2. The second feature is the redistribution of income. Currently, income earned from wages is taxed more than income from other sources such as investment and corporate taxes. This has created a major imbalance in that income tax accounts for 70% of government revenue while corporate taxes only account for 20%. Not only will the tax burden be shifted to a more equal distribution by taxing all income equally, it will still contain the seeds of a progressive tax system. A simple example: John is a single man who earns $40,000 per year. The $15,000 deducted at source, leaves him a $25,000 taxable income which amounts to a tax bill of $6,250. His total income is $15,000 from the Basic Income and $18,750 from his earned income for a total of $33,750. His tax rate is approx 15%. Harry is a single man who earns $80,000 per year. The $15,000 deducted at source, leave him $65,000 of taxable income which amounts to $16,250. His total income is $15,000 from the Basic Income and $48,750 from his earned income for a total of $63,750. His tax rate is approx 20% 3. It will eliminate all payroll taxes. The Basic Income supplants Medicare, Old Age Security, and EI deductions. Therefore employers only have one deduction to make and none out of their money. They rebate to the government $15,000 and that is it. This eliminates massive amounts of bookkeeping and creative accounting that is currently used because of payroll deductions. This lowers overhead, reduces personnel and increases profits which the government taxes at a flat rate of 25%. 4. It will downsize government. As all programs such as CPP, Old Age Security, EI, Workman’s Compensation, disability pensions, government pensions (if they still exist will only require a top up), military pensions, transfers to First Nations and any other income transfers to individuals. Not only will government be smaller, it will need less buildings, land and other infrastructure costs. 5. It will redistribute income back to rural communities. People will find it economical to live in smaller communities and the Basic Income will bring much needed cash which will create a demand for jobs and services. 6. It will restore decent wages to workers. Those companies who are now bringing us lower prices by paying low wages will not be able to find workers unless they pay enough above the Basic Income to attract workers. This has been one of the major flaws of the capitalistic system in that wages are low because employers have a surplus of people who have to work to survive. As this is a tide that will apply to all low wage endeavors, they will all have to raise the price of their product. There will be savings for them in no payroll taxes and less accountancy personnel that will help them offset the demand for adequate wages. 7. Our workforce will change from one in which a person has to work to one that wants to work. For most people, we are synonymous to draftees in the Army. We have to work. With a Basic Income, especially based on family grosses, those who work will be volunteers. I think we will find that the quality of our workforce improves dramatically as we shift from those who are forced to work to those who want to work. 8. Education will be available to all - period, at any time of their life in any way they choose. Post secondary education will be free as well as technical training in vocational colleges. With more people unemployed, education will be the option which will continue to produce a highly educated and motivated workforce. 9. I suggest RRSP and all other forms of tax deferred income be eliminated. As everyone has a basic income of $15,000 which will be maintained by a COLA clause, there may be some who want to top up their retirement but I don’t think they should do it with tax deferred income. 10. I suggest that prisoners forfeit 90% of their Basic Income to pay for their own incarceration, thereby eliminating the cost to taxpayers in the current system. 11. This is a growth model in the sense that automation will continue to reduce the need for a fully employed population. This model allows families to not be dependent on only labour earned income. As automation increases, business profits will rise so that the loss of labour based taxes will be compensated by automated productivity producing profit at the business enterprise level. 12. This model retains many of the good features of the capitalistic model while reducing the need to cause poverty at the lower end. Anyone of enterprise in this model should certainly be able to make money and retain a large part of what he makes. 13. Just as Canadians have used the benefits of Medicare as a way of defining themselves as a people that are different from, for example the Americans, I predict that the The Family Basic Income Program would reduce the tensions of separation suggested by the Province of Quebec and alluded to by other Provinces and increase the national image that Canadians hold of themselves. 14. This is a method that begins to compensate all the unpaid tasks in society, such as child rearing, elderly home care, housework, property beautification, volunteer work, church work and more. 15. We would be the first country in the world to fulfill the Universal Declaration of Rights postulated by the United Nations regarding Article 25. II. Article 25 (1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control. (2) Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.
