I generally agree with this analysis, but there are two areas in particular that keep tripping me up:
Focusing on income taxes does not take into account generational accumulation of wealth which is a huge factor in wealth inequality, and especially racially disparate wealth inequality. Means testing tries to take this into account by looking at overall assets, not just current income. (This could also be addressed by some kind of overall wealth tax, for example as proposed by Elizabeth Warren, but that’s been pretty controversial when proposed)
If we were started fresh, I think there would be huge advantages to eliminating most of the existing welfare system and replacing it with a combination of (more) progressive income taxes, guaranteed basic income, and perhaps even a reverse income tax. But I struggle with the realities of the world we’ve built and in particular the problem of narcotics addiction, and what it would look like if dedicated support for food/housing/etc. were offered as cash equivalents instead. I realize this is a patronizing position, that it does not apply to all (or even most) people, and that there’s already plenty of abuse of our existing systems—but I still think it’s something we need to think about.
I generally agree with this analysis, but there are two areas in particular that keep tripping me up:
Focusing on income taxes does not take into account generational accumulation of wealth which is a huge factor in wealth inequality, and especially racially disparate wealth inequality. Means testing tries to take this into account by looking at overall assets, not just current income. (This could also be addressed by some kind of overall wealth tax, for example as proposed by Elizabeth Warren, but that’s been pretty controversial when proposed)
If we were started fresh, I think there would be huge advantages to eliminating most of the existing welfare system and replacing it with a combination of (more) progressive income taxes, guaranteed basic income, and perhaps even a reverse income tax. But I struggle with the realities of the world we’ve built and in particular the problem of narcotics addiction, and what it would look like if dedicated support for food/housing/etc. were offered as cash equivalents instead. I realize this is a patronizing position, that it does not apply to all (or even most) people, and that there’s already plenty of abuse of our existing systems—but I still think it’s something we need to think about.
Boxfoot