we need a basic income in nova scotia · basic income.” (p. 32) •systemic change (long-term)...
TRANSCRIPT
WE NEED A BASIC INCOME IN NOVA SCOTIA
2018 Shaw Lecture
Income guarantees freedom and global security
Elizabeth Kay-Raining Bird amp Pierre Stevens
Basic Income Guarantee - Nova Scotia
httpswwwfacebookcombasicincomeNS
Topics
1 BIG-NS and its activities
2 The Nova Scotia context
3 Why a Basic Income in Nova Scotia
4 Funding a Basic Income
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
THATrsquoS WHY BIG-NS WAS FORMED
Since 2015 httpswwwfacebookcombasicincomeNSMember Basic Income Canada Network httpswwwbasicincomecanadaorg
BIG-NS
Goalsbull Educate
bull Advocate
bull Feasibility study how best to implement a Basic Income in Nova Scotia
bull Implement a Basic Income in Nova Scotia
BUT we do not want just ANY Basic Income Guarantee
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Topics
1 BIG-NS and its activities
2 The Nova Scotia context
3 Why a Basic Income in Nova Scotia
4 Funding a Basic Income
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
THATrsquoS WHY BIG-NS WAS FORMED
Since 2015 httpswwwfacebookcombasicincomeNSMember Basic Income Canada Network httpswwwbasicincomecanadaorg
BIG-NS
Goalsbull Educate
bull Advocate
bull Feasibility study how best to implement a Basic Income in Nova Scotia
bull Implement a Basic Income in Nova Scotia
BUT we do not want just ANY Basic Income Guarantee
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
THATrsquoS WHY BIG-NS WAS FORMED
Since 2015 httpswwwfacebookcombasicincomeNSMember Basic Income Canada Network httpswwwbasicincomecanadaorg
BIG-NS
Goalsbull Educate
bull Advocate
bull Feasibility study how best to implement a Basic Income in Nova Scotia
bull Implement a Basic Income in Nova Scotia
BUT we do not want just ANY Basic Income Guarantee
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
THATrsquoS WHY BIG-NS WAS FORMED
Since 2015 httpswwwfacebookcombasicincomeNSMember Basic Income Canada Network httpswwwbasicincomecanadaorg
BIG-NS
Goalsbull Educate
bull Advocate
bull Feasibility study how best to implement a Basic Income in Nova Scotia
bull Implement a Basic Income in Nova Scotia
BUT we do not want just ANY Basic Income Guarantee
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
BIG-NS
Goalsbull Educate
bull Advocate
bull Feasibility study how best to implement a Basic Income in Nova Scotia
bull Implement a Basic Income in Nova Scotia
BUT we do not want just ANY Basic Income Guarantee
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
6 BIG-NS Principles
1 Autonomy BI goes to individuals not families bull Allows individuals to make their own decisions
2 Universality amp Unconditionality Everyone is deserving
3 Dignity Treat all people with respectbull No means testing or need to prove deservedness
4 Universal responsibility funded through a progressive taxation system
bull Provincial and federal governments mutually responsiblebull Redistribution of wealth
BIG-NS 2017
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
6 BIG-NS Principles
5 Economic integrity financially viablebull Accompanied by laws that prevent siphoning off the BI eg
minimum wage labor housinghellip
6 Social integrity BI is only one part of comprehensive and integrated supports
bull BI would replace some services eg income assistance
bull BI would not replace others eg disability supports
bull Still others should be added or augmented eg pharmacare dental care mental health and addiction services
BIG-NS 2017
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
BIG-NS Educationeg Conferences
April 2016 October 2017Next conferenceApril 27 2019Halifax public library
Speakers includeEvelyn ForgetCatherine Mah
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
BIG-NS Advocacy
bull Community groups stakeholders
bull Politiciansbull All parties
bull All levels of governmentmdashmunicipal provincial federal indigenous
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Politicians
Federal Provincial Municipal Indigenous
Scott BrisonAndy FillmoreGuy CaronMegan Leslie
Randy DeloreyLabi KousoulisJoachim StroinkBrendan MacguireMaureen MacDonaldLisa RobertsSusan LaBlancGary BurrillBarbara AdamsCommunity Services staffNancy MacLellanBrandon GrantRhonda Judge
Mayor John SavageCity councillorsWaye masonShawn ClearyLisa BlackburnSam AustinLindell SmithLorelei NicollTony ManciniRichard ZurawskiSteve CraigRussell WalkerCPED
Native Council of Nova Scotia
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
BIG-NS Participated in the HRMUnited Way Poverty Solutions Initiative
bull Immediate recommendation 15 ldquoWork with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic incomerdquo (p 32)
bull Systemic Change (long-term) recommendation 245 ldquoImplement a basic income as a means to provide a living income for low-income and marginalized populationsrdquo (p 46)
Building Poverty Solutions Ideas for Action A Community Report HRM 2018
