You're correct, that's my mistake — it is the effective tax rate.
Doesn't change the argument, the point of the exercise is to show the absolute worst case. This math assumes:
1) 0 overlap with existing programs, which is extraordinarily unlikely. A transfer of $29,000 to a recipient of EITC/CTC and Medicaid is a pretty stupid waste of money. We would either reduce the UBI required (thereby reducing the taxes to the level I laid out in my top-most comment), or we would do away with many of the welfare programs that we already pay taxes for.
2) preservation of existing level of transfer payments to a demographic that is, on average, the richest
3) 0 other taxes. My math assumes an imaginary world in which we do not levy payroll taxes, which account for 35% of the current Federal revenue. That is a world which does not exist, and hence the income tax wouldn't have to be this high.
4) 0 distinction between adults and children — I.e should a family of 4 receive $29,000*4 == $116,000? Absolutely not, this is a comically generous UBI.
The point is that you can take the framework and play with different levels of generosity and different levels of progressivity in the tax brackets. The fundamental basis for the system doesn't change.
Doesn't change the argument, the point of the exercise is to show the absolute worst case. This math assumes:
1) 0 overlap with existing programs, which is extraordinarily unlikely. A transfer of $29,000 to a recipient of EITC/CTC and Medicaid is a pretty stupid waste of money. We would either reduce the UBI required (thereby reducing the taxes to the level I laid out in my top-most comment), or we would do away with many of the welfare programs that we already pay taxes for.
2) preservation of existing level of transfer payments to a demographic that is, on average, the richest
3) 0 other taxes. My math assumes an imaginary world in which we do not levy payroll taxes, which account for 35% of the current Federal revenue. That is a world which does not exist, and hence the income tax wouldn't have to be this high.
4) 0 distinction between adults and children — I.e should a family of 4 receive $29,000*4 == $116,000? Absolutely not, this is a comically generous UBI.
The point is that you can take the framework and play with different levels of generosity and different levels of progressivity in the tax brackets. The fundamental basis for the system doesn't change.