Sunday, November 1, 2015

Financing Basic Income Gurantee

No interest Debt
No Interest Debt

The simplest way to finance a "Basic Income Guarantee" is to levy a flat FICA tax on all income (excluding Basic income ] on both employer and employee. The tax is necessary only to balance the money circulating in the economy to the amount of available skill labor, productive capacity, and raw material. This helps control inflation when the ability to produce goods & service becomes stressed by scarcity of inputs.

The rest of the cost can just be added to the federal debt. That could be financed by the Federal Reserve System with 100 year Bonds at 1% interest. Then the Bonds can be retired from existence with no need for refinancing when they reaches maturity.