How Much Does Basic Income Cost? Modelling Basic Income as Universal Life Annuity

IF 1 Q3 ECONOMICS

Basic Income Studies Pub Date : 2019-11-16 DOI:10.1515/bis-2019-0014

Wee Chung Gan

引用次数: 2

Abstract

Abstract The cost of basic income is typically estimated for a particular year. However, to assess the financial feasibility of basic income, it is also important to consider how much basic income will cost in the future. This is especially important in countries experiencing an ageing population, where the proportion of workers is expected to shrink. This article considers basic income as a universal life annuity and develops two models based on actuarial concepts to estimate the flat tax rate required to finance basic income. The first model considers the cost of basic income over the lifetime of the current population and the second model additionally considers changing population dynamics. The proposed models are conceptually simple, providing a straightforward way to assess the financial feasibility of basic income. Using Singapore data, the models show that the monthly cut-off income separating net contributors and net recipients is around $2710 and benefits around 39 % of adult residents. A tax rate of around 22 % is required to support a basic income of $600.

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基本收入要花多少钱?将基本收入建模为通用终身年金

基本收入的成本通常是在特定年份估计的。然而，为了评估基本收入的财务可行性，考虑未来基本收入的成本也很重要。这在经历人口老龄化的国家尤其重要，在这些国家，工人的比例预计会缩小。本文将基本收入视为一种普遍的终身年金，并基于精算概念开发了两个模型来估计基本收入所需的统一税率。第一个模型考虑了当前人口一生中基本收入的成本，第二个模型还考虑了不断变化的人口动态。拟议的模型在概念上很简单，为评估基本收入的财务可行性提供了一种直接的方法。利用新加坡的数据，这些模型显示，净缴款者和净受助者之间的月收入分界线约为2710美元，约39%的成年居民从中受益。大约22%的税率才能维持600美元的基本收入。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Basic Income Studies ECONOMICS-

CiteScore

2.40

自引率

18.20%

发文量

期刊介绍： Basic income is a universal income grant available to every citizen without means test or work requirement. Academic discussion of basic income and related policies has been growing in the fields of economics, philosophy, political science, sociology, and public policy over the last few decades — with dozens of journal articles published each year, and basic income constituting the subject of more than 30 books in the last 10 years. In addition, the political discussion of basic income has been expanding through social organizations, NGOs and other advocacy groups. Internationally, recent years have witnessed the endorsement of basic income by grassroots movements as well as government officials in developing countries such as Brazil or South-Africa. As the community of people working on this issue has been expanding all over the world, incorporating grassroots activists, high profile academics — including several Nobel Prize winners in economics — and policymakers, the amount of high quality research on this topic has increased considerably. In the light of such extensive scholarship on this topic, the need to coordinate research efforts through a journal specifically devoted to basic income and cognate policies became pressing. Basic Income Studies (BIS) is the first academic journal to focus specifically on basic income and cognate policies.