Updated: October 2021
November 5, 2020 the Parliamentary Budget Officer released an updated report on the cost of a Basic Income in a blog post. This update, has been followed up with a Cost Analysis since, however that Analysis was only done for the lowest scenario.
To read the update click here.
This new update had included adjustments after taking into consideration the changes to EI eligibility and with the Canada Response Benefit. Which as of this writing is about to end on October 23, 2021.
As always, we base our numbers off of Scenario 3, which costs the most but benefits as many people as possible including the $70,000 to $120,000 household range increasing the amount of eligible people by 5,119,000 or 25% more.
Here are some quick facts on the new update:
Change in amount of people eligible
From 19,012,000 to 19,886,000 (2022-23)
Disability Amount Remains
The amount stays the same at $6,000 per year as non-means tested. Meaning even if they become employed they can count on that $500/mth until they earn $120k
5 Year Costing Estimate
The PBO in this report gave a 5 year outlook. It estimates that the Fiscal year 2024-25 a Basic Income would cost $201,052,000 for 19,950,000 Canadians.
Why should we do it?
This means if we don’t do this quickly, waiting years may make us lose years of inflationary avoidance. Because of the Non-Taxable benefit, a Basic Income would cut the divide between productivity, and technology versus labour.