BY CHANDRA PASMA, CITIZENS FOR PUBLIC JUSTICE Income Security for All Canadians
Guaranteed Income <ul><li>Money given by government to citizens </li></ul><ul><li>… to ensure that everyone has an income ...
Guaranteed Income <ul><li>Also known as: </li></ul><ul><ul><li>Guaranteed annual income </li></ul></ul><ul><ul><li>Guarant...
Guaranteed Income <ul><li>Negative Income Tax </li></ul><ul><ul><li>Administered through the tax system </li></ul></ul><ul...
Guaranteed Income
Guaranteed Income <ul><li>Appraisal: </li></ul><ul><ul><li>Targeted – only those below a certain income level receive the ...
Guaranteed Income <ul><li>Universal Demogrant </li></ul><ul><ul><li>Basic income </li></ul></ul><ul><ul><li>A fixed amount...
Guaranteed Income <ul><li>Example: </li></ul><ul><ul><li>$15,000 per adult and oldest child in a single-parent family </li...
Guaranteed Income <ul><li>Appraisal: </li></ul><ul><ul><li>No stigma, because everyone receives the same benefit </li></ul...
Guaranteed Income <ul><li>Key questions: </li></ul><ul><ul><li>Conditional? </li></ul></ul><ul><ul><ul><li>Targeted to low...
Guaranteed Income <ul><ul><li>Funding? </li></ul></ul><ul><ul><ul><li>Higher tax rates </li></ul></ul></ul><ul><ul><ul><li...
Guaranteed Income <ul><li>Jurisdictional issues </li></ul><ul><ul><li>Welfare versus assistance </li></ul></ul><ul><ul><li...
Guaranteed Income <ul><li>Arguments in favour: </li></ul><ul><ul><li>Economic arguments </li></ul></ul><ul><ul><li>Social ...
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Guaranteed Income Final

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Chandra Pasma's presentation on Guaranteed Income at the BIEN Canada conference in Ottawa, October 2009.

