Optimizing A UBI Because of a Tweet

So, last week I did a thing and claimed that I'd create a more optimal version. Oh, boy, do I hate my past self.

Optimal Rates, Minimum Effort

I'm not going to do calculus. Instead, I went to a graphing calculator and graphed it, taking the highest point on the graph for the highest tax rate that could be charged before things turned sour.

So it looks like we can use a 57.735% rate for the flat tax. Plugging that into the formula {950 x (r x 100) x (1 - r^2) where r is the tax rate being used, represented as a proportion. I'm sure that I've gotten this wrong somehow, so if any economists are reading this, feel free to leave a comment and give me something better to find an optimal rate on a Laffer Curve} gives us $36,565.5 Billion in total revenue over the next decade.

Subtracting the previously calculated $21,252 from the optimized (I guess) tax revenues gives us $15,313.5 Billion over the next decade. Dividing that by an inflation-adjusted 10 years gives us $1,392.14 Billion in the first year that we could use for the basic income rebate. In the first year, we'd have $5,429.35 per adult citizen per year, or an average of $452.45 per month.

In Practice

For a person earning the current minimum wage of $7.25/hour ($15,080/year), they would be paying $8,706.438 annually in income taxes and receive the $5,429.35 back as the standard UBI. Their net tax burden would be $3,277.088, or 21.73%.

For a person earning a living wage of $15/hour ($31,200/year), they would be paying $18,013.32 every year in taxes. After considering the amount they'd be getting back through the basic income, their net tax burden would be $12,583.97 or 40.33%.

For a person earning $1,000,000 per year, they would be paying $577,350 annually in income taxes. Their net income tax would be $571,920.65 after taking the $5,429.35 into consideration, or 57.19%.

Yes, this system of flat-tax-and-UBI would lead to overall progressive taxation, but people earning sub-living wages will be taxed at a minimum more than corporations are currently being taxed at the maximum.

Is it worth it?