We collect all the questions throughout the project and answer them here. This page gets updated constantly.
I became pregnant before the 5th of June 2018. Can I also register my unborn child?
Children that are born during the project will be able to participate. In addition, someone that gets married to someone who already meets the project requirements (one of the spouses must have been a registered resident in Rheinau on the 5th of June 2018) during the project will be able to participate.
You do not need to register the unborn child but wait until the child is born. The only requirement is that you have registered yourself by the 15th of September 2018.
I am entitled to a monthly disability income, on top of which I receive a helplessness allowance. Do I have to declare this as income (it is non-taxable)?
If the allowance is non-taxable then only the disability income must be declared.
Do I have to declare the Basic Income on my tax return?
Yes, but ONLY the additional amount that you really received (so, not the amount that flows during the year). Participants will receive a Statement (similar to the Salary Statement) at the beginning of 2020 from the project team for the 2019 tax period that can be attached to the tax declaration. On the statement you will be able to see how much Basic Income you received during 2019. This additional amount needs to be entered into the “additional Income” part of the tax declaration form.
I have my own company. How should I proceed? What should I enter as my income and how does the accounting work?
Income
Based on your experience from the last years you can roughly estimate how much you earnt (you’ve been able to plan your life so far). This means that you can estimate an average monthly salary based on the past years and put that figure on the Contract.
Accounting
As an Independent you need to provide Quarterly accounts. With this quarterly accounting you can cover the zero months with the Basic Income. At the end of the Quarter you would need to pay 3 x 2500 CHF back to the project.
If you choose to opt out of Quarterly Accounting, then each month we will take the average value of last year’s income. That means that you will lose the option to bridge a month because each month you will need to reimburse the Basic Income, no matter how much you earn.
I am a Pensioner and in addition to my Pension (AHV) I receive a child benefit for my child who is still in education. Question: Should the child benefit (AHV) be attributed to the child (as child allowance) or to the Parent (like alimony)?
The supported child is of age and in education, that means that you should register as a Family. You enter your pension as income and the child enters the child benefit as income which should be between 470CHF and 940CHF. This means, that both incomes will be entered into the village Basic Income Pot and you will receive the Basic Income – You will receive 2’500CHF and the child will receive 1’250CHF or 1’875CHF.
Alimony: how will this be calculated
Alimony is classified as “salary income”. This means that the alimony receiver must declare the alimony as income, in addition to other salary elements. The person paying the alimony may deduct the amount from their income if they are participating in the experiment.
How will AHV payments be handled? Will this be deducted directly, or will it have to be paid at the end of the year?
When you register you will receive a 2’500CHF payment at the beginning of the month. At the end of the month you will receive your AHV payment. Let’s suppose you receive 2’100CHF, then you will transfer this to us at the END of the month. So, at the end of the month you will have 400CHF MORE money on your account that before. When your AHV payment is that high every month then you can simply set up a standing order to transfer the money to us for 2019.
During the test year nothing will be automatically deducted as the experiment does not have or want access to the Tax systems.
I am a single pensioner. In addition to my 2’188CHF AHV I receive 1’500CHF from the SUVA. It the SUVA payment considered income in this case?
Yes, both the AHV and SUVA payments are considered as income. These have to be declared as income on the tax declaration.
I am a fulltime student with part time job on an hourly wage where I earn between 800 to 1’200CHF per month. Therefore, I must return a different amount each month which is clear for me. I suppose that I need to submit my payslip each month so that you can check the figure. Is that correct?
In the contract you will need to enter your income based on your Tax Declaration from last year. In your case this would be 1’000CHF.
During the test year, at the end of the month you will have to transfer the income that you received (up to the max of 2’500CHF).
You do not need to provide an extra salary slip.
If I participate in this project in Rheinau and take an unpaid month’s holiday in November 2019, and receive the allowance in October, will I be able to keep the 2’500chf? Will I receive the payment in December because I didn’t work in November?
