Smart Taxes likes the basic income idea which we have developed in various contexts in Feasta. We believe it does not cut across the guaranteed job proposal under MMT. In fact, money/currency treated as a commons instead of a public good works rather well in the euro-zone situation where most member states are resistant to political integration. Smart taxes plans to develop this concept in our implementation paper on a Green Job guarantee in the coming months. This blog by the basic Income Guarantee lists other commons dividends i.e. the Alasaka fund and the ‘cap and dividend’ which is so similar to that of the Feasta ‘cap and share’ proposal.
Posted on May 16, 2011 by Karl Widerquist
In March 2011, Brazilian Senator (and tireless campaigner for BIG), Eduardo Suplicy told me and other members of the USBIG and BIEN Committees that he would soon be meeting with President Barak Obama at a dinner during the President’s visit to Brazil. Suplicy asked me to draft a letter to President Obama on behalf of the two organizations. With a lot of help from the committee members and from Alfredo de Romaña and other volunteers, we completed the following letter (see below). Suplicy delivered it on March 19, 2011. According to Suplicy, “[Obama] said that I could be sure that he would read it.”
The full text of the letter to President Obama
March 18, 2011
President of the United States of America
Dear Mr. President,
I am writing you on the occasion of your visit to Brazil—the first country in the world to approve a law authorizing the phase-in of a full Unconditional Basic Income to the whole population. The law (n. 10,835/2004) was passed by consensus of all parties in the National Congress and sanctioned by President Luiz Inácio Lula da Silva on January 8, 2004. According to the law, Basic Income will be introduced step-by-step, starting with those most in need, through the Bolsa Família Program.
Basic Income is the simple idea of a small, government-ensured income for all citizens. It exists today only in one place: the State of Alaska. For the last 28 years Alaska has distributed a dividend, financed out of oil revenues, to every man, woman, and child in the state. Alaska’s “Permanent Fund Dividend” usually varies between $1000 and $2000 per person per year. It has become one of the most popular state government programs in the United States. It has helped to give Alaska the highest economic equality and the lowest poverty rate of any state in the United States.
Many opportunities exist to introduce a similar program at the federal level. The Cap-and-Dividend and Tax-and-Dividend approaches to global warming include a small Basic Income. The inclusion of this dividend can help counter the argument (used against the Cap-and-Trade approach) that taxes on carbon emissions will hurt average American families.
While in Brazil, you will have the opportunity to exchange ideas about Basic Income with President Dilma Rousseff and the author of the law that created the Citizen’s Basic Income, Senator Eduardo Matarazzo Suplicy. He can discuss how the Bolsa Família might be expanded into a true Basic Income and how it might help to attain the main aim of President Rousseff to eradicate absolute poverty and to promote more equality and justice.
I believe that you can improve on the success of the Bolsa Família and the Alaska Dividend by moving toward a Basic Income in the United States. The University of Alaska-Anchorage will hold a workshop entitled “Exporting the Alaska Model” on April 22, 2011. Several researchers will discuss how programs of this type can be introduced and improved. I invite you to send a member of your team to participate in that workshop.
The U.S. Basic Income Guarantee Network Committee:
Michael Howard (chair), University of Maine; Eri Noguchi, Columbia University; Michael Lewis, Hunter College; Almaz Zelleke, New School; Steven Shafarman, Income Security Institute; Al Sheahen, Author; Fred Block, University of California-Davis; Dan O’Sullivan, RiseUpEconomics.org; Karl Widerquist, Georgetown University-Qatar; Jason Burke Murphy, Elms College.
The Basic Income Earth Network Executive Committee:
Note: Feasta is a forum for exchanging ideas. By posting on its site Feasta agrees that the ideas expressed by authors are worthy of consideration. However, there is no one ‘Feasta line’. The views of the article do not necessarily represent the views of all Feasta members.
mer O’Siochru is a qualified architect and valuation surveyor. She was a founder of Feasta and served on its executive committee for many years. She is director of EOS Future Design which designs and develops sustainable systems and settlements. She also manages the Feasta-led Smart Tax Network which is funded by the Department of the Environment, Heritage and Local Government to develop tax policies in areas related to the environment. She lives in Dublin.