A Safety Net for Your Income
A Guaranteed Basic Income (GBI) is a regular, unconditional income that provides financial security and helps individuals meet basic living needs, paid to all Canadian adults whose income falls below a specified amount. Currently, there is no Basic Income for adults with no children.
Advocates agree that a future GBI program should be:
Universal: Available to all Canadian adults and residents.
Unconditional: Not tied to employment, education, or training. Receiving GBI would be based on taxable income. The GBI could be available when there are significant changes in income or number of family members.
Adequate: Set at a level that covers basic living needs. No Canadian would live in poverty.
Gradually reduced: Benefits would decrease gradually as other income increases.
Regularly paid: Would be made bi-weekly or monthly.
Dignified: Allows Individuals and families to make their own choices.
Efficient for the government: Compared to traditional welfare programs, GBI simplifies and reduces government administration.
Basic Income advocates across Canada, including Basic Income Calgary, support the Canadian Consensus Statement on Basic Income
Calgary's Poverty Gap
Calgary’s poverty gap increased by 8% from 2015 to 2022,
while rent for a 2-bedroom rose by 17%.
Poverty gap: How far below the poverty line low-income households are, on average.
https://enoughforall.ca/articles/the-poverty-gap-is-growing-in-calgary
https://regionaldashboard.alberta.ca/region/calgary/average-residential-rent/#/?from=2018&to=2022
Canadian and Albertan social support systems are often complicated, classify people, and provide too little money, leaving many Calgarians behind.
If Canada and Alberta had basic income, people would be:
Stable: A basic income would let people have a steady source of money they can count on.
People can plan for the future.
Empowered: People could take control of their finances, making it easier to go to school, get training, care for loved ones, or start a business.
More active in the community:
Adequate income makes it easier for everyone to join in community life, which leads to better health, happiness, and stronger social connections.
Stimulating the economy:
Income would be spent directly at local businesses, boosting the local economy.
Social supports currently available would complement existing programs such as Universal Health Care, Dental Care, public education, child care and more.
Our Guiding Framework
Coalition Canada Basic Income Network, of which Basic Income Calgary is a part, calls for a Basic Income plan to include the following principles:
Everyone can receive BI payments:
Any Canadian and resident can receive basic income. How much will depend on income and family size.
Enough Money to Live On:
The payment must be enough to cover essentials such as housing, food, a phone and internet, and getting around town.
No Conditions:
You don’t have to have a job or take training to receive basic income. People can choose what is best for them and their families.
Payment for Each Adult:
Each adult gets paid, so no one is forced to rely on another family member.Supports, Not Replacement: Basic income works alongside existing services like healthcare, education, and social housing. It doesn’t replace them, and it doesn’t stop anyone from getting other specialized help when they need it.
Working Together:
Basic Income programs should be made with help from the federal, provincial, and territorial governments. It is important to include Indigenous peoples as well as leaders from disabled, women, racialized and 2SGLTQIA+ communities because they have good ideas about what works best for them.
Are UBI, GBI and BIG the same?
Not all basic income programs work the same way.
Some are for certain people, while others are for everyone.
That’s where Guaranteed Basic Income (GBI) and Universal Basic Income(UBI) come in.
What Is Guaranteed Basic Income (GBI) or Basic Income Guarantee (BIG)?
GBI and BIG are the same idea with different wording. GBI is about giving people money. The government only gives it to people who really need it.
Only some people get it:
You usually earn less than a certain amount of money to qualify.
Based on need:
The government checks if you need extra help based on your taxable income. If you have a lower income, then you get the money. The Canada Child Benefit (CCB) for families and Guarantee Income Supplement (GIS) for seniors are types of GBI.
Helps the most vulnerable:
GBI would help those who are struggling the most, so no one is left behind.Let’s say a province decides to have a Guaranteed Basic Income.
They might set a rule that says, “If your family earns less than $40,000 a year, you get $500 every month.” If your family makes more than that, you don’t receive the payment.
Why Would a Country Want Guaranteed Basic Income?
Here are some common reasons people like GBI:
Focuses help where it’s needed:
Only people with low incomes get the extra help.
Costs less money:
Because not everyone gets it, the government doesn’t spend as much as with UBI.
Reduces inequality:
It helps narrow the income gap between rich and poor.
But GBI also has some challenges.
For example, some people with low incomes do not file their income tax.
What Is Universal Basic Income (UBI)?
