There so much contradiction when politicians are talking about universal basic income it’s mind-blowing to me.
The absurd thing is they tax passive income so high it is insane and then, on the other hand, they want to talk about giving income for free.
Dividends are highly taxed. In some countries even double taxed, once in the country of origin and a second time in your own country. The case in Belgium where I live. But in most countries around the world dividends are quite heavily taxed as well.
This is what governments should do instead
They should launch a tax-incentivised income account where dividends are tax-free until a certain monthly income so you can build up your own basic income very fast.
Similar to retirement plans, but then for income. Tax-free dividends would be a great start. The next step could be a deduction on taxes of your active income, that would really give this idea a boost.
This approach will have the following effect:
- It will be easier to reach financial freedom, but people will have earned it. There is no entitlement. People will appreciate the goal they have reached.
- A feeling of accomplishment and the discipline it will have taken to reach the goal will further reflect in life. Like a lot of people say the army learned them the discipline they use in their lives.
- The money is invested in the economy and the businesses that own the robots. This money flows back to the population in the form of income and dividends. This is a more natural transition from the old to the new economy.
- Instead of taxing the robot companies and holding back innovation and progress, this influx of shareholder capital will further promote progress instead of holding it back.
I hope this idea finds its way to politicians and this can inspire them to take action. Always happy to talk Donald, Angela 😉