Comment by hedora

For instance, you can time (usually, defer) your income to make sure you are never in a higher tax bracket. That doesn’t worth with flat tax with UBI.

One big problem with stock based compensation is that it pushes income into a big windfall year. The top marginal tax rate in the US is something like 52%. So, someone that would pay 25-30% effective tax in a fictional average year ends up paying 52% on multiple years worth of income.

Also, you can’t use the standard deduction to make your taxes negative. Assuming the average effective federal tax rate is 25%, to convert the standard deduction to UBI, it’d be reduced from $22,500 to $5600, but applied to the total tax owed, leading to the IRS paying you if you paid less than $5600 in taxes pre-deduction.

I think $5600 is too low. It should be enough to live off of. The 25th percentile household income in the US is $40000. $10,000 UBI per person seems more reasonable (probably still too low) to me.