When the Allowance is for expenses then you don’t need to declare this, you will receive the 2’500CHF and don’t need to reimburse it.
If there is an additional income, then you have to pay this back to us (up to the max of 2’500CHF).
Our children will receive 625CHF, less child benefit. Does this money have to be reimbursed at the end of the month?
Yes.
How will the “reimbursement” work?
At the beginning of the month we will transfer the Basic Income to everyone, based on the Age limits. At the end of the month you have reimburse the following:
I earn more than 2’500CHF. That means that I cannot benefit from the basic income. Why should I participate?
“Benefit” is clearly linked only to money in this question. You can indirectly “benefit” from the basic income when the community is better – then everyone benefits that lives in the community.
Why do you have to declare income from the AHV but not from the Pension.
Pensions are personal savings accounts for old age and are not compulsory for everyone. So, they are not a general insurance. Funds are personal protection. Even with the basic income everyone should be able to save.
Is it true that the Experiment does not impact the Community Finances?
The money that will be used to finance the experiment will come from Crowd Funding and not from the Community funds. There are some administrative costs and some meetings that the Community will pay. This should be a few thousand Swiss Francs. The amount that the community will receive from the project should be a lot higher, around 3 million, depending on who participates in the experiment.
In the Information Leaflet it states that refugees cannot participate. Why not?
Anyone who is a legal citizen under civil law can participate. This means people who are established in Rheinau. These are people that are free to choose their place of residence. This is the most important criteria: Is that person allowed to choose where they live? Then this person can participate. People that have been placed in a home cannot freely choose where to live and therefore cannot participate. This is regulated by the Immigration Law.
I still have some questions that I would like to ask, where can I do this?
You can write to the project team – info@dorftestetzukunft.ch – or you can contact the Town Council.
Many married pensioners complain that there is an injustice that they receive less AHV pension than single pensions that live together, namely only 3’400CHF or 1’700CHF per head. Unmarried couples receive 1’900CHF to 2’300CHF. Is it true that married pensioners will benefit from this experiment?
Yes! A person that receives the full pension of 3’400CHF transfers 1’700CHF to their partner. At the beginning of the month each person receives 2’500CHF. At the end of the month each person has to pay 1’700CHF back to the project (you can set up a standing order for 2019). At the end of the month the couple has 800CHF extra each.
My monthly revenue is higher than 2’500CHF. If I take 3 months unpaid leave can I keep the 2’500CHF?
When more that 50% of the population sign up the contract filling process will begin. You will have to fill in information like your Account number and your monthly income. What you need to enter there is an assumption based on your tax return from last year.
In 2019 when the payments begin, you will receive the Basic Income as a bank transfer and if your income is higher than the Basic Income then at the end of the month you will need to reimburse the entire amount (just set up a standing order with your bank when your revenue remains the same).
If you take unpaid leave for 3 months’ then you keep the Basic Income that was paid out at the beginning of the month.
My Situation: I’ve been working and living in Rheinau since March 2018 with my boyfriend, but I am still registered in Langnau im Emmental. Can I use the Rental agreement that I signed (along with my boyfriend) as proof of residence and therefore sign up for the Basic Income?
The town council says that you should register for the project and they will follow up later. To be safe you can take the rental agreement along to the Town Council offices.
A friend who has been living and working in Rheinau for years and has a refugee resident status “F” permit isn’t sure if he and his family can participate. He says that someone at the Presentation Evening told him that they probably couldn’t participate. What is the official position of the project on this?
We have to adhere to the basic principle here: A person who is a registered civil resident in Rheinau on the 5th of June 2018 with the intension of living for a long time in Rheinau can participate. Persons with an “F” permit generally do not have civil residency in the town.
There might be some exceptions to the list. So, the following will happen: The person should register and we (the Town Council) will receive a list from the project team after the 15th of September. At that point the list will be compared to the population register. At that point some people might have to be removed from the list.
Why “external” money?
