The Global Corporate Challenge of Funding a Universal Basic Income Through a 10% UBI Tax

"There's not enough cash in the world to enable UBI—more wealth must be created, not redistributed." ~ LDMF

The idea of a Universal Basic Income (UBI) has gained significant traction as a potential solution to economic inequality and the need for a safety net in an increasingly automated and globalized world. However, the challenge of funding a UBI that provides a comfortable standard of living for all world citizens remains daunting. This article explores the feasibility of achieving a Global UBI at the level required to match the cost of living in Switzerland—a standard of $63,000 per person per year—through a 10% UBI tax on corporate profits. We will also examine the gap between current corporate profitability and the required funding levels, and discuss the implications for global entrepreneurship and economic policy.

The UBI Funding Proposal: A 10% Corporate Tax

To consider a global UBI, we propose a 10% UBI tax on corporate profits. This tax would be specifically earmarked for funding the UBI, and in return, governments would reduce or eliminate certain income, value-added (VAT), and property taxes to offset the cost to businesses. The theory is that this would increase corporate profitability, creating a positive feedback loop that would help close the UBI funding gap over time.

Step 1: Calculating the Required UBI Funding

First, let's calculate the total funding required to provide a $63,000 annual UBI to every person on the planet, including newborns:

• Global Population (2024 estimate): ~8.13 billion people
• Total Annual UBI Cost: 8.13×63,000=511.19?trillion?USD?per?year8.13 \times 63,000 = 511.19 \text{ trillion USD per year}8.13×63,000=511.19?trillion?USD?per?year

This means the total annual cost of UBI at the Swiss standard of living is approximately $511.19 trillion USD.

Step 2: Estimating the Revenue from a 10% UBI Tax on Corporate Profits

To assess the potential revenue from the proposed UBI tax:

• 2023 Estimated Global Corporate Profits: ~$9.51 trillion USD
• 10% UBI Tax Revenue: 9.51×0.10=0.951?trillion?USD?per?year9.51 \times 0.10 = 0.951 \text{ trillion USD per year}9.51×0.10=0.951?trillion?USD?per?year

Given current corporate profits, a 10% UBI tax would generate approximately $951 billion USD per year.

Step 3: Analyzing the Funding Gap

The Shortfall

With the annual UBI requirement at $511.19 trillion USD and the UBI tax generating only $951 billion USD annually, the shortfall is stark:

511.19?trillion?USD?0.951?trillion?USD=510.239?trillion?USD?shortfall?annually511.19 \text{ trillion USD} - 0.951 \text{ trillion USD} = 510.239 \text{ trillion USD shortfall annually}511.19?trillion?USD?0.951?trillion?USD=510.239?trillion?USD?shortfall?annually

Percentage of UBI Covered:

0.951511.19×100≈0.19%\frac{0.951}{511.19} \times 100 \approx 0.19\%511.190.951×100≈0.19%

This calculation shows that the 10% UBI tax would cover only about 0.19% of the annual funding required for a global UBI at the desired standard of living. The remaining 99.81% would be unfunded.

Step 4: The Impact of Tax Offsets on Corporate Profitability

The proposal to reduce income, VAT, and property taxes in exchange for the UBI tax aims to mitigate the burden on corporations. In theory, this could:

1. Increase Corporate Profits: With lower taxes, businesses would retain more earnings, potentially leading to higher profits and, consequently, higher UBI tax contributions in subsequent years.
2. Boost Economic Growth: Reduced tax burdens could encourage entrepreneurship, innovation, and business expansion, creating more wealth and contributing to higher tax revenues.

However, even with these benefits, the gap remains enormous. The growth in corporate profits would need to be exponential to close the shortfall. Currently, global corporate profits would need to increase by more than 500 times to fully fund the UBI under the 10% tax model.

