Read on Twitter
Let's take the Senator's advice and read the report.
Here's why the PBO's UBI plan would be a disaster for many people with disabilities or medical issues. https://twitter.com/yuenpauwoo/status/1379834229480157186
Here's why the PBO's UBI plan would be a disaster for many people with disabilities or medical issues. https://twitter.com/yuenpauwoo/status/1379834229480157186
Here's the PBO report. I do suggest we all read it. There's a lot there. https://www.pbo-dpb.gc.ca/en/blog/news/RP-2122-001-S--distributional-fiscal-analysis-national-guaranteed-basic-income--analyse-financiere-distributive-un-revenu-base-garanti-echelle-nationale
Here's how the UBI would work. Individuals get a floor of 17K, couples one of 24K. (Q: Which individual in the couple gets the income?)
That is, assuming they file a tax return, which 10-15% of Canadians do not, and something like 97% of the homeless don't. So universal-ish.
That is, assuming they file a tax return, which 10-15% of Canadians do not, and something like 97% of the homeless don't. So universal-ish.
And if someone in your family has a disability (likely using the same qualifications that the CRA currently uses) there's an additional $6,000 top-up.
But here's the crucial part... those benefits are clawed back by 50 cents for every dollar of income earned.
So that disability top-up is fully eliminated after you've earned $12,000 or more a year.
So that disability top-up is fully eliminated after you've earned $12,000 or more a year.
And this clawback is important. At a 50% clawback PLUS the other income-based taxes that exist, low income households would face marginal effective tax rates of 50-65% - higher than some billionaires currently face.
But let's go back with PWDs. If you earn more than $12,000, you lose the entire disabilities top-up. And a person with disabilities (with or without kids) earning more than $45,000 or so gets zero in disabilities top-up or UBI.
But it's worse than that... not only do they get nothing, but they lose an entire suite of benefits currently provided by the tax system. Here's the full list.
These are not trivial losses - just the basic personal exemption losses alone are a couple grand.
But you lose supports for medical expenses, caregiver expenses, disability expenses, etc.
But you lose supports for medical expenses, caregiver expenses, disability expenses, etc.
For some persons with disabilities, that do not have significant medical/disability/caregiving expenses, this may be a good trade-off.
For others, that do have significant medical expenses, this could make them worse off by tens of thousands of dollars.
For others, that do have significant medical expenses, this could make them worse off by tens of thousands of dollars.
In short, any program that replaces needs-based programs with a one-size-fits-all cheque, ends up re-distributing from high-needs to low-needs individuals.
Low medical expenses: Better off with the cheque
High medical expenses: You're toast
Low medical expenses: Better off with the cheque
High medical expenses: You're toast
And we've seen this exact design before. It's the @fordnation Ontario Autism Program design! Replace a bunch of needs-based supports with an across-the-board cheque that doesn't take into account need. https://mikepmoffatt.medium.com/an-ontario-program-shows-the-cruelty-of-the-basic-income-cheques-for-cuts-design-cb60072c2e5e
And guess how replacing needs-based disabilities supports with flat cheques ended?
BADLY. IT ENDED BADLY.
Why on earth would a basic income supporter look at the Ford government reforms and think "that's a model we should adopt!"
BADLY. IT ENDED BADLY.
Why on earth would a basic income supporter look at the Ford government reforms and think "that's a model we should adopt!"
In short, if you think replacing a bunch of caregiver/medical expense/disabilities supports with a cheque, which fully phases out to $0 once you've earned $12,000 is a good idea, re-do your math.
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I’d love to see the meeting where they workshopped this proposal.
Senator 1: We’ve got this basic income program, but it’s expensive. Where should we get the money from?
Sen 2: Corporations?
Sen 3: Wealthy families?
Sen 4: TAKE IT FROM THE KID WITH A SEEING-EYE DOG
Senator 1: We’ve got this basic income program, but it’s expensive. Where should we get the money from?
Sen 2: Corporations?
Sen 3: Wealthy families?
Sen 4: TAKE IT FROM THE KID WITH A SEEING-EYE DOG