This experiment is being organised by citizens. Not by the State. Therefore, we cannot use tax money to finance the experiment. We don’t want that either as the focus is not to find the perfect financing model but instead to find out how the basic income impacts a community and its residents, and because we are convinced that is will work: if we want it then it can also be financed – as was the case with the AHV.
In order to finance the project, we have decided to split the responsibility: One community will test the basic income – a village, another funds it – through Crowd Funding.
Why the “reimbursement”?
A real Basic Income would not just be “money on top” of all other income. If that was the aim, then:
A viable implementation of a basic income can therefore only work through a redistribution of existing funds (taxation). What this redistribution will look like is a political decision.
The proportional or total “return” of the paid basic income can be looked at in the Rheinau model, so to speak, as “partial financing”.
Why do I need to have my own bank account to register?
What is important with the Basic Income is that everyone receives their individual Basic Income. For this experiment it is important that everyone has their own account. We will not pay two or more Basic Incomes onto the same account for this test, other than the Basic Income for Children.
As a self-employed person, what options do I have?
For a self-employed person to be able or willing to not take on a job for a month, there is a possibility for self-employed or employees with irregular income to pay quarterly and not every month.
Can you please explain the “Partner Transfer” again?
The public have repeatedly highlighted that it would be unjust for a high-income family to receive an additional 2’500CHF for the non-working partner. We have taken this onboard and included the so called “Partner Transfer” as an option on the form.
This means that when one partner has no revenue and the other has a high revenue, then the family can decide to opt for the Partner Transfer option. This means that the main breadwinner pays their partner a salary. This is voluntary.
What is the point of this unconditional basic income?
The prosperity of our country is the prosperity of all citizens. It goes back to the achievements of all citizens, including the achievements of previous generations. Therefore, justice demands that all citizens be involved in this prosperity.
The Basic Income is not just money. It is a basic appreciation. The same for everyone. An appreciation that allows one to develop, to invest in oneself.
SL: There can hardly be a stronger expression of appreciation. As there is both an individual and a collaborative side, there are two impulses: enabling individual development, enabling public welfare contributions – both without directives.
The Basic Income
(Source: Ute Fischer, Stefan Heckel, Axel Jansen, Sascha Liebermann, Thomas Loer, www.freiheitstattvollbeschaeftigung.de/thesen/)
Why should Pensioners participate?
In face of the actual unsustainable situation, where more and more people over 50 are unable to find a job, while at the same time there are discussions about raising the retirement age to 67/65, this is exactly one of the strong arguments for a Basic Income. The AHV would be completely replaced by a basic income meaning that the artificial boundary between the working population and pensioners disappears. Everyone works as long as it is useful and desired for the economy AND society. You can see that as a benefit or as an impulse to think about a hypocritical political discourse.
Doesn’t the Basic Income attack the Workplace?
The main aim of a company is not to create jobs but to innovate, thus developing our society. If this is better and cheaper with Machine’s, then this path will be taken away. Everything else is window dressing.
Doesn’t the Basic Income reinforce the old role distribution between men and women?
What is important to the project is that everyone receives the Basic Income. So, it is not the case that a non-active person becomes dependent on another, as before. At the beginning of each month you will receive 2500 CHF in your account. We will never pay two or more Basic Incomes to a single account unless it is children’s basic income! Spouses without their own account (if that still exists) must open their own account!
Why do we need to change our current tax system? It works well?
Our tax system is anything but fair:
The wealthy benefit the most from deductions (deductible home expenses, non-taxable capital gains, rental income with many deductible expenses), the labour deductions of an employee, however, are negligible.
Who will do the “Dirty Work”?
This is a very popular question and appears in many variations: would the basic income not set false work incentives? Why should we still work if we have a basic income? Who works voluntarily? All variations on this question are not questions but an assertion in question form. The real question is: what makes work dirty? That it removes the dirt? That the work is poorly paid? That we do not value the work? The work is not Dirty, the circumstances are dirty. That basic income covers that. The basic income cleans the dirty work.
