Recovering the funding for UBI would be the first goal of the Canadian Government. To initiate a program of this size, they would have to be able to recover a good amount of it back quickly or the government could become cash strapped as it evolves…
At first we think, ohh that would be easy, the government could just create the cash needed. Sure, but it has to prove that it can get it back, or at least a good chunk of it to keep it sustainable. We can’t just increase taxes or create claw backs, we have to look at the big picture.
How is the government going to benefit from UBI?
- Increase in Sales Taxes (1% of GST = $7 Billion) keeps coffers flowing
- Residential Property Stability
- Leads to less Evictions due to job loss
- Leads to less Reno-victions due to late payments
- Decreases dramatic long term rental hikes
- Increases ongoing property standards and maintenance
- Gives the Rental Tribunals/Authorities room for true Emergencies from lower court appearances
- Increases likeliness of Exterior Beautification long term from landlords
- Less Stress at home over unpaid rent/loss of food/no utilities
- Residential Property Growth as citizens upgrade housing
- More ability for abused victims to obtain housing
- More ability for young adults to obtain housing
- More ability for disabled to upgrade housing
- More ability for Families to upgrade bedroom count
- Increases industries like truck rentals, utility debt recoveries
- Increased Fresh Food Demand decreases losses declared by farmers and agriculture recovering many tax breaks within the government coffers while recovering farms and expanding rural communities
- A UBI may help Farmers who need help in the off-season for Food and Property Taxes
- Increased Mental Health lowers demand on Healthcare
- Less ER visits
- Increase in Vitamin consumption from healthier foods
- Less frequent doctors visits for disabled for minor health deficiencies from cut-back nutrition benefits which can be re-instituted in the reshuffle of Disability Organizations
- Guaranteed incomes could keep retired families together
- Greater Rent stability encourages growth, within a generation it can help to encourage home ownership and keeping families together in the later years decreasing demand for long term homes that are underfunded and susceptible to disease
- Decreased crime saves funding from over-populated criminal institutions
- Less minor crimes like Shoplifting, theft, and mischief. With more stability at home there can be less children having to contribute to pay the bills
- Tax fraud can be discouraged by being more coefficient for UBI
- Increased reporting of TRUE income from those that don’t declare to keep benefits to survive – This can dramatically improve the GDP by encouraging people to be declarative of their income in the low income bracket
- Decreased crime saves business owners and families from having to rebuild
- Lowering costs in businesses having to rebuild can either save costs incurred themselves or by increased insurance premiums
- Lowers cost to the consumer by not having so much expense and theft
- Universal Income creates higher education sooner
- creating higher income brackets among generations
- training our essential “Skilled Workers”
- increased knowledge and Education scores from lower fatigue
To spend GST on $1000 is $70 … To trade $70 for $1000 is a blessing to the less fortunate and disabled who can budget easier without the constant “Verifications, Audits, and Claw backs” that Administrative Recoveries cost the taxpayer on an on-going and progress track as long as the benefit is Universal and they can earn freely at their pace without monthly claw backs after success followed by stagnation/layoffs.
Although the government means well with clawing back and recovering unjustified expenses, the Administrative costs are gaining an average 2-5% increase each year. Without changing the system and consolidating, the expansion of new services in the social sector will diminish with further cut backs from inappropriate growth.
There has always been talk about uploading programs causes hardship, and it won’t be an easy change. However we can use the existing programs as templates to how we can keep some entirely, some will be partially defunded, changing them to new tasks or specialties such as Housing, Disability Supports.
This is a GOOD thing. It brings change and a more Municipality or Provincial targeted approach to better supports than just a cash payment. Workers within the organizations can pool their collective resources and talents while we transition.
In our opinion, it will take over a year to successfully transition while injecting extra liquidity into our economy as a 1 year “Introduction to Basic Income” above the existing programs.
For some, it could mean replenishing or even creating new retirement savings, paying off old medical bills, and best of all, some will use it to clear old debts and start better credit scores.
If Canada could Pool their resources into a true UBI it could very well mean a housing boom, stability at pumps, work searching ability, increased transportation while municipalities are fighting for fares, stopping the wide-income gap for students who sacrifice study and knowledge for part-time work at minimum wage to make rent at the dorm/shared house.
UBI doesn’t encourage lazyness, that is already there, it encourages growth by not putting a limitation on being a little more than a couch-potato who could just by.
As our economy keeps growing each year, all of our costs (inflation) still happen while many don’t get a raise or even lose their jobs to automation. A UBI helps to keep a ground floor that doesn’t make someone sink to the bottom. A catcher’s mitt over the plate. It’s not a pedestal, but is a stepping stone.
Anyone can be a target of poverty. ANYONE. You could have $1 Billion today, and one market crash later, your borrowing money from your rich investor friends to pay the lawn care guy. You could be a victim, so why not support an initiative that is designed to CATCH you before you hit bottom.