GLBI is not UBI Bill C-223

Bill C-223 Guaranteed Livable Basic Income

Vote

A vote is coming up for private member's Bill C-223 (Leah Gazan) for a Guaranteed Livable Basic Income (GLBI) in the Federal Parliament of Canada. GLBI is a poor substitute for the real thing: Universal Basic Income (UBI). However, the bill for GLBI may get the ball rolling so that we can achieve the real thing. AI and automation are advancing much more quickly than most people think, and many workers will be displaced. Our existing system (essentially a pretty terrible GLBI by another name) is absolutely not up to the task. The advantages of UBI over GLBI primarily stem from the 'U'. Because UBI is universal—everyone receives it by virtue of being a Canadian over the age of 17—there is no risk of people falling through the cracks or less savvy individuals being unable to navigate the convoluted entitlements systems we have put in place. With UBI, you can't be a citizen and 'cheat' to get it when you are not entitled because everyone is entitled, and everyone receives it. People with higher incomes simply have their payments clawed back by the tax system.

Easily Introduced

Aside from the need to overhaul our broken entitlements system (which needs fixing whether with UBI or not), the only requirements are to issue the money and adjust the tax rates. We should phase it in to monitor its impact and adjust other elements as necessary, but we can start that tomorrow. Yes, tomorrow. As automation begins to change work, we will seamlessly accommodate these changes.

Additive, Revenue Neutral

UBI is additive and can be net revenue neutral. People at the higher income level will take a hit, but it’s one they can easily withstand, and it will still leave them with much more than anyone else. Those individuals are most likely to benefit from the economic advantages of funds being spent by people at lower income levels because those at lower income levels must spend that money to make ends meet, while those at the top own, control, or benefit from everything.

Phasing to Prevent Inflation

Phasing it in means there will be no sudden inflationary shock. Adjusting the tax system to ensure it is revenue neutral means it will not impact other programs and will not create additional currency that drives overall inflation. After the UBI is accounted for, the government will still have as much revenue as it had before—that’s what 'revenue neutral' means.

Preliminary Sketch

The figures I used came from the federal government. They are not entirely current and do not account for the overall tax situation, but they provide a good picture of the concept, how it can be revenue neutral, how it affects everyone regarding taxes, and still noticeably benefits all of the bottom 60% of income quintiles while representing a clear step up for those in the bottom quintile.

Because it is revenue neutral, it allows for long-term adjustments to other entitlements to alleviate some tax burdens while still genuinely guaranteeing that everyone receives net additional benefits.

I need to gather better data for a complete picture, but I was surprised by how entirely doable this is, how it does not unduly punish the top quintile, and the incredible extent to which it benefits those who need it most. I highly recommend that people contact their MP to ensure it gets passed and to communicate that framing what should be UBI as GLBI unnecessarily invites failure, guarantees more expenses, and, based on past experience, ensures that it will not help all those who need it.

Contact Your MP

You can send a message to your own MP here:

https://www.leahgazan.ca/glbi_letter_2024?utm_campaign=roundtable_announcement&utm_medium=email&utm_source=mpleahgazan

A sample letter is in place there. I wrote my own text because I have a long-term interest in this issue and I have things to say. In particular, I am deeply concerned that the UBI idea will get lost and that an all-but-useless duplicative program for GLBI will end up consuming resources that could have gone to people as UBI but will instead be absorbed by a bureaucracy that forces our most vulnerable citizens to beg for assistance.

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To my MP:

I urge you to vote in favor of Bill C-223 to initiate meaningful discussions on basic income. If given the opportunity to speak, please emphasize that we already have a program resembling a Guaranteed Livable Basic Income (GLBI) under a different name, and it has proven to be fundamentally flawed.

The concept of GLBI, which attempts to mimic Universal Basic Income (UBI), is not a viable solution. UBI is essential because it allows for a straightforward distribution of funds to everyone as soon as they are needed. It guarantees that every individual receives at least a minimum income, unlike GLBI, which is susceptible to mismanagement and lacks clarity regarding who qualifies for assistance.

The 'U' in UBI signifies that it is unequivocal who receives support (everyone) and how much they receive. UBI can be implemented without the extensive bureaucracy associated with means testing, ultimately dismantling the waste and unfairness inherent in current entitlement programs that often disadvantage the most vulnerable among us.

A genuine UBI could be initiated almost immediately, with a phased approach to ensure proper implementation. For instance, a monthly payment starting at $122.20 in the fourth quarter of this year, increasing by 15% quarterly, could reach $2,000 per month by the fourth quarter of 2029. This initiative could be made revenue-neutral by adjusting tax rates, primarily affecting the highest income quintile, while over 60% of the population would see an increase in their after-tax income. Those in lower income brackets would have the opportunity to fully participate in the economy, which would, in turn, benefit all income levels.

By 2030, we could establish a robust social safety net and foster a happier, more prosperous society, but this is only achievable through a comprehensive Universal Basic Income that reaches everyone. The current GLBI proposal is inadequate and fails to address the needs of those who require support the most.