Conclusion: The Need for More Entrepreneurs and Better Business Models

The analysis demonstrates that while a 10% UBI tax on corporate profits could contribute to funding a global UBI, it falls significantly short of the required amount. This gap underscores the need for not only more entrepreneurs but also better, more innovative business models that can generate higher profits while being socially and environmentally sustainable. The future of UBI may depend on a global economic environment that encourages high levels of entrepreneurship and business success. In addition, international cooperation and the development of new financial instruments or mechanisms to redistribute wealth more effectively might be necessary.

The Role of Money Supply in Supporting UBI and Business Growth

Over the past century, the global money supply has expanded dramatically, particularly in the wake of financial crises and during periods of economic stimulus. As of 2023, the global money supply, including all forms of currency, is estimated to be in the range of $95 to $100 trillion USD (M1 money supply). This includes physical currency, demand deposits, and other liquid forms of money.

Despite this large sum, it pales in comparison to the amount needed to fund a UBI at the Swiss standard of living. However, the availability of money is not the only factor; its velocity (how quickly money circulates through the economy) and its distribution are also critical. The challenge is not merely about printing more money but about ensuring that money is used productively to create wealth and improve living standards globally.

In conclusion, while the current global money supply could theoretically support significant economic activity and growth, it is insufficient on its own to fund a UBI at the desired level. Achieving such an ambitious goal would require a combination of increased corporate profitability, innovative financial policies, and a more equitable distribution of wealth. The path forward involves not only creating more money but also ensuring that it is utilized in ways that drive sustainable business success and economic well-being for all.

The Feasibility of Global Governments Creating a $511.19 Trillion USD Surplus: Analyzing Economic Realities and Debt Challenges

Introduction

The idea of global governments uniting to create an annual surplus of $511.19 trillion USD to fund ambitious initiatives such as a Universal Basic Income (UBI) or other global welfare programs seems, at first glance, both visionary and idealistic. However, when scrutinized through the lens of economic realities, the feasibility of such a colossal surplus becomes increasingly doubtful. This article explores the financial challenges faced by global governments, including chronic deficits, mounting debts, and the limited availability of global cash. It also raises the question of whether alternative solutions might be more realistic or necessary.

The Chronic Deficit Problem of Global Governments

1. Historical Deficits in the Last Decade

Over the past decade, governments worldwide have consistently run deficits, meaning that their expenditures have exceeded their revenues year after year. These deficits have been driven by a combination of factors, including increased spending on social programs, defense, and interest payments on existing debt, as well as lower-than-expected tax revenues due to economic slowdowns and other challenges.

For example, in the United States, the federal budget deficit has remained above $1 trillion annually for several years, reaching a peak of nearly $3.1 trillion in 2020 due to the economic impact of the COVID-19 pandemic. Similarly, many European countries have struggled with significant budget shortfalls, often exacerbated by austerity measures and slow economic growth. The trend is similar across other regions, where developing countries face deficits due to limited tax bases and high spending on infrastructure and social welfare.

2. Projected Deficits for the Coming Decade

Looking ahead, the outlook for government budgets remains grim. The International Monetary Fund (IMF) and other financial institutions project that deficits will persist or even worsen in the coming decade. The reasons for this include:

• Rising Healthcare Costs: Aging populations in developed countries will lead to increased spending on healthcare and pensions.
• Climate Change Mitigation: Investments in infrastructure to combat climate change will require substantial public funds.
• Debt Servicing: As government debt levels rise, so too will the cost of servicing that debt, further straining budgets.
• Economic Uncertainty: Ongoing economic uncertainties, including the risk of recessions, will likely suppress tax revenues and increase the need for government spending.

Given these factors, the idea of governments not only balancing their budgets but generating a surplus of $511.19 trillion USD annually seems far beyond reach.

Global Debt: A Major Hindrance to Surplus Creation

1. Overview of Global Debt

As of 2023, the total global debt—encompassing government, corporate, and private debt—stood at an astronomical $307 trillion USD. This debt is spread across various sectors:

• Government Debt: Approximately $77 trillion USD.
• Corporate Debt: Around $86 trillion USD.
• Private Debt (Households): Close to $51 trillion USD.
• Financial Sector Debt: Including debt to banks and other financial institutions, this accounts for around $93 trillion USD.