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Guaranteed Income Final

  1. 1. BY CHANDRA PASMA, CITIZENS FOR PUBLIC JUSTICE Income Security for All Canadians
  2. 2. Guaranteed Income <ul><li>Money given by government to citizens </li></ul><ul><li>… to ensure that everyone has an income adequate for meeting basic needs </li></ul><ul><li>… without condition </li></ul><ul><li>… rather than other government programs such as welfare </li></ul>
  3. 3. Guaranteed Income <ul><li>Also known as: </li></ul><ul><ul><li>Guaranteed annual income </li></ul></ul><ul><ul><li>Guaranteed adequate income </li></ul></ul><ul><ul><li>Guaranteed livable income/livable income </li></ul></ul><ul><ul><li>Basic income/basic income grant/basic income guarantee </li></ul></ul><ul><ul><li>Citizen’s income </li></ul></ul><ul><ul><li>Social/natural resources dividend </li></ul></ul><ul><ul><li>Refundable family tax credit </li></ul></ul>
  4. 4. Guaranteed Income <ul><li>Negative Income Tax </li></ul><ul><ul><li>Administered through the tax system </li></ul></ul><ul><ul><li>3 key elements: </li></ul></ul><ul><ul><ul><li>Benefit: the maximum amount that any person (or economic unit) can receive </li></ul></ul></ul><ul><ul><ul><li>Reduction rate: the amount by which the benefit is reduced for additional income </li></ul></ul></ul><ul><ul><ul><li>Break-even level: the income level at which the reduction rate is 100% </li></ul></ul></ul>
  5. 5. Guaranteed Income
  6. 6. Guaranteed Income <ul><li>Appraisal: </li></ul><ul><ul><li>Targeted – only those below a certain income level receive the benefit </li></ul></ul><ul><ul><li>Lower cost </li></ul></ul><ul><ul><li>Supposed “work incentive” – 100% of the benefit is not clawed back for additional income </li></ul></ul><ul><ul><li>Universal access, rather than universal benefit </li></ul></ul><ul><ul><li>Is it easier to attack a benefit that is only going to those in low income? </li></ul></ul>
  7. 7. Guaranteed Income <ul><li>Universal Demogrant </li></ul><ul><ul><li>Basic income </li></ul></ul><ul><ul><li>A fixed amount is paid to every citizen (and permanent resident) regularly, regardless of income, work or family structure </li></ul></ul><ul><ul><li>Payment is non-taxable, but tax on other income is increased </li></ul></ul><ul><ul><ul><li>Higher income citizens essentially pay the grant back through taxes </li></ul></ul></ul><ul><ul><ul><li>Flat tax vs. progressive tax </li></ul></ul></ul>
  8. 8. Guaranteed Income <ul><li>Example: </li></ul><ul><ul><li>$15,000 per adult and oldest child in a single-parent family </li></ul></ul><ul><ul><li>Plus $7,000 per child </li></ul></ul><ul><ul><li>With basic income tax rate increased from 15% to 18.5% for the first bracket of taxable income – and so on. </li></ul></ul>
  9. 9. Guaranteed Income <ul><li>Appraisal: </li></ul><ul><ul><li>No stigma, because everyone receives the same benefit </li></ul></ul><ul><ul><li>Greater social cohesion </li></ul></ul><ul><ul><li>Easier to access the benefit </li></ul></ul><ul><ul><li>Harder to cut the benefit rate because it’s not targeted to low income people </li></ul></ul><ul><ul><li>Cheaper administration </li></ul></ul><ul><ul><li>Greater overall cost of the program </li></ul></ul>
  10. 10. Guaranteed Income <ul><li>Key questions: </li></ul><ul><ul><li>Conditional? </li></ul></ul><ul><ul><ul><li>Targeted to low income earners </li></ul></ul></ul><ul><ul><ul><li>Activity – a “participation condition”? </li></ul></ul></ul><ul><ul><ul><li>Certain age groups could be excluded </li></ul></ul></ul><ul><ul><ul><li>Non-citizens </li></ul></ul></ul><ul><ul><ul><li>Institutionalized and incarcerated persons </li></ul></ul></ul><ul><ul><li>Benefit level and tax rate </li></ul></ul><ul><ul><ul><li>Benefit level below the poverty line could increase poverty </li></ul></ul></ul><ul><ul><ul><li>Cumulative tax rates could negate the impact </li></ul></ul></ul><ul><ul><ul><li>Benefit levels and “work disincentive” </li></ul></ul></ul><ul><ul><ul><li>Individual vs. family benefits </li></ul></ul></ul>
  11. 11. Guaranteed Income <ul><ul><li>Funding? </li></ul></ul><ul><ul><ul><li>Higher tax rates </li></ul></ul></ul><ul><ul><ul><li>Special taxes – natural resources, consumption, wealth, capital transfers, information transfers, electronic transactions, ecotax, or Tobin tax </li></ul></ul></ul><ul><ul><ul><li>Collapse of existing social programs </li></ul></ul></ul><ul><ul><li>What additional social programs are maintained? </li></ul></ul><ul><ul><ul><li>Employment Insurance </li></ul></ul></ul><ul><ul><ul><li>Child care </li></ul></ul></ul><ul><ul><ul><li>Various tax credits and benefits, including CCTB </li></ul></ul></ul><ul><ul><ul><li>OAS and GIS </li></ul></ul></ul>
  12. 12. Guaranteed Income <ul><li>Jurisdictional issues </li></ul><ul><ul><li>Welfare versus assistance </li></ul></ul><ul><ul><li>Who pays? </li></ul></ul><ul><ul><li>If it is a federal program, is there a provincial component? </li></ul></ul>
  13. 13. Guaranteed Income <ul><li>Arguments in favour: </li></ul><ul><ul><li>Economic arguments </li></ul></ul><ul><ul><li>Social arguments </li></ul></ul><ul><ul><li>Environmental arguments </li></ul></ul><ul><li>Support from political right and left </li></ul><ul><li>But also opposition from political right and left </li></ul>

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