"Personally I strongly believe in the Citizens' Income - a payment to everyone to live on regardless of their circumstances."
I've never seen this convincingly explained.....
As a quick guide each tax payer would have to pay enough tax to fund 1.5 people on the Citizens Income. The average salary is now meant to be around £25k, so how much would the Universal Credit be? £10k? That's not much and yet to fund it the average salary earner would have to pay £15k in tax, a vote winning 60% tax rate.
And that's just to cover benefits, which take up about 1/3 of Government Spending. So you need a 60% tax rate to support 1/3 of Government spending. What would you need to support the other 2/3?
Let's call that extra 0.5 person that every tax payer has to support that Government spending on benefits. So per tax payer the Government spends £5k on benefits, so make that £10k on other things.
So now that average earner on £25k has to pay £15k to fund the universal benefit and £10k to fund other Government spending, £25k in total. Welcome to the land of 100% tax rates.
Sure that earner will then get £10k back from the Government, but then they've lost a whopping 60% of their income and they're no better off than someone who just says "stuff this work lark, I'm living on the Universal Credit". Is that fair?
It just doesn't work.
And we're told a story that the system would be simpler, that it would save money in admin costs. But then you dig around and actually the proposals include extra money for pensioners, extra money for the disabled and ill and extra money for children.
So it's not simple at all, it's almost as complex as what we have now.
As said, it just doesn't work.