These figures reveal a world heavily burdened by debt, which serves as a major hindrance to any effort to generate large fiscal surpluses.

2. Debt in Comparison to Global Cash Supply

When comparing this debt to the total global money supply, the disparity becomes even more apparent. The global money supply, including all physical currency and highly liquid assets, is estimated to be between $95 trillion and $100 trillion USD. This means that the total global debt is more than three times the total amount of cash available.

This comparison underscores the severity of the debt issue: even if governments and corporations were to liquidate all available cash, it would still fall far short of covering existing debts. The sheer scale of global indebtedness makes the idea of generating a $511.19 trillion USD surplus even more implausible, as much of any potential surplus would likely be needed just to service existing debt.

The Impossibility of Surplus Creation and Potential Alternatives

1. Why Surplus Creation Is Unrealistic

Given the chronic deficits, rising expenditures, and the staggering levels of global debt, the notion of global governments uniting to create a $511.19 trillion USD surplus annually appears not only unrealistic but impossible under current economic conditions. The necessary fiscal discipline, economic growth, and political will to achieve such a surplus are lacking in most countries, and the global economic system is not structured to support such a feat.

2. Exploring Alternative Options

If creating such a surplus is out of the question, what other options might exist for achieving ambitious global goals like UBI or significant investments in social welfare and climate change mitigation?

• Public-Private Partnerships: Governments could collaborate with corporations and private entities to fund large-scale initiatives. These partnerships could leverage the efficiency and innovation of the private sector while utilizing public resources to achieve broader social goals.
• Monetary Innovation: Central banks could explore the issuance of digital currencies or other innovative financial instruments that could increase the money supply without causing inflation. However, this approach would need to be carefully managed to avoid destabilizing economies.
• Debt Restructuring: Governments and financial institutions could pursue strategies to restructure or reduce global debt, freeing up resources that could be redirected toward surplus creation or social spending.

Conclusion: The Limits of Governmental Surplus Creation

In conclusion, the idea of global governments creating a $511.19 trillion USD annual surplus is not feasible given the current economic landscape. Chronic deficits, massive debt levels, and the limited availability of cash all combine to make such an effort virtually impossible. As a result, alternative approaches—such as public-private partnerships, monetary innovation, wealth redistribution, and debt restructuring—may offer more realistic pathways to achieving global economic and social goals.

The question remains: can these alternatives be effectively implemented, or will the world continue to struggle under the weight of its economic challenges? As we move forward, it is clear that new and creative solutions will be required to address the pressing issues of our time, including the potential for UBI and other transformative social policies.

Why Global Corporations Are Better Positioned Than Governments to Fund a Universal Basic Income

Introduction

The concept of a Universal Basic Income (UBI) has gained considerable attention as a potential solution to global inequality and economic insecurity. However, funding a UBI at a level that ensures a comfortable quality of life for everyone on the planet remains a formidable challenge. While governments are traditionally viewed as the primary agents of social welfare, there is a compelling argument that global corporations, with their vast resources and efficiency, may be better positioned to achieve this ambitious goal. This article explores why global corporations might be more capable than governments in funding and implementing a global UBI.

The Flexibility and Efficiency of Global Corporations

1. Profit-Driven Incentives

Global corporations operate in a highly competitive environment, where efficiency and innovation are key to survival. Unlike governments, which often face bureaucratic inertia and political constraints, corporations are driven by the need to maximize profits. This profit motive compels them to constantly seek out new markets, improve efficiency, and innovate, making them more adaptable to changing economic conditions.

This adaptability is crucial when considering the funding of a UBI. Corporations have the ability to rapidly scale successful business models, invest in emerging technologies, and enter new markets, all of which can drive up profits. A 10% UBI tax on corporate profits, as proposed, would be more likely to grow over time as these companies expand and become more profitable. Governments, by contrast, often struggle with budget deficits, debt, and political gridlock, which can hinder their ability to sustainably fund large-scale social programs like UBI.

