Funding UBI

One argument against any Unconditional Basic Income (UBI) is how will it be funded? As The Universal Right to Capital Income argues, “If a universal basic income is to be legitimate, it cannot be financed by taxing Jill to pay Jack.” The author proposes funding it with returns on capital. All corporations use public infrastructure, public courts, and the social order. Corporations are dependent on a stable society.

So how should society be compensated? Taxation is the wrong answer. Corporations pay taxes in exchange for services the state provides them, not for capital injections that must yield dividends. There is thus a strong case that the commons have a right to a share of the capital stock, and associated dividends, reflecting society’s investment in corporations’ capital. And, because it is impossible to calculate the size of state and social capital crystalized in any firm, we can decide how much of its capital stock the public should own only by means of a political mechanism.

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