As an alternative to the Universal Basic Income, I'm proposing a Targeted Basic Income (TBI) that would effectively address poverty, volatility of income, job instability, and insufficient social mobility while encouraging labor market participation and increasing labor productivity, all at minimal expense to the taxpayer. This TBI would provide $1000/month up to six years total (minimum one month at a time) for adults enrolled at least part-time in postsecondary training and education programs, from ESL classes to apprenticeships to graduate school. The benefit would not be means-tested, so recipients could work as much as they want without jeopardizing their BI payments. See An Affordable Basic Income That Alleviates Poverty and Promotes Social Mobility for more details on the basic proposal.
Long story short: my beautiful Targeted Basic Income (TBI) would mostly be paid for through elimination of some government programs, as well as reduced eligibility and demand for other programs, most of which are means-tested and less generous than the TBI. Here they are, with some pertinent information:
Pell Grants - the average Federal Pell Grant in 2016-17 was $3,954; maximum Pell Grant for 2018–19 will be $6,095. https://studentaid.ed.gov/sa/about/announcements/pell-2018-19
Federal Student Loans - the average annual Federal Student Loan for undergraduates in 2016-17 was $6,590 https://trends.collegeboard.org/student-aid/figures-tables/number-federal-subsidized-and-unsubsidized-loan-borrowers-over-time
Supplemental Security Income - the current SSI benefit is $750/month, but it gets cut if other income above $85. https://www.ssa.gov/oact/cola/SSI.html
Social Security Disability Income - the average SSDI benefit is about $1200/month, but jeopardized if earnings or hours worked above a limited threshold. https://www.disabilitysecrets.com/how-much-in-ssd.html
State Disability Insurance - only 4 states have mandatory state disability programs: California, Hawaii, New Jersey, New York, and Rhode Island. SDI benefits range from $20 to $1,129 a week. https://eligibility.com/state-disability-insurance
Temporary Assistance for Needy Families - the TANF benefit varies from state to state. In 2016, a family of three received $170 per month in Mississippi and $923 per month in Alaska https://singlemotherguide.com/temporary-cash-assistance-for-the-poor/
Earned Income Tax Credit - the EITC boosted wages in 2016 by about $265/month for a family with children and $295 for a family without children https://www.cbpp.org/research/federal-tax/policy-basics-the-earned-income-tax-credit
Supplemental Nutrition Assistance Program - the average SNAP benefit per person in 2018 is $134/month https://www.cbpp.org/research/food-assistance/a-quick-guide-to-snap-eligibility-and-benefits
Unemployment Insurance - the UI benefit varies from state to state; in 2018 the average weekly UI benefit was $235 in Mississippi and $330 California. https://mdes.ms.gov/unemployment-claims/benefit-information/benefit-eligibility-requirements/ https://www.edd.ca.gov/about_edd/quick_statistics.htm
Ok! The total TBI budget would be $567 billion, including 5% administration costs and based on an assumption that in any given year the equivalent* of 45 million Americans would avail themselves of the benefit for the entire year. Here's where the money would come from:
A few points. I assumed that the number of SSI and SSDI beneficiaries would go way down, because even part-time work jeopardizes continuing eligibility for these benefits. The chance to earn more money would be an incentive to go for the TBI instead of pursuing disability benefits, especially given that TBI participation requirements would be compatible with many disabilities, e.g., flexible, self-paced online training with time spent on homework counting towards the overall time requirement. Having worked with hundreds of disabled adults, I'm fairly confident a lot of disabled people would be interested in a TBI, not only because it would provide a more generous benefit for a good number of them but because of the opportunity to supplement their BI with a little part-time work/occasional gig as their physical or psychological limitations allow.
As for the tax part of funding, note that middle and higher income recipients whose TBI benefit is taxed would still receive a net BI of $700 and $600 a month after taxes, respectively - which is still a lot higher than Pell grants. And the 76 million middle and higher income households paying additional taxes to fund the TBI would usually include members (e.g., younger selves, children) who have benefited or will benefit from the TBI, lessening the sting of higher taxes. Plus, these additional taxes wouldn't be all that much higher - averaging about $2000 a year overall, but more like $500 a year for the middle-income households. Who knows? The prospect of paying somewhat higher taxes may encourage household members to take a few classes every year to qualify for the TBI, which would not only pay for the extra taxes but build skills to move up the socioeconomic ladder even more.
It's a start.
* Based on enrollment figures for colleges, adult schools, non-profit training programs, etc., I estimated roughly 38 million adults enroll in postsecondary education and training a year in the US. Of course, not all are year-round students. The TBI figure of 45 million year-round recipients is a mathematical convenience - it has the same value as 90 million half-year students a year ($540 billion + 5% administration costs = $567 billion).