What if everyone were to receive a basic income from the state

Belgium
May 31, 2007 7:52am CST
Some party in my country has this radical view to fight the loss of jobs and to become more of a competitor towards lowcost countries like China and India. They idea is give everyone a basic income instead of having a complex system of all kinds of benefits and pensions and unemployementbenefits. Result everyone gets money and a drastic cut in all the bureaucratic mambojambo. Of course that basic income will be lower than current unemployment benefits but it would be enough to rent a flat. This means people are more flexible to leave jobs and go for jobs that really fit them because the always have that basic income to fall back on to. Now when you have a job part of your income is that basic income so employers need to pay you less than they pay you now yet you'll earn the same as you do now. Therefore productioncosts go down, so export becomes cheaper. Now by applying a high TVA to the products so that on the internal market the price stays the same, the state gets it's income. Actually labor is not taxed but consumption is which is more fair as rich people consume more they will contribute more even if they don't work at all. What do you think of this theory? Of course it would only work when it's done on large scale otherwise you'd see a lot of TVA fraud.
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