# Is it actually UBI? **URL:** \ **Category:** Basic Income\ **Created:** [June 22, 2023, 1:56am UTC](https://forum.aboutcircles.com/t/is-it-actually-ubi/527 "2023-06-22T01:56:36Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![tjchdf](https://avatars.discourse-cdn.com/v4/letter/t/ac91a4/32.png) [@tjchdf](https://forum.aboutcircles.com/u/tjchdf)\ **Post date:** [June 22, 2023, 1:56am UTC](https://forum.aboutcircles.com/t/is-it-actually-ubi/527/1 "2023-06-22T01:56:36Z")
If everyone in a local community is receiving CRC at the same rate, and they will receive all goods/services from others in the same community, then no one is actually gaining anything. UBI by definition has to involve redistribution, no? Otherwise it cancels out. ---
**Author:** ![martin\_koeppelmann](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.aboutcircles.com/martin_koeppelmann/32/313_2.png) [@martin\_koeppelmann](https://forum.aboutcircles.com/u/martin_koeppelmann)\ **Post date:** [June 22, 2023, 7:28am UTC](https://forum.aboutcircles.com/t/is-it-actually-ubi/527/2 "2023-06-22T07:28:46Z")
There absolutely is a redistribution. Remember - there is a 7% “tax”/ demurrage on all balances. So every human gets: 24 \* 365 = 8760 Circles per year. So if you hold exactly (8760/0.07 =) 125,142 CRC you balance will stay flat as the 7% demurrage and the UBI exactly cancel each other out. Everyone who holds less CRC will benefit from UBI and everyone who has more will effectively pay a tax. Please note that also all businesses (all entities that hold CRC but not receive a UBI) just pay the tax.