The cost of sending out cheques to qualifying Canadians could reach $107B in 2025, but the majority of that would be offset by cuts or changes to tax credits
A PBO report suggests a guaranteed basic income (GBI) program in Canada could reduce poverty rates by up to 40%. The cost of implementing such a program, estimated at $107 billion in 2025, would largely be offset by changes to tax credits and reductions in tax benefits. The report highlights that higher earners may see income reductions due to tax changes. The analysis, based on Ontario’s 2017 pilot project, considers two family models: the "nuclear family" and the broader "economic family." The latter model would reduce poverty rates more significantly, particularly benefiting Manitoba and Quebec. Advocates argue that traditional welfare programs may deter enrollment, while political figures, including the NDP and Liberal leadership candidates, have expressed support for GBI. The report emphasizes the need to integrate GBI with Canada’s existing social safety net.