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause poverty rates in Nova Scotia are high poverty is racialized amp
vulnerable groups are over-represented
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Child amp Family Poverty in Nova Scotia
CCPA 2017 Report Card on Child amp Family Povertyhttpswwwpolicyalternativescapublicationsreports2017-report-card-child-and-family-poverty-nova-scotia
216 overall
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Poverty is Racialized
CCPA MacDonald amp Wilson 2016 httpswwwpolicyalternativescapublicationsreportsshameful-neglect
African Nova Scotians
bull 321 live in poverty
Children
bull 396 live in poverty
Youth 18 ndash 24
bull 502 live in poverty
bull (Duvet 2017 NS Advocat)
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
People with a Disability are More
Impoverished
Stats Canada (2017) httpswww150statcangccan1pub75-006-x2017001article54854-enghtm
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause poverty damages people
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
The ldquodamages [poverty] caused to human beings life chances to communities and to social and economic productivity and progress are clear and cannot be ignored Poverty is the best predictor of early illness early hospitalizations longer hospital stays and earlier death It is a reliable predictor of substance abuse food insecurity poor education outcomes and for some trouble with the lawrdquo (p 16)
Segal H (2016) Discussion paper on Ontario pilot project httpswwwontariocapagefinding-better-way-basic-income-pilot-project-ontario
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
50 of illnesses are caused by factors related to poverty social determinants of health
Canadian Medical Association httpswwwcmacaEnPageshealth-equityaspx
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause social assistance rates and minimum wages are not enough
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Provincial Social Assistance Rates
NS Total Welfare Incomes
2016 LICO Poverty Gap Welfare Income as of LICO
Single
employable
$7349 $17485 -$10136 420
person with
disability
$10181 $17485 -$7304 582
single parent
one child
$17727 $21281 -$3554 833
couple twochildren
$26429 $33060 -$6631 799
Tweedle Battle amp Torjman (2017) Caledon Institute of Social Policy httpwwwcaledoninstorgPublicationsPDF1086ENG2Epdf
Note LICO = Least generous measure of poverty (compared to LIM Market Basket)
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
What if you work full time at minimum wage--$11hour
(Stats Canada 2018 httpswww150statcangccan1pub75f0002m75f0002m2016002-enghtmhttpswww150statcangccat1tbl1entvactionpid=1110024101amppickMembers5B05D=22 )
Family size Rural NS LICO-BT
HalifaxLICO-BT
1 Full-time Worker Income Before Taxes
1 $17175 $21487 $20020
2 $21382 $26748 $20020
4 $31915 $39926 $20020
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause poverty is expensive
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Health Costs in Nova Scotia
MacEwen amp Saulnier 2010 CCPA
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty
BIG-NS
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause paid work is often insecure and increasingly precarious
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Work Is Increasingly Precarious
Lewchuck et al 2015
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause providing more income reduces poverty and its negative effects
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Impact of Old Age Security
Stats Canada 2012 httpwww4hrsdcgcca3ndic1t4r-engjspiid=23M_4
Guaranteed Income Supplement (GIS) 1976Spousal allowance 1975 1985Allowance for survivor
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
After the introduction of Guaranteed Income Supplement food insecurity rates dropped from 22 to 11 and health improved despite aging
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
WHY A BASIC INCOMEBecause it works
Itrsquos not all about money but itrsquos always about money
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Research shows that a Basic Income
bull Decreases health care costs
bull Reduces high school drop-out rates
bull Increases engagement in post-secondary education
bull Increases work choices
bull Radically reduces poverty
bull Stimulates urban and rural economies money stays in the community
eg Forget E (2018) Forget E (2011) Forget E (2013)
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Inspirations from Last Night
ldquoWhatever you do you must have a consciousness of victoryrdquo Four in the Moment
ldquoWe need to discover ways of generating collective self-carerdquo Angela Davis
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
HOW TO FINANCE A BASIC INCOME IN
NOVA SCOTIAPierre Stevens
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
or
How eminently affordable a Basic Income is
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
$21 billion
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Nova Scotia Department of Community Services
