Excellent point. It is just disguised socialism unless the government pays for it themselves.
One modification can make it ethical, import taxes and luxury sales tax. At least then you have the choice of saving your money, or paying the tax on your import or luxury purchase. Before 1913 this was how the government was funded. If you bought local goods and food was not taxed, this would be the ideal system.
http://www.zerohedge.com/news/2013-04-15/100-years-old-still-killing-us-america-was-much-better-income-tax
The proposal (on the german site) includes variable sales taxes for different goods, the 15% seem to be just an average. Basic needs like food are extempt as long as the employee/turnover ratio is met.
I included this in the OP