Sir, – Your article on universal basic income (UBI) refers to a reported cost of “up to €50 billion a year” in an ESRI study (News, December 20th). The author of the report acknowledges that the idea of UBI receives a lot of public attention, so it would be helpful if the subject matter and associated costs are reported within a wider context.
Different models of UBI can be considered, as noted in the ESRI report, which looked at four levels of weekly payments of between €56 and €277, the latter giving rise to the headline cost.
Such a level of variance prompts the question of what level of weekly payment is “basic”.
In Ireland, we already have the State’s view of what a person who is unable to earn an income needs to live, and that is €208 per week, increasing to €220 on January 1st .
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In a paper presented to Basic Income Earth Network (BIEN) 2021, John Baker and I proposed a model of UBI of €208 per week that was fully funded within the income tax code while maintaining existing income tax rates of 20 per cent and 40 per cent and employee PRSI of 4 per cent.
Instead, the calculated gross annual cost of €39 billion would be funded by reductions in core social protection transfers of €14 billion, reductions in income tax credits and allowances of €7 billion, increases in employer PRSI of €2 billion, together with an increase of €16 billion in USC contributions.
Our model delivers positive income redistribution for those earning up to €60,000 per annum. Incomes earners of €100,000 would be worse off by less than €1,000, while those on €300,000 would pay €5,000 more in taxes.
Full details are available on the Basic Income Ireland website.
Gross costs of introducing UBI need to be presented in the context of savings arising from the reduction in existing social protection payments together with proposed income tax changes. – Yours, etc,
Cllr DAVE QUINN,
Social Democrats,
Dún Laoghaire
Rathdown County Council,
County Hall,
Marine Road,
Dún Laoghaire,
Co Dublin.