2. Global Reach and Market Power

Many of the world’s largest corporations have revenues that exceed the GDPs of some countries. For example, companies like Apple, Amazon, and Microsoft operate on a global scale, generating billions in revenue across multiple continents. This global reach gives these corporations access to a much larger pool of resources than any single government.

This scale is important for funding a global UBI. With their extensive networks and market influence, global corporations are well-positioned to generate the necessary funds from diverse sources around the world. A government, on the other hand, is limited by its borders and can only tax within its jurisdiction. Even the most powerful governments would find it difficult to generate the required revenue without significant economic or political disruptions.

Governments' Challenges in Funding UBI

1. Limited Tax Base and Political Constraints

Governments face significant challenges when it comes to raising the revenue needed to fund a UBI. Taxing citizens and businesses more heavily can lead to economic inefficiencies, discourage investment, and drive businesses and wealthy individuals to relocate to lower-tax jurisdictions. Moreover, tax increases are often politically unpopular, making it difficult for governments to enact the necessary fiscal policies to fund a UBI.

In contrast, a global corporation, operating under a 10% UBI tax, would be incentivized to continue growing its profits to offset the tax burden. By reducing other taxes, as proposed, governments could even make this an attractive proposition for corporations, further aligning corporate growth with social welfare goals.

2. Bureaucracy and Inefficiency

Government programs are often plagued by bureaucracy, inefficiency, and a lack of innovation. The complex layers of government can slow down decision-making processes and lead to wasteful spending. In contrast, corporations, driven by competition and profit, are typically more streamlined and efficient in their operations.

This difference in efficiency could be critical in the successful implementation of a UBI. Corporations, with their leaner structures and focus on results, could potentially deliver the necessary funds more effectively and with less waste than government programs. Furthermore, corporations are better equipped to leverage technology and data analytics to optimize the distribution of UBI payments, ensuring that funds reach those who need them most.

The Potential for a New Social Contract

1. Corporations as Drivers of Social Change

As global corporations become more powerful and influential, there is growing recognition of their role in addressing social issues. Many corporations are already involved in corporate social responsibility (CSR) initiatives, investing in education, healthcare, and other areas that contribute to social welfare. By taking on the responsibility of funding a UBI, corporations could further strengthen their role as key drivers of social change.

This shift could represent a new social contract, where corporations contribute directly to the well-being of citizens in exchange for a more favorable business environment. By reducing other taxes and creating a more supportive regulatory framework, governments can encourage corporations to take on this role, leading to a more equitable distribution of wealth and a more stable global economy.

2. Innovation and Entrepreneurship

Corporations are not just better positioned to fund a UBI; they are also better equipped to create the conditions necessary for its success. By fostering innovation and entrepreneurship, corporations can drive economic growth and create new opportunities for wealth creation. This is particularly important in the context of a UBI, as a vibrant, dynamic economy will be essential to sustaining the program in the long term.

Governments, with their slower pace of change and focus on regulation, may struggle to keep up with the rapid pace of technological advancement and economic shifts. In contrast, corporations, driven by the need to stay competitive, are constantly innovating and adapting to new market conditions. This makes them better suited to supporting the economic environment needed for a successful UBI.

Conclusion: The Corporate Advantage in Achieving UBI

In conclusion, while the goal of providing a Universal Basic Income at a comfortable standard of living is a daunting one, global corporations are arguably better positioned than governments to achieve this milestone. With their profit-driven incentives, global reach, and capacity for innovation, corporations can generate the necessary funds more efficiently and effectively than governments can. By embracing a new social contract and leveraging their strengths, corporations could play a pivotal role in creating a more equitable and prosperous world.

