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I, tonyotag, agree with Universal Basic Income for all (citizens) from the Federal Reserve. [Why would previous presidential candidate Yang want the pay for UBI from a national sales tax rather than just print when needed from the federal reserve?]
Design:
- Each American Citizen registers with their bank per Date of Birth (probably already on account due to financial and privacy identification regulations with a state issued identification.) (This is for reception of the money per deposit.)
***Note that there are many citizens who are "un-bankable" because of account abuse in the past. These citizens should have a simple restricted checking with no debit card only; OR only given a check to cash as mailed to last known address per IRS filing. If not, received in a period of time specified in law [12 or 24 months...], then the money is forfeited as federal treasury as revenue (or back to the federal reserve) and payments suspended. [more on this later as multiple accounts could be canceled due to death or emigration of the citizen.]
***** money must be paid back if citizenship for payments fraud or double dipping is caught. (can include civil and criminal penalties.) Citizens with felonies or misdemeanor can receive payment in jail BUT any claims on the money legally must be paid first via the court taking over the bank account for adjudicating the funds.
-Underage citizens can also get the money but only can be deposited into a college or education fund and be used 16 or older OR can be used when turned 21. OR payments can only be given when the child turns 16 and then only placed into an education fund when 18 or older (or sooner if graduated high school and attending college at 17 or younger. Payments out of the account can only be then made to a college or university of the citizen's choice with full time attendance for tuition/books/housing/clothing only (maybe in that order?) After the citizen turns 18 then the account can be withdrawn with regular tax basis income.
- Congress passes a bill that IF AND ONLY IF interest rates are at or near zero (as they are now) then the Federal Reserve CAN push money directly to bank accounts (or checks in the mail) per the mandate of maintaining growth (GDP) and inflation.*
- All US citizens regardless of (incarceration) status get equal payments, if any, given by the Federal Reserve.
- Corporations DO NOT receive the money due to they are not citizens, just "people" in the eyes of the courts. (Business owners/shareholders can use this money to invest in their own business, if they wish.)
- Money received this way generates a 1099-MISC (or another tax income document that congress can dictate per law) tax statement as income for IRS purposes and is subject to goverment tax holdings.
- Congress (majority vote) and the President of the United States monitors and retains power to shut off the payments per regular process of passing a law. (The open nature of political discourse is necessary anyway.)
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- If possible right size the US Tax Code for accurate price signaling in the economy
****note that the federal reserve mandate is low unemployment AND price stability. Meaning that the federal reserve will lower or increase interest rates when appropriate for currency controls of inflation AND jobs. The law should change if citizens federal reserve dividends are sent out to be ONLY LOW INFLATION (and GDP growth) per target per federal reserve board appointed by the federal goverment (as done now.) A perceived negative out of this is that now labor is focusing directly more at congress than the federal reserve for jobs guidance.
**************ADDITIONALLY**************
What would the value of the Citizen's Dividends be from the Federal Reserve?
Depends on how much is needed to get back to what the federal reserve's target inflation and growth rate would be. My proposal would be a binary test, then a value amount.
The binary test is if and only if inflation is at or below a threshold then the federal reserve should do citizens dividend (as a dressed up version of quantitative easing.)
The binary works as like this:
If fed target interest rates are at 0-0.25 percent rate and there is no more room to go down AND all other policy tools are foresee-ably exhausted.
THEN
If inflation is less than zero (deflation) then yes, defiantly give a citizen's dividend.
If inflation is less than the target inflation AND there is no or negative growth, then yes, definitely give a citizen's dividend.
If inflation or growth is above zero AND fed target interest rates are at 0-0.25 percent then wait for more data (no.)
If inflation or growth is at or near zero then maybe start or give a limited citizen's dividend.
All other cases are no OR the citizen's dividend reverts to normal as profits are given back to the federal government's treasury department as federal revenue. (This is when interest rates and/or inflation go back up.)
If the answer is yes, then the dividend should be in palatable increments to avoid giving near worthless checks (say like a loose change check or deposit of less than a dollar) as that would be a waste of goverment bureaucratic machinery. The best increment at this time of 3/22/2020 would be in $100 increments or $1000 increments. Something that is significant enough to write on a check and most people would guard until deposited or wired to their bank account.
(The increment should be quantified per equation and be of the first three significant digits no less than $100.)
Additionally, Congress should address the statistical issues around counting inflation AND unemployment as the rules of such are antiquated and can be targeted for better info by statisticians and applied mathematics professionals.
Finally, the process should be overseen and no state interference.
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