Booker's Baby Bonds VS. Yang's Universal Basic Income VS. Warren's Wealth Tax

[Nak Khid]

Cory Booker's Baby Bonds vs.  Andrew Yang's Universal Basic Income

 

Cory Booker's Baby Bonds

Booker’s plan would offer all newborns $1,000, a low-risk savings account managed by the Treasury Department
and then add up to $2,000 annually for children in low-income households. By age 18,  Booker’s team estimates that for kids from lowest-income families, the nest egg would average some $46,000.
3 percent estimated rate of return on account.

The baby bonds idea isn’t new. British Prime Minister Tony Blair made the proposal a centerpiece of the Labour Party’s 2001 campaign, and his Chancellor Gordon Brown began implementing the plan in 2003, only to have the Conservatives cancel the accounts upon taking power in 2010. Hillary Clinton proposed a $5,000-at-birth baby bond in fall 2007 as part of her 2008 presidential bid, before abandoning the plan as the primaries dragged on.
He also advocates raising  the minimum wage to $15/hour.

Andrew Yang's Universal Basic Income "The Freedom Dividend"

Andrew would implement the Freedom Dividend, a universal basic income of $1,000/month, $12,000 a year, for every American adult over the age of 18. This is independent of one’s work status or any other factor. This would enable all Americans to pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future.

Other than regular increases to keep up the cost of living, any change to the Freedom Dividend would require a constitutional amendment.

It will be illegal to lend or borrow against one’s Dividend.

Young claims a Universal Basic Income at this level would permanently grow the economy by 12.56 to 13.10 percent—or about $2.5 trillion by 2025—and it would increase the labor force by 4.5 to 4.7 million people.

 

Elizabeth Warren's Wealth Tax

Senator Elizabeth Warren (D-Mass) recently announced her proposal for a wealth tax, which would apply to Americans with more than $50 million in assets.

The tax, which Warren refers to as the "Ultra-Millionaire Tax," would raise $2.75 trillion over a 10-year period, according to economist Emmanuel Saez.

Here's how it would work. Americans with $50 million or more in assets would be assessed a 2% annual wealth tax, while those with $1 billion in assets or more would be assessed a 3% rate.

The plan would also increase funding to the IRS to help combat tax evasion, especially by the wealthy, and would also provide for a one-time tax penalty on people who renounce their U.S. citizenship in order to avoid paying the wealth tax.
"used to build an economy that works for everyone, including universal childcare, student loan debt relief, and down payments on a Green New Deal and Medicare for All. And we can make a historic investment in housing that would bring down rents by 10% across America and create 1.5 million new jobs."

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The plans are actually quite different. Notably,  Cory Booker's plan is more modest, relatively easier to pass and oriented towards newborns $1,000 per year with yearly increases (apparently up to 18?)  and the yearly increases up to $2000 based on family income.  This variation is designed to reduce the income gap. I haven't seen further detail, I am not sure how long it would take for the child or parents to be able to draw money out of the account

Yang's proposal $1,000/month, $12,000 a year, for every American adult over the age of 18 is designed to to grow the economy and counteract future automation of jobs.
 

Quote

Some observers argue Universal Basic Income it would cause large scale inflation, and is not affordable, given the size of our national debt. Others fear it will incentivize people not to work, and undermine our existing safety net for the poor. These concerns must be explored in depth.

While UBI has been tested on a small scale, as with Finland’s experiment with unemployed individuals, or an ongoing initiative implemented by Stockton mayor Michael Tubbs, we simply don’t know how UBI will function on a national or semi-national basis, in a country as large and varied as the United States. Ultimately, it makes sense to conduct as many experiments as possible, and learn more.

 

Nevertheless this is very hypothetical at this point with Booker and Yang far down in the polls

 

Edited November 11, 2019 by Nak Khid

[Leo Gura]

Problem with baby bonds is that millions of adults need help now. They ain't babies. We gonna help the babies but not the adults who raise them??

[Nak Khid]

I was thinking that same thing. Maybe both plans could be combined into one with the amounts adjusted into one
ness 

[CreamCat]

UBI can cover babies.