Taxes are competitive. If you have extremely high taxes, then the businesses that can move out will move out, leaving a smaller tax base and requiring you to raise taxes even more in a death spiral.
It's worth repeating that doing nothing increases overall societal costs if large parts of the population become unemployed, whether due to lower statewide income taxes, increased welfare costs, people resorting to grey collar work, and other secondary effects from increased displacement (lower consumer spending, rentals sitting empty, health epidemics, increased crime, etc.). UBI does not have to be a blanket instrument either: rather than income, we can focus on making certain goods and services universally available, such as access to food surpluses that would otherwise be overturned or basic internet access to enable people to remain connected without expensive contracts.
A solution may even exist beyond taxation: making reschooling and job pivoting more accepted within industry, lowering admission costs to tertiary education, or guaranteeing placement of employees when let go on account of automation or cost-cutting. What way the pendulum will swing remains to be seen.
They don't get to keep the tax revenue you know.
Fractional reserve banking is pretty much an urban myth. Banks create money when they make commercial loans. The Bank of England explains it quite nicely here:
https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
Socialize the essentials, let people work for the non-essentials.
If there isn't enough work to go around for people who want more than a substistence living, start reducing the definition of "full-time" until there is. If only 50% of working aged people can find work, redefine full-time as 24 hours/week
There won't be UBI, period. Though I could see a future where obsolete people are warehoused in sex-segregated poor houses until they die out, if it's determined that their freedom is threat to stability.
I just don't see it. They will need a job, they just won't be able to find one. It is not a utopia, it is a disaster.