It seems like a system like this would be designed to replace Social Security, Medicare, Disability, Food stamps, WIC and other benefits paid to those who are poor, disabled or not working (which would be well over a trillion dollars -- see http://www.usaspending.gov/explore). I'd imagine you'd also remove the standard deductible and other deductions and exemptions for taxes and possibly move to a flat tax bracket that wouldn't discourage people from earning more money or working in general. The question is, how much more money would that bring in, if any?
Also, if you just give people money, will they really spend it on basic necessities or spend it unwisely? Seems like it would work better if the money were given as housing, food, and healthcare insurance vouchers that could only be used for those purposes.
It will be interesting to see if/how this works out Switzerland.
"Seems like it would work better if the money were given as housing, food, and healthcare insurance vouchers that could only be used for those purposes."
I was asking myself the same at first. The thing is, all those would limit choices, the effect of which would be an object of hate. In addition, in USSR people were directed (or at most offered a choice of a few options) to planned working places where they should live and work, which was in fact just the way they were given many of the other things. As expected, that only spawned an underground markets (for products, services, and even for perspectives) on which were traded choices that weren't freely available. I think therefore that it's better to let everything on the table for the benefit of all.
About the quantity of money, maybe it would be best if this "citizen allowance" to be not a fixed sum, but calculated from how much the state can afford to give. Say it is 50% of the entire budget split on the number of citizens. More money gathered in budget - more per allowance, and if the allowance is getting smaller - the more people are encouraged to get involved as taxpayers. It would be a fair circle and a strong argument for everyone to either shut up or get involved.
I'd love it if we had a functioning individual market for health care, so that such a system could replace Medicaid/Medicare, but the jury's still out on that. Fingers crossed that ACA exchanges actually work out without requiring massive subsidies.
vouchers aren't fungible and then you need to pay for the whole system of authenticating/converting them. I don't have a problem with people spending unwisely; they will starve to death and stop collecting payments, right?
But you know that the groups that are continually pushing for expanded minimum wages, and other benefits would never let this happen. They'd find some paternalistic way of controlling the money, providing housing etc. And we have the last fifty years of The Great Society to show how well that works in fighting poverty.
Also, if you just give people money, will they really spend it on basic necessities or spend it unwisely? Seems like it would work better if the money were given as housing, food, and healthcare insurance vouchers that could only be used for those purposes.
It will be interesting to see if/how this works out Switzerland.