CANADA: Canadian Association of Social Workers Recommends UBIG of $20,000 As a Better Alternative Than Negative Income Tax

CANADA: Canadian Association of Social Workers Recommends UBIG of $20,000 As a Better Alternative Than Negative Income Tax

On October 30th 2017, the Canadian Association of Social Workers (CASW) released a position paper recommending a Universal Basic Income Guarantee (UBIG) of $20,000 for all individuals, regardless of income. CASW’s UBIG fulfils the definition of a Basic Income. CASW argues that a UBIG is superior to a Negative Income Tax, which is being tested in other experiments (1).

CASW argues that a universal demogrant model, or UBIG, is “a cost-effective and socially responsible mechanism through which Canada can ensure dignity for all”.

CASW states there have been many federal promises to end poverty in Canada over the past 30 years, in many different forms, including Canada’s support for the United Nations’ Sustainable Development Goals which specifies the need to “end poverty in all its forms everywhere”. Yet in 2016, 4 million Canadians (12.9%) were living in poverty and child poverty rates even increased between 1989 and 2013.

According to CASW, conditional and heavily monitored programs are insufficient and expensive. The combined income support-related expenditures of all federal, provincial, and municipal levels of the Canadian government cost just over $185 billion. Furthermore, their implementation causes a great deal of stress given their unreliable nature, with individuals reporting stress brought on by stigma, marginalization and feelings of disempowerment and hopelessness.

CASW claims that “current social assistance systems in Canada are inadequate and contribute to a cycle of poverty”.

Poverty is a well-known social determinant of physical and mental health. CASW illustrates this with several UBI-related examples from Canada:

  • a difference of more than 20 years in life-expectancy between the high-income and low-income population in Hamilton, Ontario;
  • a reduction of 8.5% on hospitalization during the Mincome basic income pilot project in Dauphin, Manitoba (2);
  • people between 55 and 64 years of age are 50% more likely to experience food insecurity compared to seniors 65 years or older who receive the Old Age Security pension.

From CASW’s perspective, the strengthening of Old Age Security (OAS) and the introduction of the Canada Child Benefit were solid steps towards realizing a UBIG in Canada. Programs like the OAS, which are universal in nature and have few eligibility criteria, are quite inexpensive to operate. In 2013, the total cost of operating the OAS program was 0.3% of the total annual program cost. In contrast, the total administrative cost of Employment Insurance, a program with a high degree of gate-keeping and extensive eligibility criteria, was 8.1% of the total annual program cost.

According to CASW, this cost-saving potential is a fundamental strength of the UBIG which would operate under significantly fewer operational and administrative costs than, for example, a negative income tax model.

CASW further argues that the so-called “benefit trap”, that makes the adoption of part-time work unattractive and is often used to argue against a basic income guarantee, in fact only exists within the negative income tax model. Therefore, the true benefits of a basic income guarantee cannot be realized within the negative income tax model which has formed the basis of all of the pilot projects run so far in Canada.

In addition, a universal demogrant model involves significant benefits to the middle classes giving it a wider support base compared to a program that only targets low-income households.   It will therefore have more likelihood of success.

CASW recommends a UBIG of $20,000 per year with the possibility of additional fully-remunerated casual, part-time, or full-time employment. Individuals with disabilities would receive an extra $6,000 tax free per year. The UBIG should replace only traditional welfare or social assistance programs – not all existing social programming. One’s net income will then be taxed according to progressive tax brackets. This model encourages participation in the labour market.

 

Notes

(1) – A Negative Income Tax does not pay an unconditional income to every individual. Instead, it tops up earnings below a threshold, and charges tax on earnings above the threshold. The administration of a Negative Income Tax poses more challenges than the administration of a Basic Income.

(2) – This is a significant amount considering the Canadian Institute for Health Information in 2014 put the total health expenditure in Canada as upwards of $200 billion.

 

More information at:

Colleen Kennelly, “Universal Basic Income Guarantee: The Next ‘BIG’ Thing in Canadian Social Policy”, Canadian Association of Social Workers (CASW), October 2017

 

Picture: Two sides of the same Loonie … (10/100), Jamie McCaffrey, CC BY-NC 2.0

How can Universal Basic Income Aid a Just Transition?

How can Universal Basic Income Aid a Just Transition?

On September 24th at 6pm EST Equal Right, in collaboration with the Cap and Share Climate Alliance (CASCA), will be hosting an event as part of NYC Climate Week 2024 titled ‘How can Universal Basic Income Aid a Just Transition?’

The event will take place at the Silberman School of Social Work at Hunter College (2180 3rd Ave), and it would be great to have you there (in person or virtually, via Zoom).

Full details of the event, including ticket registration, can be found here

If you’re able, we’d also really appreciate any help you can offer to promote the event, including doing any of the following:

Quote share this tweet (suggested quote: ‘@EqualRightOrg are hosting this event on UBI and Just Transition as part of NYC Climate Week –  check it out if you can! 

Repose this LinkedIn post with your thoughts.

Update on Denver Basic Income Pilot

Update on Denver Basic Income Pilot

In Denver Colorado, a cash distribution program targeting those who experience homelessness is closing in on fully launching. The Denver Basic Income Project (DBIP) seeks to give a basic income to individuals to demonstrate that recipients of direct cash payments are more likely to obtain stable housing, gain more opportunity for stable employment, and empower people to assert their dignity and agency while improving their lives and improve the lives of those around them. The project aims to implement and study methods of building a healthier society, grounded in the values of social justice, anti-poverty, anti-oppression, and self-determination.