Won’t there be more immigrants when the Basic Income comes?
No. The migration authorisation regulates immigration law.
Just one year? That doesn’t prove anything.
You must start somewhere, and the project team felt that one year would be meaningful. It can be extended at any time – if people want.
Everyone makes their own decisions – this is an important factor in the whole basic income discussion. That people again ask themselves what they want and what is important to them.
Is the Basic Income competition for Part Time work?
Yes, the basic income challenges part-time jobs, but only those that are not meaningful, because the other part-time jobs continue because money is not the sole driver. For the entrepreneur, this raises the question, are my job offers interesting enough to keep the employees, or would this work not be better automated, if it is just meaningless work.
Thus, if these part-time jobs are only done because they bring money, or are there also a meaningful component behind them, e.g. for a mother with small children, so that she does not lose the connection to her profession to return to work later (which is a very big problem, because more and more mothers do not manage this anymore).
Who can participate in the experiment?
People that fulfil the following conditions can participate:
I receive social welfare. What applies to me?
If you continue to apply for social welfare, all rights and obligations under social assistance will remain. In addition, you will receive the basic income amount at the beginning of the month. If the social security amount that you receive is higher, you must pay back the basic income amount. If the social assistance amount is less than the basic income amount (this is usually the case) then you can keep the difference. Financially, participation in the project is worthwhile in most cases. If you unsubscribe from social assistance, the requirements of the social welfare office are omitted, and you do not receive the social assistance contribution anymore. All rights and obligations resulting from social assistance expire. You will receive only the basic income amount.
How big is the administrative effort during the project?
The effort is thought to be low:
Can I get out during the project?
In principle, no. Registration is valid so long as you live in Rheinau, but at the most for a year. Exceptions are granted by the project management team.
How high is the Basic Income?
The maximum amount per month depends on age. The higher amount will be paid for the first time in the month following the birthday. If the birthday is on the 1st day of the month, the higher pay out for that month will be:
Where are the funds coming from?
The town’s finances are not affected. The money comes from crowdfunding.
Thus, one community financially enables the experiment, while another community (the inhabitants of Rheinau) allows the project through their participation.
Does the Basic Income have to declared on the tax declaration?
Yes. It must be declared in the tax return for the year 2019 as “other income”, but only the amount that you can keep. The project management compiles a statement for each person at the end of 2019, which must be enclosed with the tax return.
I’ve heard that there will be filming and interviews during the project, and that maybe I’ll be on TV or in movies, or that my name might appear the newspapers. I find that embarrassing.
Participation in the film project is voluntary. You will not be seen if you do not give your consent. We will be filming at major events, such as the 1st of August, but you will not be seen in any pictures if you do not want to.
Who checks the details of the participants and who checks whether the repayments are made correctly?
Accountants from the project team will take care of this. Every month, a list is drawn up showing who has received what amount and who has paid back how much. This list goes to the town council. Samples are taken to see if the payments are plausible and potentially an inquiry is made by telephone. This is done by employees of the municipal administration.
What if someone does not repay the amount they receive, even though they earn an income?
If a person does not repay at the end of the month and the reason for this is not a mistake, the project leader will not pay any basic income in the next month.
What will the project leadership do if they suspect someone is cheating?
The experiment is based on trust. Therefore, the project management basically assumes that the information provided by the participants is correct. However, if after consultation and examination it turns out that someone is not giving the income truthfully and therefore receives too much basic income, he / she will be excluded from the experiment.
Person X earns about CHF 1’000 per month. They receive Fr. 2’500 at the beginning of the month and thus has Fr. 3’500 for the whole month. At the end of the month, they would have to pay back CHF 1’000, but they do not have this money because they spent 3’000 of the CHF 3’500. What should they do?
This case should not occur, because the wage of CHF 1’000 only comes at the end of the month, usually on the 25th day of the month. Then you already know, if Basis Income and wages together are higher than Fr. 2’500 has what you must pay back.