Universal Basic Income (UBI) is slightly different. It is a program where everyone receives regular payments from the government, no matter who they are, how much money they have, or if they have a job. The word “universal” means that it is for everyone.
Everyone gets it:
No matter if you are rich or poor, old or young, have a job or don’t have a job, everyone gets the same amount of money.
No special requirements:
You don’t have to do anything special to get it, like look for a job or fill out a lot of forms.
Regular payments:
You get the money every month or every year, again and again.Some people will not have more money: people with higher incomes will pay back this money in income tax.Imagine a country with a Universal Basic Income.
If the government decided to give $500 every month to every person in the country, then your neighbor, your teacher, your parents, and even the wealthiest people would all get the same $500 every month. That’s what “universal” means!
Why Would a Country Want Universal Basic Income?
There are many reasons people like the idea of UBI:
No one is left out:
Since everyone gets it, no one is forgotten or feels bad about needing help.
Simple and fair:
It’s easy to run because there are no complicated rules to decide out who gets the money.
Reduces poverty:
It can help people who don’t have enough money to buy what they need.
There are also some questions and problems.
For example, if everyone gets money, even people who are already rich, will there be funds for other important things like hospitals and schools? Some people worry it might cost too much.
how are UBI and GBI Alike?
Although UBI and GBI are different, they have common points:
-Both give people money to help with their basic needs.
-Both reduce poverty and help people live better lives.
-Both are ideas that governments think about to make life fairer for everyone.
how are UBI and GBI DIFFERENT?
let's look at the differences side by side
Universal Basic Income (UBI)
Who gets the money?
UBI: Everyone.
Rules:
UBI: No requirements; everyone gets it.
Cost:
UBI: More expensive, since it’s paid to everyone.
Fairness:
UBI: Some people think it’s fair that everyone gets help.
Others think it’s unfair for the rich to get it too.
Guaranteed Basic Income (GBI)
Who gets the money?
GBI: Only people who need it.
Rules:
GBI: There are rules about who can get it.
Cost:
GBI: More affordable because it is just for some people.
Fairness:
GBI: Some people think it’s fairer because help only goes to those who truly need it.
A Story to Make it Clearer
UBI is like if your teacher brought kiwi fruit for the whole class, even if some students brought their own fruit and some didn’t have any. Everyone gets a kiwi, no matter what.
GBI is like the teacher giving kiwi fruit to students who didn’t bring any snacks.
The students who already have snacks don’t get an extra kiwi.
Which One is Better?
Basic Income Calgary and most Canadian BI supporters agree with Guaranteed Basic Income.
It is better to help the people who need the money the most.
It is also like other Canadian programs that help people with more money: Canada Child Benefit and Guaranteed Income Supplement.
Top 5 Questions about Basic income
How can Canada afford Basic Income?
Canadians pay for poverty through more health care costs, petty crimes that use police and court services and jail time and lastly, through lost productivity.
Examples of how BI costs can be paid for include decreasing subsidies for the wealthy, taxing financial companies and large companies, or decreasing personal tax credits.
Why should taxpayers pay for BI?
There are several ways large businesses and wealthy people can contribute more to government revenue.
When a BI program is developed, it should not affect the taxes of middle or lower income earners.
Will people work if they have basic income?
Many studies around the world and in Canada have proven almost everyone will work and in some cases, find a better job when receiving basic income. Employment rates remain almost the same when basic income is provided.
Some people will opt to stay at home to provide child care or elder care or to develop artistic talents or improve their education
Will people spend money on drugs, alcohol or other unhealthy choices?
No, in fact when people have a dependable income, their stress and anxiety decreases. Street drugs, alcohol and tobacco use decrease.
BI costs and downstream savings Findlay et al USask 2023, p.17 https://cuisr.usask.ca/documents/basic-income-presentation-for-april-28-2023.sk-imf-edits.pdf
Why can’t everyone get a job?
Some people cannot get jobs easily. Young adults, especially young men; disabled adults; racialized and Indigenous adults have higher unemployment rates than middle age, white and able-bodied Canadians.
Many are also underemployed, often with minimum wage jobs. Minimum wage work, even full-time, is not enough to meet basic needs.
The Living Wage for Calgary is $26.50/hour compared to Alberta’s Minimum Wage of $15/hour.
https://www.livingwagealberta.ca/what-is-a-living-wage
https://www.livingwagealberta.ca/common-questions