WASHINGTON, D.C. – The Democrats’ propensity for budget-busting spending proposals came to light once again last night in the third Democratic presidential debate. Within minutes of walking on stage, the candidates detailed proposals with price tags so large that no government has ever collected enough revenue to fund them. Among these proposals was Universal Basic Income (UBI), known by one of its major proponents as “Freedom Dividends.”
Estimated by the Tax Foundation to cost a whopping $28 trillion over the first 10 years, UBI would provide all American adults with $1,000 cash each and every month, regardless of their need for government support. Earlier this summer, a proponent of UBI discussed the details of the proposal with New Hampshire Public Radio, stating that “every American adult receives $1,000 a month, starting at age 18 … there are no conditions at all.”
Not only would this bust the federal budget – adding to our existing $22 trillion national debt – but it would also necessitate massive new taxes on the very people the proposal purports to help: the American middle class. Mainstream economists agree that economic growth is the key to increasing wages and living standards, but the massive new taxes or increased deficit spending that UBI would require would likely slow economic growth, stifle wages, and eliminate jobs.
Congressional Republicans on the other hand support pro-growth policies such as the Tax Cuts and Jobs Act (TCJA), which put more money in the pockets of hard-working American families and in 2018 helped wages rise at the highest rate in over a decade. Further, with unemployment near record lows and mandatory spending already projected to account for 75 percent of all federal spending by 2029, now is not the time to start a new, budget-busting program. Republicans will continue to promote policies that expand opportunities, create jobs, and increase wages.
Next week the House Budget Committee will hold a hearing entitled “Solutions to Rising Economic Inequality,” in which Committee Democrats will likely highlight Universal Basic Income.
To learn more about another UBI program, the LIFT Credit, click HERE.
To learn more about Democrats’ other budget-busting proposals, click HERE.