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Move towards introducing a Basic Income system

This article is excerpted from Making Choices - Choosing Futures: Ireland at a Crossroads by Se·n Healy and Brigid Reynolds, of the Council Of Religious of Ireland (CORI) which was presented at BIEN 2008 in Ireland. It is the most succinct explanation of Basic Income/Citizen's Income I have yet found. tr

http://www.cori.ie/images/pdf/biencongress08/chapter4.pdf

The present income tax and social welfare system was developed for a world that no longer exists. Neither is efficient nor effective in the emerging reality of the twenty first century. CORI Justice has argued for a long time that the present tax and social welfare systems should be integrated and reformed to make them more appropriate to the changing world of the twenty-first century. We suggest that the present system be replaced by a Basic Income system. A Basic Income is an income that is unconditionally granted to every person on an individual basis, without any means test or work requirement. In a basic-income system every person receives a weekly tax-free payment from the Exchequer, and all other personal income is taxed, usually at a single rate. For a person who is unemployed, the basic-income payment would replace income from social welfare.

For a person who is employed the basic-income payment would replace tax credits in the income-tax system. Basic income is a form of minimum income guarantee that avoids many of the negative side effects inherent in social welfare payments. A basic income differs from other forms of income support in that

  • it is paid to individuals rather than households
  • it is paid irrespective of any income from other sources
  • it is paid without conditions. It does not require the performance
  • of any work or the willingness to accept a job if offered one
  • it is always tax free.

    • As CORI Justice has designed it, a basic income system would replace social welfare. It would guarantee an income above the poverty line for everyone. It would not be means tested. There would be no "signing on" and no restrictions or conditions. In practice a basic income recognises the right of every person to a share of the resources of society. The Basic Income system ensures that looking for a paid job and earning an income, or increasing one's income while in employment, is always worth pursuing, because for every euro earned the person will retain a large part. It thus removes the many poverty traps and unemployment traps that may be in the present system. Furthermore, women and men get equal payments in a basic income system. Consequently the basic income system promotes gender equality because it treats every person equally. It is a system that is altogether more guaranteed, rewarding, simple and transparent than the present tax and welfare systems. It is far more employment friendly than the present system.

    A new system is required for the twenty-first century. Basic income is such a system.

    There are many reasons favouring the introduction of a basic income system. Here are ten such reasons:

  • It is work and employment friendly.
  • It eliminates poverty traps and unemployment traps.
  • It promotes equity and ensures that everyone receives at least the poverty level of income.
  • It spreads the burden of taxation more equitably.
  • It treats men and women equally.
  • It is simple and transparent.
  • It is efficient in labour-market terms.
  • It rewards types of work in the social economy that the market
  • economy often ignores, e.g. home duties, caring, etc.
  • It facilitates further education and training in the labour force.
  • It faces up to the changes in the global economy.

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