Monthly checks for the low income, the exciting concept floating around to put massive cash payments into the pockets of the low income on an ongoing monthly basis. I have all the details for you on this topic. All right. Thank you so much. Let’s jump right into the video. All right. So this is actually a pretty exciting concept that is floating around out there once again.
In fact, as I’ve been doing my research, I’ve come across this a couple of times and I want to lay it out for you on this topic. Now, this is actually a concept that’s been around for many, many decades. It’s been floating around out there. But now that we have all of these guaranteed basic income programs popping up, in other words, monthly checks on an ongoing basis for long periods of time focused on the low income, this is another one of those ideas that is popping up once again and actually getting a lot of traction and support for it. So I want to lay it out for you in this video and actually give you some examples of what this would actually look like.
All right. So kind of the basic idea behind this is a reverse tax or like a negative tax. So you might be wondering what does that actually mean? Let me lay this out for you a little bit more clearly. So I think all of us recognize how taxes work, right?
Maybe you have an income and they tax a percentage of it. You go out to the store and you spend some money and they tax you a certain percentage, right? Basically paying money into the state or the federal government, mostly the federal government. And it’s a percentage based on our income, how much we spend at a store, purchases, things like this. It’s all based on a percentage, right?
So that’s how a tax works. We all understand this, right? We all pay taxes to some degree on pretty much everything, right? However, when it comes to a reverse tax or a negative tax, basically it works the opposite direction. The IRS sends us money.
Sounds like a pretty cool concept, right? I like it. Sounds like a pretty cool thing. But let me lay it out a little bit more clearly because that’s one element of how this whole thing is actually being laid out for us. So what it comes down to is the idea by economists and the people who are actually presenting these ideas are basically saying this right here, right now, in 2022, the annual median household income in this country is just below $70,000.
So basically, the idea behind this is to lay it all out and make sure that everybody is brought up to the median household income, again, roughly $70,000. It’s a little bit less than that. But just for rounding purposes, I’m just saying $70,000 just to make it a nice round number for it. It’s a little less. It’s like 69,000 and some change.
But I’m just saying, let’s just use $70,000. So what the idea behind this is bring everybody up to the median household income, again, $70,000 as of right now. So here’s how this whole thing would lay out. And again, they would want to do this on an ongoing monthly basis. So let me give you some quick examples.
Basically, what they do is they look at the income of everybody and they say, anybody under the median household income, again, $70,000, we would be bringing these individuals up to the median household income by sending them a monthly check on an ongoing monthly basis. So let’s just lay this out here a little bit more clearly. So let’s just say, for example, somebody works a job and they earn $20,000 or somebody earns monthly income from a program like Social Security retirement, SSDI survivors, SSI, VA, RRB. It doesn’t matter. Income is income.
Right? But anyway, let’s just say that income on an ongoing annual basis is $20,000. Now I get it. A lot of people who receive monthly benefits of Social Security, SSDI, things like this, it’s not $20,000 for the vast majority of people. I’m just using $20,000 as a quick example just to kind of better layout this example here.
So basically what they do is they look at the income and say, okay, based on your earnings, you have an annual income of $20,000. Now we want to bring everybody up to the median household income, which is $70,000. So here’s what we’re going to do. We’re going to take $70,000, which is where we want you to be. We’re going to minus off your other income, which is $20,000, again from this example. And then they say we’re going to fill in the gap with $50,000 of income from the IRS sent out to these individuals on an ongoing monthly basis. Not a one-time lump sum payment, but rather monthly payments going forward. So like monthly stipends. So I did run the math on that, and it basically comes out to about $4,100 every single month. Going forward for the entire year to bring somebody up in this exact example, up to that $70,000 of median household income. Kind of makes sense about that.
Now, here’s the caveat. If in this example, let’s just say that the IRS or whoever calculates this information, calculates it and say, okay, we’re going to give you $4,100, $4,100 per month on an ongoing basis for the entire year to bring you up to the median household income. But let’s just say throughout the course of the year, your income jumps up and you make $75,000. They’re going to look at it at the end of the year and say, oh, it looks like we gave you a little bit too much.
We overpaid by $5,000 because your income went above the median household income and we were giving you those monthly stipends. We need to come back in now and take $5,000 back get what I’m saying. So there would be a little bit of negative behind this, but for the most part, it would be a pretty cool concept. Now, again, I just have to be very clear about this. Of course, this is just another one of those concepts that is floating around out there.
No promises that anything like this would actually happen. Or if it did, it’s certainly not going to be happening anytime soon. However, why I wanted to leave this out for you is because, first off, this is actually one of these ideas that’s been floating around for a very, very long time. In fact, this idea was originally coined by two very, very big names. And I’m pretty sure a lot of us here in the community already know these people, Martin Luther King, Jr., And Milton Friedman. Right. Two very, very big people who were very influential years past. So these are the people who actually said we’ve got to look out for the lower-income and make sure that these individuals are brought up to the median household income. That’s where these ideas actually originated from.
So it’s just one of those concepts out there. Again, especially during a time right now when we’re seeing all of these guaranteed basic income programs popping up all over the country. In other words, monthly checks on an ongoing basis for the low income. So very interesting to see this idea coming up once again. Now, will this ever happen?
Honestly, I have no clue. I’m not going to go out on a limb and say, yeah, for sure this is going to happen. I’m simply telling you this is just another one of these ideas that is being tossed around, floating around out there that they’re actually exploring to think, what can we do to help out the low income? Now, if I actually had to put bets on it and say, okay, out of all these ideas out there, what’s actually going to happen? I’d probably put this one near the end of the list, even though it’s a really cool concept.
Honestly, I think the first step before we jump into it and start sending everybody $70,000 a year, honestly, I would believe something more along the lines of bringing everybody up to at least the federal poverty line would probably be the next step in this process before they just start running out and sending out $70,000 in checks every single year, you know what I mean? So my point is, I’m not saying it’s totally off the table, but at the same time, let’s be realistic at the same time and be like, okay, is this really going to happen? Well, I mean, it could someday. But realistically, something that would be much more likely would be probably ongoing monthly checks, maybe in the amount of $500, $1,000, maybe one $200, maybe one $500. Who knows?
Something like that, I think in my honest opinion, would probably be way more realistic to start anyway. I don’t think they’d jump right into it and say, okay, $5,000 for everybody going forward. That’d be amazing. But at the same time, it’s just not all that realistic to start. But again, during a time when guaranteed basic income is becoming very popular, it’s just one of these things we got to examine a little bit more closely.
Now, remember, as of late 2019, guaranteed basic income almost wasn’t even a thing. Of course, it was an idea. It was a concept. It was something that people knew about. But for the most part, here in the United States, guaranteed basic income essentially wasn’t even a thought or a consideration in the United States up until late 2019, when that first guaranteed basic income program was launched in Stockton, California.
That’s what kicked it off. And ever since then, it’s just been accelerating. You’ve seen here, if you’ve been watching for the videos for a while now, you know that I come back on a pretty regular basis and I tell you, okay, here’s the new program. This group of people in this city, this state, this county, this location is going to be getting $500 per month for the next two years. And here’s how you can apply.
We’ve talked about some of these programs. In fact, around the country right now, there are tons of these programs and there are many, many more to come, especially right now when States are flush with billions and billions of dollars of cash and they honestly don’t know what to do with it. So they’re making all these programs and they’re sending out to the low income as well as doing all their little projects. But my point is these programs are going to become much more popular and they’re going to be coming up everywhere, all around the country. And then it’s only a matter of time until we get one of these on a nationwide level.