I'm lonely, and created a private CBDC
A tax is needed to raise the money for the UBI, and to keep the value and money supply stable. Income tax is unnecessary if you say money that&#x27;s sitting doing nothing will be taxed out of the system (basically a waste tax). The whole system is being taxed away at 1% per month to pay for the UBI. If you spend, lend, or invest your money as soon as you get it, you never pay taxes.<p>There&#x27;s a neat equilibrium here. UBI is put in, but slowly being taxed away while it sits. If your account is zero, you&#x27;re not paying any tax, and the account grows quicker. The more your account grows, the slower your account grows, and your account growth keeps slowing until it stops at equilibrium. The amount of UBI being put in matches the amount of tax being pulled out. It&#x27;s an advantage to use the money rather than save it, because you&#x27;re being taxed on less money.