1. A concrete and financed proposal
Basic Income
A concrete and financed proposal
Christian Engström

2. christianengstrom.wordpress.com

3. Basic Income
Is it possible?

4. We already have basic income (sort of)
Is it possible?
Yes, obviously!
We already have basic income (sort of)

5. The Problem Social Assitance (socialbidrag)
— the jaws of the welfare trap
Means tested
Arbitrary
Insecure
Degrading
Totally destitute
100% marginal effect

6. The Problem The Employment Agency (Arbetsförmedlingen)
does not give people employment
Unemployment benefits:
Income related
Time limited
Tied to activities
Bureaucratic maze

7. The Model Goal: To find a model for Basic Income that is
- Economically realistic
- Politically realistic

8. The Model A concrete proposal: 8,333 SEK/month tax free (~900 €)
to everyone 19-64
living in Sweden
if (s)he has no other income

9. Money for nothing to everyone?
No, doesn't work:
100,000 SEK/year to
10 million people
would be
1,000 bn SEK/year
900 bn SEK/year – total government budget
1,800 bn SEK/year – total public spending

10. The Model ”Negative Income Tax” 33% phased out benefit 33% income tax
The Basic Income is phased out
when you make money yourself
33% phased out benefit
33% income tax
33% in your pocket

11. The Cost

12. The Cost

13. (Cost with100% welfare trap: 102 bn SEK)
The Cost
(Cost with100% welfare trap: 102 bn SEK)

14. The Cost

15. Cost: 132 bn SEK

16. The Financing Social Assistance (socialbidrag)
Student Aid (studiemedel)
Public Employment Agency
Unified VAT 25%
Total:
11 bn SEK
17 bn SEK
64 bn SEK
50 bn SEK
142 bn SEK
(Arbetsförmedlingen)

17. The Financing But don't touch: Sickness insurance (sjukförsäkringen)
Disability pensions (sjukersättning, aktivitetsersättning)
Child and family benefits (stöd till barnfamiljer)
Child allowance (barnbidrag)
Parental leave (föräldraledighet)
Other benefits for people with children

18. Basic Income — Summary 8,333 SEK/month (~900€) to everyone 19-64
living in Sweden
with no other income
33% phasing out
Cost 132 bn SEK, financing 142 bn SEK
Replaces social assistance, student aid, and unemployment benefits. Unified VAT 25%
Disability pensions and family benefits unchanged

19. christianengstrom.wordpress.com

20. Vad kostar olika nivåer?
Basinkomst
Vad kostar olika nivåer?

21. Basinkomst
Vad kostar olika marginaleffekter? (marginaleffekt = avtrappning + kommunalskatt)