Basic Income Analysis March 15 2018
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a ldquoGuaranteed Minimum Incomerdquo (GMI)
100 LICO ($16730)
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GMI 100 LICO ($16730)
Program Costs = $21 billion
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either highly expensive and inadequate
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Nova Scotia Department of Community Services Basic Income Analysis March 15 2018
The cost to provide each household with a GIM 100 LICO ($16730)
Program Costs = $21 billion
Concluded that GMI options are either inadequate or highly expensive
Therefore Income Assistance Programs should continue
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Costs for a GMI 100 LICO =
$21 billion
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Costs for a GMI 100 LICO =
$21 billion
Too Expensive
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Costs for a GMI 100 LICO =
$21 billion In-scope programs =
$409 million
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
In-Scope programsbull Income Assistance 2385
bull Poverty Tax Reduction tax Credit 37
bull Nova Scotia Child Benefit 260
bull Affordable living Tax Credit 660
bull Low Income Tax Reduction 78
bull Disability Tax Credit 230
bull Heating Assistance Rebate Program 103
bull Property Tax Rebate for seniors wGIS 73
bull Provincial Income Tax Refund Seniors on GIS 95
bull Age Tax Credit 171
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Department of Community Services assumptionsOnly Department of Community Services budget considered
No other NS government department budgets considered
No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (eg health savings)
No federal cooperation
Top-Up Model winners and losers
GMI 50 LICO would cost $828 million
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
NS Department of Community Services says the door is closed Costing has been
done and a GMI is too expensive
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
BIG-NS says
Time to do a real feasibility study with a more progressive model
and a broader lens
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
A More Progressive Modelwith a Broader Lens
Not just a Top-Up Model A Negative Income Tax Model
Not only the Department of Community Servicesrsquo responsibility
Not only a Nova Scotia responsibility
Society at large will benefit
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
A Negative Income Tax Model
bull A Negative Income tax model has several features that can vary
bull The Benefit Level the maximum benefit payable to any individualbull The Reduction Rate the percentage decrease of Benefit Level
due to higher earningsbull The Break-Even Point the income at which you receive no
benefit
bull Cost estimates for all of Canada vary from $50-80 billion
bull So for Nova Scotia cost would be about $2 ndash 3 billion
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
A Negative Income Tax Model
bull An example
bull A $20000 basic payment at a 50 reduction rate (this means that for every additional dollar earned the worker will receive 50 less in Negative Income Tax payments
1 Someone with an income of $0 would receive an NIT payment of $20000
2 If they take a job that paid $20000year they would receive a top-up of $10000year
3 If they take a job that paid $30000 the top-up would be $5000
4 Once they would receive $40000year they would receive no top-up
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
SO HOW DO WE PAY FOR A BASIC INCOME IN
NOVA SCOTIAFunding for a Basic Income must be a joint Federal-
Provincial responsibility
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Where can the $21 billion come from
The broader lens
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
The Broader Lens
1 Nova Scotia Budget line revenue offsets
2 Future revenues
3 Further In-Scope Programs Provincial Tax credits
4 Federal Non Refundable Tax Credits
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
1 Nova Scotia Budget line revenue offsets
Budgetary savings across departments
bull Community Services Income Assistance ~$245million
bull Education student loans a part of the $46million budget
bull Small Business Development loans ~$105 millionbudget
bull Health savings (research shows that there is a drop of 8 in Hospital Costs) 8 of 42 billion = $330 million
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
1 Nova Scotia Budget line revenue offsets
bull HST-GST rebates
bull Housing and Family Services ~$40 million
bull Judicial Criminal System $32 million - $60 million (MacEwen amp Saulnier 2010)
bull Criminalization of Poverty Incarceration
bull Others (eg Service design and Delivery) $20 million (income Assistance Field Staff)
Total ~$713 - $846 million
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
1 Nova Scotia Budget line revenue offsets
Total ~$713 - $846 million
