How would basic income work?
A BIG Pilot for PEI
We advocate for a Basic Income Guarantee that delivers benefits through the tax system. People living on low income will receive a top-up to a livable level so no citizen lives in poverty. BIG invests in people so their basic needs are met.
The system is simple.
- All adults below the poverty line (livable income threshold) receive a benefit, probably monthly, to bring them up to livable income.
- BIG is based on three elements:
- A maximum level for the benefit is set at the livable income threshold
- A reduction rate so that if the person receiving BIG gets other personal income, the maximum level benefit will be affected by a reduction rate (for example the benefit will be reduced (taxed) by 50% personal income attained).
- A break even level is the point at which the amount that is taxed back is equal to the maximum benefit.
- A 5-or-so-year pilot for PEI to test the positives and negatives outcomes of the system.
One possible model: A pilot program to show that a Basic Income Guarantee is the right way for PEI to invest in people and eradicate poverty
- A five-year pilot
- 1,000 participants in the program
- A control group, to demonstrate benefits
- A model that will scale up for the whole province
We are consulting with community members for their wisdom. What are your ideas?