Implementing universal basic income could cut poverty rates up to 40%: PBO
By Canadian Press on February 19, 2025.
OTTAWA — The government’s fiscal watchdog says a guaranteed basic income program at the federal level could cut poverty rates in Canada by up to 40 per cent.
In a new report, the parliamentary budget officer says that a Canadian family in the lowest earning group could expect to receive an average of $6,100 in annual disposable income through such a program.
Higher earners could see their income levels drop because of changes in the tax system to implement the basic income support.
This report is predicting a more modest impact on poverty rates than the PBO’s 2021 report — which said that a guaranteed basic income could cut national poverty rates almost in half.
The PBO says that reduced impact is due to the wages of lower-earning Canadians not keeping pace with the surging cost of living.
The report says introducing a federal basic income program would cost up to $107 billion in 2025, depending on the family definition used to implement the program.
This report by The Canadian Press was first published Feb. 19, 2025.
Craig Lord, The Canadian Press
11-10
I would like to see more of this plan before deciding if I like it!
What I do know, is that increasing minimum wage doesn’t work and inflates prices. Why do I think this?
A large percentage of low wage earners work in grocery stores, restaurants/hotels, gas stations, warehouses, entry level construction,security, etc., so when you increase their wage, the prices of products/services increases, costing the consumer.
Plus, if you increase the wage of the $10 per hour earner to $15 per hour, the one making $15 per hour now believes they should have an increase, and $20 per hour earner and up. The unions then feel they need an increase as well. It is perpetual!
The best way to prevent inflation like this is coming up with tax deductions, supplements, rent supports, and other benefits which does not create the perpetual wage increase, which has already made us unable to compete in many areas of trade in the global ecomony.