The Numbers
In round numbers, Canada’s population is 30 million and if every citizen
received the Basic Income, the total cost would be $450 billion. Canada’s
current budget is $150 billion leaving a shortfall of $300 billion. Seems
pretty impossible, doesn’t it?
Just for example, let’s say that it takes $50 billion of our current budget
of $150 billion to run the country’s infrastructure and we add this to the
cost of a Basic Income. This would raise our Budget requirements to $500
billion. (The other 100 billion is money paid out to EI, pensions, Indian
Affairs payments, the Armed Forces, Medicare and all other programs that can
be discontinued because the Basic Income will replace them. Plus the single
biggest expense in the budget which is our National Debt.)
According to Stats Can, 11 million Canadians are employed full time and will
continue to be employed. For these Canadians, their Basic Income is paid
through a transfer made by the employer. This transfer will bring the
government $165 billion leaving us with a shortfall of $335 billion. (11
million times $15,000 equals $165 billion)
Let us also estimate that part time workers, and those who make extra income
but do not reach the Family Basic cutoff point at which they are registered
will rebate an additional $50 billion dollars. ( You must remember that it
is in their interest to do so. Remember Scenario 1 in which he remits his
income of $3,250 and yet they receive $30,000 in Basic Income. All
citizens have to realize that the reason for this is to provide "families"
with a Basic Income rather than maximizing individuals income as in the
present system.) We are now left with a shortfall of $285 Billion.
As the government withholds $4500 of everyone’s Basic Income and applies it
to the three Universal Programs plus the debt, this transfer will bring the
government another $135 billion leaving a shortfall of $150 billion. (30
million Basic Income recipients times $4500 equals $135 billion)
Now we come to the tax on "all income" over the $15,000 Basic Income. I
propose a flat tax of 25%.This will raise approximately 45 billion. (The
Basic Income of 450 billion less the Net Domestic Income of 632 billion at
25% will generate 45 billion in taxes.) This will leave a shortfall of 105
billion. I suggest that this shortfall can be raised through the concept of
Wealth Limitation which I have argued for in my essay, "A Message to the
Middle Class on the Financing of The Family Basic Income Proposal."
Additional funding will come from government tariff’s and duties, licenses
and other income sources currently in place.
A. Benefits
1. The core of this idea is the transfer of wealth from individuals to
families. It is not correct to say, just poor families, as some of my
examples have pointed out. It is to put adequate resources available to all
families, no matter what their composition but especially to larger
families. One criticism that might be directed at this approach is that it
would encourage large families. I don’t know whether this is true or not.
Anyone who has had children, knows that it is a 20 year job, hard work,
stressful and time consuming. As a father, I can tell you that I would not
sign up for another 20 year stint to just get another increase in my income.
However, even if it were true, would it be so broad based as to change the
demographics - I think not. If it was, we have a built in safety release in
that we could cut back on immigration if it was important to limit our
numbers in Canada. Perhaps those it might encourage to have large families
are those who love children deeply and would be the best parents.
