Facebook co-founder Chris Hughes wants the richest 1% of Americans to fund a basic income for 90 million people

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February 20, 2018 8:51 PM

Hughes wants to give a $500 monthly stipend to 90 million Americans making less than $50,000 a year.

Facebook co-founder Chris Hughes wants to provide 90 million Americans with a monthly stipend of $500.
In a Reddit AMA, he explained that he would want to pay for this by raising taxes on the one percent.
He estimates that the program would cost just under $300 billion.

Chris Hughes, a co-founder of Facebook and chair of the Economic Security Project, has a proposal to attack the problem of rising income inequality through a basic income, And he wants to pay for it by raising taxes on the one percent.

In a Reddit Ask-Me-Anything session on Tuesday — the same day his new book, "Fair Shot" launched — Hughes explained how his proposal could be funded.

Hughes wants to give every American making less than $50,000 a year a monthly stipend of $500. This would affect 90 million people across the country, according to Hughes.

To pay for this, Hughes proposes bringing tax rates on the top 1% of earners in the country to 50% — which is in line with the historical average, he said. The idea is to provide people with a reliable income stream that can help provide financial stability. According to the Institute on Taxation and Economic Policy, the top 1% of earners paid a tax rate equivalent to around 34% of their income in 2017.

The income is designed to be a "supplement" to wages earned from working and the social security net, Hughes said. According to Hughes, this could help workers in the gig economy who have unreliable incomes and few benefits — that is, rideshare drivers, part-time workers, and freelance employees — have a predictable income stream.

The program would cost just under $300 billion, Hughes said.

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