Turns case. UBI funded by wealth or income tax causes flight for the highest earners --- increases costs and turns the aff

First element is based on the assumption that the marginal tax rate on income above a certain threshold would increase what would have a negative substitution effect for people with higher earnings. In this case, a basic income scheme would have a negative effect not only on the supply of labour of people with higher earnings but also on their incentives to work hard and to keep educating and acquiring more skills (Ibid. 177). It can cause lack of workers with the ambition to be promoted and with a certain level of skills required for the position. A second element refers to the income effect. If people’s priority is to achieve and to maintain a certain level of income, once they receive a basic income their incentive to increase their level of income would be reduced, if their income is within a range in which the increase in income tax falls short (Ibid.). 25

Thereafter, people’s behaviour largely influences the economic sustainability of a basic income scheme. For example, there is the issue of immigration and emigration. Whether a basic income is implemented at the municipality level or at the country level, it does not avoid the issue of the opportunistic exit of net contributors to the basic income and the opportunistic entry of net beneficiaries from a basic income (Van Parijs 2013: 178). This problem also would not be caused simply by income differentials. There are other social factors that would affect people’s decision to stay or to immigrate, or to emigrate. It is the economists’ and sociologists’ job to research the appropriate approaches to a basic income that would address people’s concerns about economic unsustainability.

However, if many net contributors to the basic income would decide to leave the country, it would cause a major capital flight and disinvestment. Such a scenario could only happen if capital would be heavily taxed in order to fund a basic income and if there would be increases in cost of production due to higher wages (Wright 2000: 151). Therefore, it is advisable to carefully consider all the potential ways of funding a basic income. In order to minimize the negative impact on citizens’ behaviour, other sources of government revenue than income tax would be more preferable.