this post was submitted on 17 Jul 2025
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Unless I've misunderstood, what OP proposed is just increasing the tax rate of the existing system.
A progressive tax doesn't result in earning less for working harder; it's only the marginal income that's taxed at the higher rate. So a worker who goes from making $50,000 to $60,0000 only pays 15% tax on $10,000 and has a net take home increase of $8,500.
I'm talking about various social benefits like welfare or disability that would ideally be replaced by a UBI.
I hear a lot of stories about this but I don't remember if they're Canadian or not; There's a lot of people who are on disability and are still capable of doing part time work or taking care of their kids for an hour every day for example, but they can't because if they're found doing anything, they lose all of their disability benefits. We want a system that allows them to do what they can and be rewarded for contributing to the best of their abilities rather than punishing them for it.
It's the same deal with welfare. You need to hit a certain income threshold before your take-home income surpasses what you'd get through welfare. Until then, you're putting a bunch of energy into working to make less money when you could be lounging at home and making more. This actively discourages people from bettering their lives.