The Role of Money Supply in UBI and Corporate Growth

To support this vision, it’s also important to consider the global money supply. As of 2023, the total global money supply, including physical currency and liquid assets, is estimated to be between $95 and $100 trillion USD. While this amount is significant, it is far from sufficient to cover the full cost of a global UBI at the Swiss standard of living. However, if managed effectively, this money supply could be leveraged to drive economic growth and support the expansion of corporate profits, which in turn could fund the UBI.

The key lies in ensuring that money is used to fuel productive investment, innovation, and entrepreneurship. If global corporations can harness this capital and continue to grow their profits, the gap between current funding levels and the required UBI funding could gradually close. The combination of increased corporate profitability and a strategic use of the global money supply could make the dream of a global UBI a reality, highlighting once again the pivotal role of corporations in shaping the future of social welfare.

The Interplay of Holistic Wealth, Entrepreneurial Freedom, and Universal Basic Income in a New Global Culture

Introduction

In an increasingly interconnected and rapidly changing world, the traditional concepts of wealth, work, and purpose are evolving. The rise of automation, globalization, and digital transformation has spurred a rethinking of how we define success and fulfillment. At the heart of this transformation lies a new triad of concepts: holistic wealth, entrepreneurial freedom, and Universal Basic Income (UBI). These ideas, when harmonized, have the potential to foster a global culture centered on leadership, innovation, entrepreneurship, and a holistic quality of life. This article explores how these concepts intersect and support a purpose-driven lifestyle that can redefine the future of work and society.

Holistic Wealth: Beyond Material Accumulation

1. Redefining Wealth in the Modern Era

Holistic wealth transcends the traditional notion of wealth as mere financial accumulation. It encompasses a more comprehensive understanding of well-being, including physical health, mental and emotional balance, social connections, and a sense of purpose. In this framework, true wealth is not just about having more money or possessions but about achieving a state of overall well-being that allows individuals to lead fulfilling lives.

This shift in perspective is crucial as the world grapples with issues like income inequality, environmental degradation, and social fragmentation. By prioritizing holistic wealth, individuals and societies can focus on creating value that benefits not just themselves but also their communities and the planet. This broader view of wealth aligns with the growing awareness of the need for sustainability and the importance of quality of life.

2. The Role of UBI in Supporting Holistic Wealth

Universal Basic Income, as a guaranteed financial support for all citizens, can be a powerful tool in promoting holistic wealth. By providing a stable financial foundation, UBI frees individuals from the constant pressure of survival, allowing them to pursue personal development, creativity, and meaningful work. This financial security enables people to invest in their health, education, and relationships, which are key components of holistic wealth.

Moreover, UBI can reduce the stress and anxiety associated with economic insecurity, leading to better mental health and overall well-being. By decoupling basic financial security from employment, UBI empowers individuals to make choices that align with their values and aspirations, rather than being driven solely by the need to earn a living.

Entrepreneurial Freedom: Unleashing Human Potential

1. The Power of Entrepreneurship

Entrepreneurial freedom is the ability to innovate, take risks, and create value in the marketplace without undue constraints. It is the engine of economic growth and innovation, driving progress in technology, business, and society. Entrepreneurs are often seen as the pioneers of change, pushing the boundaries of what is possible and leading the way in solving complex global challenges.

In a world where technological advancements are rapidly changing the landscape of work, entrepreneurial freedom is more important than ever. It allows individuals to experiment with new ideas, start businesses, and contribute to the economy in ways that are aligned with their passions and skills. This freedom is not just about economic success; it is about empowering individuals to shape their own destinies and contribute to the greater good.

2. UBI as a Catalyst for Entrepreneurship

Universal Basic Income can play a critical role in fostering entrepreneurial freedom. By providing a financial safety net, UBI reduces the risks associated with entrepreneurship, making it more accessible to a broader range of people. It allows individuals to experiment with new ideas without the fear of financial ruin, encouraging more innovation and creativity.

With UBI in place, more people can afford to take the leap into entrepreneurship, knowing that their basic needs are covered. This democratization of entrepreneurship can lead to a more diverse and inclusive economy, where innovation is driven by a wider range of perspectives and experiences. UBI, therefore, not only supports individual freedom but also contributes to a more dynamic and resilient economy.

