(VOVworld) – In a referendum on June 5, approximately 80% of Swiss voters rejected the idea of the state providing a life-long allowance. Opponents of the idea say such an allowance will increase taxes and discourage people from working. Finland is considering a similar plan.

The referendum in Switzerland was the world’s first test of the idea of a life-long allowance first proposed in 2013. 8 million coins representing Switzerland’s 8 million people were spread out in front of the Parliament House in Berne to show support for the idea.

According to the plan, approximately 2,560 USD would be given to each adult Swiss citizen every month and 600 USD to each child. The idea is to eliminate poverty and unfairness, ensure the solvency of all Swiss citizens, reduce administrative costs, and make the social security budget predictable.

But the majority of Swiss citizens say such an allowance would be unfair, would increase taxes, and would discourage people from working. Opponents, including a number of government officials have predicted higher public spending, leading to economic decline and lower competitiveness. Luzi Stamm, a member of the conservative party, said the idea is unfeasible because, with an open border, people from other countries would try to enter Switzerland which has a high standard of living. Many members of the Swiss People’s Party said that, if adopted, the policy would create a migrant crisis in Switzerland, a country in the Shengen area. The Swiss cabinet estimated that this policy would cost Switzerland approximately 203 billion USD a year and would discourage people, particularly low-income-earners from working.

Although most Swiss voters have rejected the plan, Finland is considering it. As a test, the government is providing a basic allowance to approximately 8,000 low-income-earners. Finnish officials have proposed a national basic allowance to simplify the social security system and encourage unemployed people to do part-time work. Each citizen would receive 800 euros a month. This money, which would replace other benefits, would be given to all adults, employed or not. The Finnish government is expected to approve the plan in November after it has been piloted in several localities.

Finland’s unemployment rate currently stands at 10% and this policy is expected to encourage the unemployed to seek jobs. A recent survey showed that 69% of Finns support the plan, which, if adopted, will cost Finland 46.7 billion euros a year.