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UBI: Universal Basic Income w/ Ben Phillips, ANU - EP126

Economics Explored

00:00

Does It Reduce the Effective Marginal Tax Rates?

Ben: I think as a general rule the more money that the higher the program costs the higher the overall MTRs. But for certain groups that do face three high MTRs and say 70 80 90 cents in the dollar, they probably would come down. So it really varies where you are in the income distribution but if you're giving more money out, you're probably going to have a high MTR across the board. Right. Okay. Now what does it mean for those effective marginal tax rates you talked about, is this, does it actually reduce them? Is there any way of reducing the impact or, am I on the wrong track here Ben?"

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