Universal basic income program could cut poverty up to 40%: Budget watchdog [Video]

The government’s fiscal watchdog says a guaranteed basic income program at the federal level could cut poverty rates in Canada by up to 40 per cent.

In a new report, the Parliamentary Budget Office (PBO) says that a Canadian family in the lowest earning group could expect to receive an average of $6,100 in annual disposable income through such a program.

Higher earners could see their income drop because of changes in the tax system to implement the basic income support.

The report says introducing a federal basic income program would cost up to $107 billion in 2025.

But the PBO also assumes that other social supports would be cut to implement the basic income, resulting in a net cost to the federal government of between $3.6 billion and $5 billion, depending on the exact model and family definition.

The PBO’s analysis is based on Ontario’s 2017 basic income pilot …