Toward a National Universal Guaranteed Basic Income

Abstract

There is renewed discussion of a basic or guaranteed income at both the federal and the provincial levels in Canada, but counterarguments about the cost, work disincentives, and electoral appeal of such schemes remain challenging. In this article, we argue that a grand plan for a basic or guaranteed income is unnecessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equity. Using 2015 tax and transfer parameters and estimates of income and population, we assess the federal transfer system as a source of universal income security, identify the revenues that can be raised through the elimination of selected federal tax credits, present four options that could be financed within that budget constraint, assess their performance, and select our preferred universal basic guaranteed income (UGBI) option. We then provide a more detailed assessment of the impact of our preferred UGBI design and discuss the extension of that design to provincial tax and transfer systems. We estimate that the combined federal and provincial UGBI that we propose would effectively target benefits to low-income households and virtually eliminate poverty for all but single non-elderly individuals at a modest efficiency cost in terms of work disincentives.

‘Covering all the [welfare] basics’: a critical policy study of the Expert Panel on Basic Income report in British Columbia, Canada

“…(Report,p 35) It is odd that some populations -particularly those who are already in receipt of government support, including youth ageing out of care, women fleeing violence, older adults, and families -are deemed suitable (or perhaps deserving) to receive income support through a partial BI while others (such as working-age adults) are not (Report, p 35). Various assumptions ground the authors' rationale for why a BI might not be fitting for the latter group, reasoning largely anchored to arguments related to cost and work disincentives -the two most frequently cited objections to BI (Stevens and Simpson, 2017).…”

Improving the well-being of Canadians

“…In a similar vein, using 2015 data, Stevens and Simpson (2017) The challenges relating to housing affordability and homelessness…”

A Basic Income For All? Understanding the Basic Income Concept From the Perspectives of Community-Based Advocates

“…In a separate model proposed by Stevens and Simpson (2016), they advocated for funding a basic income through the elimination of a series of non-refundable and refundable tax credits that largely exclude low-income earners. Under this model, adults 18 and older would receive a basic income, ranging from $6,700 to $17,727, depending on family size and income.…”