Universal Basic Income (U.B.I.) is all over the news these days.
It is government money given out to all US citizens with no strings attached.
It is also known as “Guaranteed Minimum Income”. And like the phrase says, we are guaranteed income for doing absolutely nothing.
Why are we getting this cash? Because the robots are taking over. And jobs will become more scarce. So the government is going to try and fill the gap.
Even Tesla’s Elon Musk claims free cash handouts “will be necessary” if robots take humans’ jobs.
Here are the common questions asked about universal basic income:
What is Universal Basic Income?
Universal Basic Income is a system like Welfare. It is an unconditional cash payment given at regular intervals by our government to all residents.
How much will I get?
There is talk that each US citizen will receive $10,000 a year.
Is Universal Basic Income before or after tax?
The base salary is our total gross pay before income taxes, Social Security and Medicare taxes are withheld. This is the gross amount, not the net amount we actually see deposited into our bank account.
Can I combine Universal Basic Income with my work pay?
Yes, we can accept Universal Basic Income and combine it with our job’s pay – if we still have a job that is.
Isn’t this another form of Social Security?
Technically no. Workers pay 6.3% of their wages into a Social Security “insurance” fund. Employers match this payment. But, Universal Basic Income is more or less Welfare 2.0. The US government is paying this out from the collection of all the income taxes we pay. This probably means our income taxes are going to rise to offset these payouts.