Scrap the Welfare State and Give People Free MoneySubmitted by bobbyw24 on Wed, 11/27/2013 - 08:49
Of course libertarians, who are in favor of less government spending, may be concerned that were a basic income to be implemented that it would cost more than the current welfare system. However, it is worth considering that, as Peter Ferrara pointed out in Forbes, the Census Bureau estimates that our total welfare spending is four times the amount that would be needed to lift all Americans currently living in poverty above the poverty line by giving them cash.
In 2008, Charles Murray wrote that a guaranteed income for all American adults over the age of 21 who are not in prison of $10,000 a year that would replace all current welfare programs as well as agricultural subsidies and corporate welfare would be cheaper than maintaining the current welfare system in the coming decades.
It is important to point out that under Murray’s proposal, which is outlined fully in his book In Our Hands: A Plan To Replace The Welfare State, after someone’s total annual income reached $25,000 a 20 percent surtax tax would be imposed on “incremental earned income,” capped at $5,000 once someone earns $50,000 a year. Murray’s plans also requires that $3,000 of the $10,000 grant be spent on health insurance.