If you mean 50% tax bracket for the poor, yes it is a poverty trap. UBI is an improvement over welfare and employment insurance because it doesn’t trap people into not working due to high clawbacks. There is also administration and annoyance savings from not policing/applying for benefits.
If you mean 50% tax bracket for the poor, yes it is a poverty trap. UBI is an improvement over welfare and employment insurance because it doesn’t trap people into not working due to high clawbacks. There is also administration and annoyance savings from not policing/applying for benefits.