To effectively combat poverty, Canada is taking small steps toward implementing a basic income program. Senator Kim Pate’s proposal for a federal framework for a universal basic income plan is being considered by the Senate National Finance Committee beginning October 17.
Canada has toyed with the idea of a basic income program since the 1970s.
The need for a basic income program intensified during and after the COVID-19 epidemic, as the Canada Emergency Response Benefit (CERB), which provided $2,000 a month to millions of Canadians, highlighted the potential for a long-term income program.
Below is an explanation of guaranteed basic income, how it works, and what it might look like now that the federal government is moving toward researching it as a viable option.
Jump to
- What is universal basic income?
- When was the last time Canada attempted a universal basic income proposal?
- How much would a basic income program cost?
- Can Canada implement a basic income program?
What is universal basic income?
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Everyone would receive a government payment known as universal basic income (UBI), regardless of their income level or level of need.
According to Michael Mendelson, a member of poverty policy think tank Maytree, most contemporary ideas about UBI no longer adhere to its literal definition, as the Star reported.
Today, “UBI” refers to any basic income program, whether universal or a “guaranteed” income program, that is tailored to an individual’s needs.
The Senate bill proposes a guaranteed “basic livable income” for all adults in Canada over the age of 17, including temporary employees, long-term residents and asylum seekers.
Existing health or disability benefits would not be eliminated or reduced by the basic income concept that has been proposed.
When was the last time Canada attempted a universal basic income proposal?
Although a national basic income program has not yet been formally adopted, regional administrations have experimented with providing cash to people without conditions.
In the province of Manitoba, the government supported a guaranteed basic income experiment from 1974 to 1979, but Dauphine received the most attention.
There, the “M Income” program guaranteed a minimum income for each household, which meant that even if no one worked, they would receive the maximum amount from the government at a reduced rate for every dollar they earned.
The term “income”, as it was known, was eligible for about 30% of the city’s residents.
Credit: The Star
According to a recent 2018 study, during the Dauphine experiment, more children stayed in school longer and hospitalizations, especially for mental health problems, decreased.
Ontario began a trial basic income program in Hamilton, Thunder Bay and Lindsay in 2017 under the leadership of then-Premier Kathleen Wynne.
The project was designed to provide up to $17,000 per year to 4,000 low-income people in the target region for three years.
However, the pilot program was suspended once Premier Doug Ford took office following a resounding victory in the 2018 election.
Starting in 2023, Quebec’s basic income program will be implemented. For Quebec residents with a “very limited employment capacity,” the province will pay a base amount of $1,211 per month.
Those who receive the benefit can earn up to $14,532 per year without having their benefits cut.
How much would a basic income program cost?
Credit: UNC University
The guaranteed basic income program would cost the federal government $85 billion, according to estimates made by parliamentary budget manager Yves Giroux in April 2021.
It would still cut poverty rates in half by giving low-income households about $17,000 a year.
Can Canada implement a basic income program?
Credit: Vox
According to Mendelson, if the CERB or any other basic income pilot program has taught us anything, Canada has the “administrative capacity” to implement a basic income program.
Mendelson said the government should do more than rewrite the CERB.
The main topic of discussion around basic income policies is “how to best address poverty in a sustainable way that is most effective in reaching the people who need it.”
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Source: vtt.edu.vn