Michael Tubbs, The mayor of Stockton, California has made a plan to challenge poverty in his city. This “no strings” basic income of $500 a month for its residents will come at the expense of tax payers who earn above $250,000 per year.
Starting in early 2019 a select group of residents will receive a stipend. This is a part of a privately funded 18-month experiment to analyze how people use the money.
“And then, maybe, in two or three years, we can have a much more informed discussion about the social safety net, the income floor people deserve and the best way to do it because we’ll have more data and research,” Tubbs told Reuters.
This project is funded by the Economic Security Project, a philanthropic network. This movement is co- chaired by Chris Hughes, co-founder of Facebook. It is still undecided how many people will get income from this trial project. The Economic Security Project will sponsor $1 million to fund the Stockton trial after approaching Tubbs to ask if his city would be interested in piloting a basic income program.
Hughes, has proposed the U.S. government give a guaranteed income of $500 a month to every working American earning less than $50,000 a year. This would come to a grand total of approximately $290 billion a year. He says a 50-percent tax rate on income and capital gains for Americans earning more than $250,000 would pay for it.