Basic Income: What federal income supports could be folded into one?

  1. It’s refundable — your income cannot be too low such that you do not receive it.
  2. You need to file a tax return in order to receive it, unlike the BPA which can be (imperfectly) incorporated into the cheques you get each pay period. This is important, as roughly 15% of Canadians do not file a tax return and essentially fall through the cracks when it comes to these programs (including 97% of all people experiencing homelessness).
  3. The value of the credit is phased out at much lower income levels than the BPA.
  4. The GST/HST credit is paid out four times per year, whereas the BPA is incorporated into the amount deducted from your paycheque each pay period (and then reconciled when a tax-return is filed).

How could we combine all four?

  1. Make the BPA refundable, so low-income individuals receive the full benefits of it. My back-of-the-envelope estimate (along with this paper from Simpson and Stevens) is that the yearly cost would be in the $20–25 billion a year range.
  2. Introduce automatic filing of tax returns, along with an initiative to get the most marginal and vulnerable Canadians known to the tax system, so they can collect all the benefits to which they’re entitled.

--

--

--

Senior Director, Smart Prosperity. Assistant Prof, Ivey Business School. Exhausted but happy Dad of 2 wonderful kids with autism. I used to do other stuff.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

FOR A FUNCTIONAL ECONOMY, SUFFERING IS NEEDED

The Plight Of Puerto Rico

Global trade

The importance of entrepreneurship for a country’s economic growth.

About shipping dynamics driving softs higher, make or break time for crude and peakish inflation

Why is China Still Considered an Emerging Nation?

To ride out this storm, you should rebuild your boat.

Mythbusting: Interest payments are why Ontarians can’t have nice things.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Mike Moffatt

Mike Moffatt

Senior Director, Smart Prosperity. Assistant Prof, Ivey Business School. Exhausted but happy Dad of 2 wonderful kids with autism. I used to do other stuff.

More from Medium

The 5 things my marketing agency will be focusing on this year

5 things I learned about the Metaverse– and you should know too

Ali Safavi | Apps And Software For Today’s Real Estate A List For Buyers as Well as Agents

Why I Chose Polycarbonate Lenses Over High Index Lenses