If the Top 1% Paid Double in Taxes, How Much Could Every Citizen Receive in Universal Basic Income?
Written by
Sarah Sharkey
Edited by
Amen Oyiboke
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The idea of a Universal Basic Income (UBI) has gained popularity in recent years.
More Americans still oppose the idea of UBI than favor it, according to a 2020 study from the Pew Research Center. At the time, 54% of U.S. adults were opposed to the federal government providing a guaranteed income or UBI. But with changing times and increasing financial pressures, more Americans may be on board with the idea of a Universal Basic Income.
In terms of funding a UBI proposal, many point to taxing the rich. Here’s what this might look like.
What Do The Top 1% Pay in Income Taxes?
In 2022, the top 1% of income earners paid 40.4% of federal income taxes, according to the Tax Foundation. In terms of dollars, the top 1% of taxpayers paid $864 billion in income taxes.
Since the bottom 90% of taxpayers paid $599 billion in taxes, the top 1% of taxpayers paid a collective total equal to more than the bottom 90% combined.
How Much Tax Revenue Would Come From Doubling Taxes on the 1%?
If the top 1% paid twice as much in taxes, that would increase their total tax payments from $864 billion to $1.728 trillion.
How Much Could Every Citizen Receive?
As of November 2025, the U.S. population includes around 342 million people, according to the U.S. Census Bureau. If $1.73 trillion is distributed evenly across all citizens, the basic universal income would be $5,052 annually. Every month, this would work out to around $421.
Notably, this projection assumes that both the IRS could effectively collect the doubled tax burden from the 1% and that there wouldn’t be any administrative costs attached. But, as with most government programs, it’s reasonable to expect there would be some layer of administrative costs involved.
For example, the Social Security Administration spent 0.5% of its total budget on administrative costs in 2024. If the $1.73 trillion were subject to administrative costs totalling 0.5% of that income, that drops the total amount to distribute to citizens down to $1.64 trillion. When doling out the UBI, this would lead to approximately $4,800 in annual income for citizens, or $400 per month.
What Comes Next
Whether you are for or against the idea of a Universal Basic Income, the possibility of this becoming a reality has entered the psyche of public awareness. But as with many ideas, if it became a reality, it would likely take a long time to come to pass.
In the meantime, it’s important to get a handle on your finances with or without a UBI payment coming your way. Start by evaluating your expenses. If you truly can’t make any cuts to discretionary purchases, consider looking for ways to increase your income. Some options include asking for a raise, picking up a part-time job, or starting a side hustle. As your income increases, use the newfound cash flow to tackle big goals, like paying off debt, building an emergency fund, and saving for retirement, to stabilize your finances for the long term.
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