Abstract:
Background:
Income inequalities and social issues faced by modern day societies are worrisome. The notion of universal basic income (UBI) is described as unconditional cash payments made to all citizens of a country irrespective of their social stance and is aimed at alleviating poverty and restoring income inequalities (Haagh, 1986).
Main purpose of study:
The main purpose of this study is to systematically explore the existing body of literature related to UBI and tax systems and its potential to combat social issues such as poverty and inequality. In addition, this study, in conjunction with other literature, will elaborate on the advantages, disadvantages, funding and feasibility of UBI through tax systems to reduce poverty and inequality in modern day society.
Method:
The study used a qualitative research method. A systematic review of historical data was done to find existing literature appropriate to the study. The research design of the present study followed a pragmatist approach, was descriptive and causal in nature, and was inductive.
Findings:
The findings of this study showed that UBI is mainly aimed at low-income groups and individual tax payers and the focus was not on any specific country. The study found that the introduction of new taxes were most favourable as a funding mechanism of UBI. Most of the existing body of literature studied the advantages of UBI and not its disadvantages.
Conclusions:
The case for UBI is overwhelming as its strengths clearly compensate for its limited drawbacks. Furthermore, the funding options of UBI prove to be credible and make it attainable for both developed and developing countries. As a result, UBI can unquestionably be used as a tool to combat social injustices.
