A new working paper from the American Enterprise Institute analyzes the economic impact of a policy that would repeal most safety net programs and replace them with a universal basic income (UBI). The plan would repeal dozens of existing programs including the Child Tax Credit, Earned Income Tax Credit, Medicaid, and Social Security, replacing them with an annual UBI of about $14,000 for individuals over 18 and about $7,000 for minors. A Budget-Neutral Universal Basic Income finds that the plan would negatively impact the poorest and wealthiest households, but would increase annual incomes for those in the middle.