According to Department of Community Services Basic Income Analysis $828 million is the GMI cost 50 LICO
So we could pay for a 50 LICO Basic Income
This analysis is already more progressive than their model as it does not fold the Nova Scotia Child Benefit into the revenue offsets
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
2 Future Revenues
bull Intergenerational Poverty $105 - $185 million (MacEwen amp Saulnier 2010)
bull Lost Productivity Income Tax revenue $135 million (MacEwen amp Saulnier 2010)
bull Increased HST Revenue
bull Food Security Savings Foodbanks
bull Homelessness Long term mental health etc
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
2 Future Revenues
These future revenues of $240-$320 million are a return on investment if we had a GMI 50
LICO
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
2 Future Revenues
Economic stimulation
Canadarsquos GDP increased by 05 after the introduction of the Canada Child Benefit
If we conservatively estimate a similar effect from the introduction of a BI in Nova Scotia this could result in an increase of Nova Scotiarsquos GDP by $50 million
(The Governor of the Bank of Canada in October episode of CBC ldquothe Houserdquo )
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
3 Further In-Scope Programs Provincial Tax creditsProvincial Revenue (some of the In-Scope Programs)
bull Poverty Reduction Tax Credit $ 37
bull Affordable Living Tax Credit $659
bull Low Income Tax Reduction $ 78
bull Heating Assistance Program $103
bull Property Tax Rebate $ 73
bull Etc etc
bull Cost savings at the Provincial level $160 million
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Total Financial Benefits to Nova Scotia from a Basic Income
$490-530 million
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
4 Federal Non Refundable Tax Credits
bull Our analysis seems to indicate that Nova Scotia can not only afford a GMI 50 LICO Basic Income on a stand alone basis but will financially benefit from it
bull However this modest GMI can have many winners and losers (but less than DCSrsquos model)
bull Can we harmonize with a Federal Component
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
4 Federal Non Refundable Tax Credits
bull ldquoWe argue that a grand plan for a basic or guaranteed income is not necessary because self-financing redesign of existing tax credits to be refundable can better target benefits to low-income families while improving tax equityrdquo
bull hellip ldquoImplementing a ldquouniversalrdquo guaranteed basic income (UGBI) amounts to adoption of changes to the tax system that can be essentially self-financing while improving tax equity and the transfer of benefits to those households most in need of income assistancerdquo
(Stevens amp Simpson 2017)
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Federal and Provincial Revenue Neutral Tax Reform
bull Basic Income for single adult = $9954
bull Disability Top-up = $2150
bull Caregiver Top-up = $1200
bull Nova Scotia can finance GIM 50 LICO = $8365
bull Total = $18319
bull Equivalent to a 110 LICO
(Stevens amp Simpson 2017)
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Conclusion
bull A Full LICO Basic Income is affordable for Nova Scotia
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Recommendation
That the Nova Scotia government immediately initiate a progressive
interdepartmental Feasibility Study in cooperation with partners from the
Nova Scotia community as outlined by Basic Income Nova Scotia
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
Eggleton Corak Forget Lewchuk amp Raphael (2018) The Poverty Inequality and Job Challenge The Case for Basic Income in Canada Lindsay ON Fireside Publishing
Final ThoughtThere are those who suggest that incremental improvements to existing programs can eventually accomplish reductions or even eradication of poverty and greater equality I doubt it We go from government programs to raise benefits to those that implement austerity measures Its been a step forward then a step back As the quote from Senator Croll demonstrates we havenrsquot moved the yardsticks much in decades Another illustration of this relates to the Canada Child Benefit This is a substantial measure taken by the Trudeau government which touts that it is taking 300000 children and their families out of poverty Thatrsquos great but what about the remaining one million Canadian kids still in poverty When will their turn come Governments of any political stripe bring in big programs that partly address an issue and then move onto other areas of need to fulfill a wide range of election promises Incrementalism has not worked enough for those in need People need a firmer base from which to move forward in their livesItrsquos time to end poverty and reduce inequality in this country we are blessed to live in Itrsquos time to improve equality of opportunity and better sharing of our prosperity Itrsquos time to explore a new way a new approach Itrsquos time for Basic Income in Canada
THANK YOU
THANK YOU