But Yang doesn’t stop there. He not only waters down the total payout, he then proposes to use the UBI to
replace extant welfare spending. When you go to Yang’s website, it actually
says this:
Andrew proposes funding UBI by consolidating some welfare programs and implementing a Value-Added Tax (VAT) of 10%. Current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally – most would prefer cash with no restriction.
Yang is essentially pledging to offer welfare recipients lower lump sums in exchange for surrendering their claim on more lucrative benefit packages. He makes this
so obvious:
The means to pay for a Universal Basic Income will come from 4 sources:
1. Current spending. We currently spend between $500 and $600 billion a year on welfare programs, food stamps, disability and the like. This reduces the cost of Universal Basic Income because people already receiving benefits would have a choice but would be ineligible to receive the full $1,000 in addition to current benefits.
Yang is openly promising not to increase the amount which low income Americans receive, which means these people would not receive any relief from the pressure to seek employment at all. Beyond this, he is pledging to pay for the remaining cost with a VAT–this is a regressive sales tax, which hits poor and low income people disproportionately hard. That means that low income Americans won’t receive a benefits increase but will be subject to a 10% VAT. Because low income Americans consume virtually all of their income, this proposal renders them net
losers. So not only does Yang hope to cut benefits for poor people, he also wants to make them pay for the program with regressive taxes. Combined, these features
increase the pressure on poor people to work.
https://benjaminstudebaker.com/2019/03/20/andrew-yangs-basic-income-is-stealth-welfare-reform/