I certainly don’t know enough about Utrecht’s economy to say if the Dutch city’s plan to provide universal basic income is a good one or what the success or failure of the experiment would mean, if anything, beyond its borders, but it certainly will get rid of a lot of bureaucracy. In the U.S., the measuring of the needs of people across a multitude of plans carries heavy administrative costs.
From DutcheNews.nl:
Utrecht city council is to begin experimenting with the idea of a basic income, replacing the current complicated system of taxes, social security benefits and top-up benefits.
City alderman Victor Everhardt says the aim is to see if the concept of a basic income works in practice. ‘Things can be simpler if we base the system on trust,’ he told website DeStadUtrecht.nl.
The experiment will start after the summer holidays and is being carried out together with researchers from Utrecht University.
In theory, a basic income consists of a flat income to cover living costs which, supporters say, will free up people to work more flexible hours, do volunteer work and study. Additional income is subject to income tax.
The Utrecht project will focus on people claiming welfare benefits. One group will continue under the present system of welfare plus supplementary benefits for housing and health insurance. A second group will get benefits based on a system of incentives and rewards and a third group will have a basic income with no extras.•
Tags: Victor Everhardt