Could Using Marijuana Taxes For Universal Income Programs In New Jersey Reduce Recidivism?
States With Legal Recreational Marijuana Made $2.7 Billion in Tax Revenue Last Year. It’s possible.
That’s a lot of money that could go towards whatever purpose the state wishes. In states like New Jersey, thats as many as $150 million dollars going towards education, healthcare and other social services.
In this article we’ll discuss the benefits of using marijuana taxes to create universal income programs for those most in need. Why? One reason is that it would bring a more sustainable funding structure to these programs without relying on outdated tax structures or budgetary fights from legislators who have different priorities from their citizens.
Another reason is that state marijuana taxes seem to have a behavioral effect like public works employment initiatives of the 50s. And finally, it would help counter the most fundamental problem with the criminal justice system: recidivism.
Secondly and most importantly, universal income programs has proven to be a very effective crime deterrent measure that allows the government to allow people to pursue their dreams. Proponents of this are so critical that they’ve even gone as far as giving it a name: Basic Income (BI).
The Basic Income
In order to understand how this program would be effective for New Jersey, it’s important to understand what the basic income is. So here it goes:
“The BI aims to eradicate the day-to-day uncertainty of not knowing where your next meal will come from” .
The Basic Income concept can work in two ways: either as a direct cash grant or as an indirect cash grant (sometimes called a ‘negative income tax’).
The idea is that because so many citizens are in need of various social services, including healthcare, education and hunger services, allowing them a stipend of sorts could solve an enormous amount of social and criminal justice related problems. This is not just a pipe dream and it’s not just some wacky leftist idea that always ends up getting shot down by the GOP. It’s actually been implemented in several countries and has a very good chance of succeeding in other places. One of those places happens to be New Jersey where such legislation could be proposed as soon as next session.
Last December, the Rochester City Council approved a two-year guaranteed basic income pilot program that provides $500 a month to 175 families that live at or below 200% of the federal poverty line. The program would use funds from the American Rescue Plan. Evan has previously said he would approach philanthropists to see whether they could help the city expand the program.
Universal Income In Action
In the Netherlands, a handful of cities have started experimenting with universal income programs. The Netherlands is also an interesting case study because it’s where the American Rescue Plan (earlier mentioned) originated from. Here’s just one example:
“The pilot program is being championed by a coalition of Rotterdam politicians, who are planning to expand the program next year to all residents living below the poverty line, regardless of their employment status. A recent study of the program found that “the basic income was a significant driver of labor market participation.”
According to the study, “every unemployed citizen who participated could expect an increase in their employment earnings by at least 7% as a result of the Dutch system.” This rate is much higher than what is seen in wealthy nations, where about half of the poor who want a job get one.
In the United States, a handful of communities and states like Oakland, Seattle, and the state of Washington, have created a basic income experiment in the last year. The state of Hawaii is also considering setting up its own basic income scheme next year.
The wealth in a nation can be redistributed to make sure everyone has enough to live on. Giving people money to live on is more effective than giving them food stamps, vouchers or other forms of charity, because it gives them security and dignity. A Universal Basic Income would eliminate the uncertainty that most working class people are forced to work their entire lives under.
New Jersey would be the first state to pass a Basic Income in the United States. The prospect seems likely because New Jersey has had tremendous success with it’s Work First and TANF programs. These programs have truly changed the lives of tens of thousands of citizens who have come out of poverty, and are still working today thanks to these programs.
In fact, data shows that in the last decade, New Jersey is #1 in overall employment, #2 in income growth, and #7 in poverty reduction among all states. As an added bonus, it has the lowest cost of living in the nation.
The UBI could be one of the most effective solutions for New Jersey. Though this article focuses on universal income as a form of basic income, that doesn’t mean all programs must be cash grants. In fact, they could be much more creative and sophisticated.
