Universal Basic Income (UBI) has been a subject of discussion by policymakers, economists, and social activists for a long time. Once again in 2025, the UBI proposal in the US is back in the news. The scheme is meant to minimize the gap between income, ensure economic security, and soften the loss of jobs on account of automation. But what exactly is this scheme, who will be eligible, and how will it work? Let’s try to understand it in detail.
What is Universal Basic Income (UBI)?
Universal Basic Income (UBI) is government-sponsored plan from which a fixed amount is provided to individuals, with or without a job. The main objectives of this kind of scheme are:
- Poverty Reduction: The aim of the scheme is to help people financially in regard to their basic needs, such as food, housing, and healthcare.
- Ensuring financial stability: This plan ensures that one has a regular source of income when the country’s economy is in recession.
- Mitigating the effects of automation: Technology is getting advanced, and various jobs are becoming redundant. The UBI plan will ensure the financial security of those whose jobs are being made redundant by the automation process.
The US government suggests that each eligible citizen would be given $1,000 every month in 2025.
US Universal Basic Income (UBI) 2025 Proposal
| Aspect | Description |
|---|---|
| Policy Name | Universal Basic Income (UBI) Proposal 2025 |
| Proposed Payment | $1,000 per month to each eligible individual |
| Eligibility | US citizens and legal residents aged 18 years and above |
| Funding Source | Taxes on large companies, property taxes and carbon taxes |
| Goals | Eradicate poverty, enhance economic security, and combat job losses due to automation |
| Pilot program | Tested in Stockton, California and other states |
| Official status | Being debated in the US Congress, may be enacted by the end of 2025 |
Eligibility criteria for UBI 2025
Not everyone will get the benefit of this scheme, there are some conditions for this:
- Citizenship or residency status: He/ She must be a U.S. citizen or legal resident.
- Minimum age: He or she must be of minimum 18 years of age to receive benefits under this program.
- Income-related conditions: No upper income limit has been established but preference shall be given to applicants whose annual income is not above $75,000.
- Tax compliance: Applicants eligible for the program shall have had taxes regularly paid and shall have complied with tax legislation.
How will the UBI scheme work?
- Monthly payment: Eligible individuals will be given $1,000 every month directly through their bank account or prepaid debit card. This amount will be distributed without any restrictions, i.e. recipients can use it as per their need.
- Financial sources: The scheme is proposed to raise funds through the following taxes:
- Corporate tax: Higher taxes will be levied on large companies, which are making profits because of automation.
- Carbon tax: Money received from environmental tax will also be used to fund this scheme.
- Adjustment with existing schemes: Under this scheme, some existing social welfare schemes will be adjusted, while some schemes will remain the same.
- Regular review and assessment: The government will periodically review and assess the scheme to ensure that it is effective and sustainable.
Possible advantages of the UBI proposal
- Diminishing economic inequality: This scheme will support lower and middle-class families in terms of monetary support and diminish wealth inequality.
- Business and entrepreneurship: There will be surety regarding a stable income so that the individual may take risk, new ventures, or invest in education.
- Health and mental well-being: Earlier pilot studies suggested that UBI decreased mental stress among the populace and increased health facility access.
- Job losses through automation: UBI would ensure that their financial security will not be adversely affected due to the loss of jobs caused by new technologies.
Critics and challenges for the UBI proposal
- Costly: Many experts feel this scheme could amount to $3 trillion per annum, which will be a very heavy burden on the federal budget.
- Lack of motivation: Some people also believe that this scheme will not make everyone want to work, because the money is being given for free. However, this was not found in pilot programs.
- Effective identification and fraud prevention: This system will require strong infrastructure and monitoring to work properly so that beneficiaries can be correctly identified and fraud can be avoided.
- Political challenge: Most politicians do not deem this scheme a feasible one to be economically operated, and expect that it may not be significantly beneficial to current welfare schemes.
Conclusion: This US Universal Basic Income (UBI) 2025 plan is an audacious proposal.
FAQs
Q.How will UBI be funded?
A.UBI will be funded through taxes on large corporations, wealth taxes, and carbon taxes
Q.How much will the 2025 UBI payment be?
A.Eligible individuals will receive $1,000 per month under the 2025 Universal Basic Income proposal.
Q.Who is eligible for the 2025 UBI payments?
A.US citizens or legal residents aged 18 and above, with an annual income below a certain threshold, will be eligible for the 2025 UBI.