Person X is unemployed. They receive unemployment benefits. What happens if X participates in the experiment?
The person has 2 options:
IMPORTANT: If the person logs off and logs back in as unemployed after the trial year, the year will be credited with the basic income (up to a maximum of CHF 2,500 / month) to determine the new unemployment benefit. Please clarify details with the unemployment office!
What happens if the unemployed person no longer applies for jobs?
They will lose the claims from the unemployment office. When they return to the unemployment office after one year, they are treated the same as a person who has earned a monthly salary of CHF 2,500.
I would like to take an unpaid leave (once in May and once in September). I can only afford it if I receive the Basic Income of CHF 2’500 each in these two months. Do I have to participate for the whole year?
Yes. If you want to receive the Basic Income, you must enrol for the whole year. While the project is running, people cannot join. For exceptions see above.
If I take an unpaid leave of 2 months, who will pay my contributions to the AHV?
The AHV contributions are always calculated on an annual basis. If you pay the minimum contribution into the AHV in 2019 in the months you receive a salary statement, you will not lose any contribution. If you are below the minimum contribution, then you must pay the missing AHV contributions. For married couples, the salary of the spouse is considered. The AHV contributions are usually not a problem.
Will AHV contributions be deducted from the Basic Income?
No. The Basic Income is not a fee for work performed and thus not subject to AHV.
If I take an unpaid leave of 2 months, who will pay my contributions to the pension fund?
A back payment of the employee contribution to the pension fund is generally not a problem. Who takes over the employer contribution, must be discussed with the employer. If the employer does not pay the employer’s contribution, then you will have a small loss.
When I participate in the project, I must provide various personal details, such as name, account number. Partly, I must also give some information on income. Who will have access to the information and what happens to the data after completing the project?
All data collected for the conduct of the experiment will be treated confidentially before, during and after the project. They are used solely for payments and research. There, the data is anonymized.
I’ve heard that I can only keep the Basic Income if I have no revenue. What counts as “income”?
In principle, everything that must be stated as “income” for taxes. However, it would lead to complicated billing, because deductions can be made in the tax return from the income earned. Simplifications are therefore made in the project: there are no deductions, but not all revenues have to be stated. The following paragraphs correspond to the figures in the tax declaration of the canton of Zurich. Each person is considered individually. (The exact list can be found in the information sheet 2 of the community).
Will there be no unemployment benefits with a Basic Income?
No. Some people will still need social security, and some will require unemployment benefits.
If you get that kind of money, no one will work anymore.
Does that mean that you only work to earn money?
Very few people feel the need to spend their lives without employment. Especially in Central Europe, man defines himself by his activity. The Basic Income should enable people to engage in meaningful and perhaps innovative employment, without the pressure of a salary to earn.
Of course, in every society, there is a minimum proportion of the population that does not want or cannot work. Everyone is already paying for these people, who pursue a job. Our vision assumes that people like to fill their everyday life with meaningful actions, not being lazy.
Our relationship to work
Why are some jobs paid very high and others not? Nurse vs. Banker? Why these differences? Paid and unpaid work are significant in their own way, but “unpaid work” is currently treated as a hobby. There are many jobs in our society that are hugely important but not rewarded. They are still done, often by women.
The Basic Income (regardless of the technological standard) creates a separation between employment and income and offers a path into a human-oriented activity society.
Does the Basis Income threaten part-time work?
The basic income questions the part-time jobs, but only those that do not make sense, because the other part-time jobs still exist as money is not the sole driver. Therefore, resignation would only happen where the employee’s job is only done for money.
Shouldn’t full employment be the goal instead of giving everyone money?
Sticking to the goal of full employment entails a waste of citizens’ lives because they are bound to commit deadly, unworthy works. Time is senselessly “satiated” and cannot be used for meaningful activities; the dignity of man is disregarded.