply that everybody is $12k better off. It needs to be arranged against tax reform so that there is an income level which stays the same. Below that level, you would be better off. Above that level worse.
I'm not using actual proposed values, just an example. Lets choose $100k as the pivot point.
So person earning that currently pays $30k tax, meaning they get take-home of $70k. The new system means they get $12k UBI and tax needs to leave them $48k so they stay at the same salary level. They now pay $52k tax.
That means 52% tax rate, across the board.
The guy who previously earned $20k and paid $2k tax had a take home of $18k. He gets $12k UBI. Now he pays 52% tax on the $20k, so $10.4k. His take home is now $21.6k.
The closer you get to the floor, the better security there is. You can live on the $12k but you are not rich, and nobody goes without.
The $1m high earner should have paid $400k in tax but actually paid $100k because he pays $20k to an accountant. He now gets $12k UBI and pays $520k in tax because income tax rate is flat and the accountant needs to find another way to earn a crust, though he gets UBI, so..
This highlights a similar issue I have with student-loan payments as a government worker. I find a system where people pay money to the government only for the government to turn around and pay some of that money back to the same people unnecessarily convoluted.
It'd be more practical to net the $12k in UBI against each person's tax liability. If one owes more than $12k in taxes, then he or she pays the difference. If one owes less than $12k, then the government pays out the difference.
You don't even need it to be that complicated. Just send everyone a check for $1000 every month and then taxes can be collected with a flat rate at the point of sale without needing individuals to even file a tax return. The checks create a progressive rate curve even with a uniform marginal tax rate.
I'm not using actual proposed values, just an example. Lets choose $100k as the pivot point.
So person earning that currently pays $30k tax, meaning they get take-home of $70k. The new system means they get $12k UBI and tax needs to leave them $48k so they stay at the same salary level. They now pay $52k tax.
That means 52% tax rate, across the board.
The guy who previously earned $20k and paid $2k tax had a take home of $18k. He gets $12k UBI. Now he pays 52% tax on the $20k, so $10.4k. His take home is now $21.6k.
The closer you get to the floor, the better security there is. You can live on the $12k but you are not rich, and nobody goes without.
The $1m high earner should have paid $400k in tax but actually paid $100k because he pays $20k to an accountant. He now gets $12k UBI and pays $520k in tax because income tax rate is flat and the accountant needs to find another way to earn a crust, though he gets UBI, so..