A Global Culture of Leadership, Innovation, and Purpose

1. The Emergence of a Purpose-Driven Lifestyle

As the concepts of holistic wealth and entrepreneurial freedom gain traction, they pave the way for a global culture that values leadership, innovation, and purpose. In this culture, individuals are encouraged to pursue not just economic success but also personal growth, social impact, and environmental stewardship. This shift reflects a deeper understanding of what it means to live a meaningful life in the 21st century.

UBI can be a key enabler of this purpose-driven lifestyle. By providing financial security, UBI allows individuals to focus on what truly matters to them, whether that is starting a social enterprise, contributing to their communities, or pursuing lifelong learning. It supports a shift from a survival mindset to a thriving mindset, where individuals are free to explore their passions and make a positive impact on the world.

2. Leadership and Innovation in the New Economy

In a world supported by UBI, leadership and innovation take on new dimensions. Leaders are not just those who hold positions of power, but anyone who takes initiative to create positive change. Innovation is not just about technological breakthroughs but also about finding new ways to address social, environmental, and economic challenges.

UBI can help cultivate this culture of leadership and innovation by providing the stability and resources needed to explore new ideas and take bold actions. When people are not constrained by financial worries, they are more likely to take risks, collaborate, and push boundaries. This can lead to a flourishing of creativity and problem-solving that benefits society as a whole.

Conclusion: Harmonizing UBI, Holistic Wealth, and Entrepreneurial Freedom

The intersection of holistic wealth, entrepreneurial freedom, and Universal Basic Income offers a powerful framework for reimagining the future of work and society. UBI, by providing financial security, can enable individuals to focus on achieving holistic wealth and exercising entrepreneurial freedom. This, in turn, can lead to the emergence of a global culture that values leadership, innovation, and purpose-driven living.

In this new paradigm, success is not measured solely by financial gain but by the ability to lead a meaningful and fulfilling life that contributes to the well-being of others and the planet. UBI, as a foundational element of this culture, can support the development of a more inclusive, innovative, and purpose-driven global community. By embracing these principles, we can create a world where everyone has the opportunity to thrive and contribute to a better future for all.

Founder: Luis Daniel Maldonado Fonken

Meet Luis Daniel Maldonado Fonken, a visionary innovator, creator of the Matrix-Q tools, designer of Matrix-Q AI, and facilitator of the Matrix-Q AI Operators Training Program. With over 30 years of experience as a coach and trainer, Luis Daniel is a recognized expert in the fields of personal and professional development. His passion for integrating ancient wisdom with modern science and technology has led to the development of a unique coaching methodology that combines the power of the handpan, frequencies, emotional intelligence, gamified challenges, and holistic learning techniques.

Join us on this transformative journey led by Luis Daniel Maldonado Fonken and unlock the power of purpose within you. Visit the Matrix-Q Academy and Matrix-Q Studio today.

www.matrix-q.studio

#universalnonconditionalincome #UBI #Corporate #CollectivePricing #lifelessons #SummerSpecial #luisdanielmaldonadofonken #matrixqstudio #matrixq #PrimordialKnowledge #Geometry #CommunityOfPractice #TransformativeJourney #HolisticLearning #GroupDiscounts #ResilientCommunity #ImmersiveTraining #InvestInYourself #GroupGrowth #LearningTogether #CommunityBuilding #MatrixQPeaceStudio #HolisticExploration #PrimordialKnowledge #GeometryOfPeace #UniversalLanguage #GlobalUnity #BridgeForPeace #CulturalIntegration #AncientWisdom #FutureInnovations #SelfEducation #PeaceBuilding #HumanPotential #PurposeDriven #HolisticLearning #KnowledgeSeekers #InnovateForPeace #TransformativeJourney #BiohackersForPeace #UnifiedKnowledge #newcommodity #tokenization #humandna #humandatastorage #digitalcommodity #noncognitivelearning ??