Some cash payments have already begun under a soft launch to understand where improvements can be made in the structure and implementation of the study. This approach aims to ensure that the program is as effective as it possibly can be over the 12-month span the full launch will cover. The Graduate School of Social Work at the University of Denver will be the organization conducting the study of results, and multiple organizations in Denver will be assisting in the implementation of the program.

Mark Donovan, the project founder, says “Direct cash payments move toward eliminating wealth inequality and begin to build a healthier community here in Denver and hopefully we’ll create a model for other cities to follow.” DBIP is itself modeled on two successful projects based in Vancouver, British Columbia, and Stockton, California. Both the New Leaf Project in Vancouver, and the SEED project in Stockton showed positive effects on the lives of participants. In comparison to what the United States has currently implemented to help these people, “Our society can do better” says Donovan.

The Mayor of Denver, Michael B. Hancock, is in partnership with DBIP through Mayors for a Guaranteed Income, a network of Mayors throughout the U.S. dedicated to advocating for a guaranteed income. “The Denver Basic Income Project is an opportunity to explore how the philanthropic community and the private sector can augment public support for those living in poverty, particularly our unhoused neighbors, and extend that hand up to stability” said Hancock. Mayor Hancock is concerned about a variety of issues such as homelessness, disparity in opportunity, and a withering middle class because of a lack of equity in economic systems.

There has been a large amount of fundraising for the project that continues. DBIP is still accepting donations towards its goal of securing 7.8 million dollars. DBIP is also currently applying the lessons learned from its initial soft launch and strengthening itself and its relationship with the community, especially leaders and participants from Black, Indigenous, and People of Color (BIPOC) communities. Everything points to DBIP being an extremely promising endeavor worth paying attention to.

If you would like to read more about the Denver Basic Income Project you can read a recent guest column written by Mark Donovan for The Pulse Institute here.

Aaron Lamb, April 11, 2022

‘Forward to a better world!’ International Basic Income Week 2021 starts organizing

by Robin Ketelaars

History
Matthias Dilthey called for a day of basic income in 2006, which unfortunately received little support at the time.*

The first week of the basic income was held in 2008 and was designed as a sub-project of the EU-funded “Basic Income on the way to Europe.” This was initiated by Günter Sölken, from an idea the Basic Income Network Germany (Netzwerk Grundeinkommen) had proposed. It happened with the support of Basic Income Network and Social Cohesion Austria, BIEN Switzerland, Attac branches in Germany, Austria and Switzerland, along with the help of many independent basic income initiatives in Germany, Austria and Switzerland.

In 2009, a significant expansion took place. A call started from various initiatives, and finally 247 organizations and over 2,800 individuals participated. In Germany a website was developed to showcase the activity and creativity, with countless ideas, suggestions, and planned actions, under the editorial supervision of Martina Steinheuer. 

The 4th International Basic Income Week was held 19 to 25 September 2011 with a focus on “Basic Income in Europe“. In Germany and Austria, there were about 100 events and activities: discussions, workshops, readings, theater and film screenings, exhibitions, etc. The fifth International Basic Income Week happened 17 to 23 September 2012 with the focus on “Ways to Basic Income”.

In 2013, the year of the European Citizens’ Initiative for Unconditional Basic Income, “Basic Income a Human Right“, a further internationalization of the 6th week of basic income took place. The Netherlands organized the “Week van het Basisinkomen” but not much action was involved, we were all too busy collecting signatures for the ECI.

In 2014 a Basic Income Week website was set up in English to further internationalize the event by Robin Ketelaars. Manja Taylor handled promotion and activities.

Unconditional Basic Income Europe (UBIE) adopted the 8th International Basic Income Week in 2015 as a key item to organize every year by all countries individually. Also at the 15th Annual North American Basic Income Guarantee Congress, International Basic Income Week was adopted as a way to publicise UBI.

That year, 19 countries participated with live events: Belgium, China, Danmark, Germany, France, United Kingdom, Ireland, Canada, Malawi, Netherlands, Norway, Austria, Sweden, Swiss, Zimbabwe, Spain, South Korea, Hungary, USA. A further eight countries participated on the internet: Australia, Brasil, Bulgaria, Finland, India, Italy, Mozambique, New Zealand, Zambia, South Africa.

9th international Basic Income Week had the motto “Basic income goes worldwide”. In 2016 Basic Income Earth Network (BIEN) contributed to the week´s further globalization by starting a group on Slack for better collaboration. Jenna van Draalen from Canada and Christof Lammer from Austria were among the promoters of the IBIW along with many more UBI activists.  Themes for other yearly events can be found on basicincomweek.org.

International Basic Income Week is a self-organised participatory week. A lot can be done, from spreading the news to friends to organising your own event with films, speakers or creative action. We can help with finding presenters and promoting your event with our shared Basic Income Week website. We welcome new participants who can share time, money or ideas! Get in touch with your regional group or the international coordination team, and let us know what you decide to do! This year there was the start of the Videothon Playlist

From 2018 onwards there have been three synchronised events.
1)    Make a photo and share it on social media with the hashtag #countonbasicincome on the Wednesday
2)    Come and socialize, organize a #basicincomebeer on the Friday
3)    Since 2019 the #basicincomemarch is part of the week on the Saturday

Basic Income Marches
In April 2019, social worker and co-founder of Basic Income NYC Diane Pagen and 2020 candidate for U.S. Congress James Felton Keith came together to organize a public event in a show of force and inclusion for basic income.

2020 saw a huge growth in support for basic income in the United States. It was important to provide different ways for the community to celebrate. All sorts of events, live and online, from a film screening, panel discussions, to a Year of Basic Income Livestream event featuring commentary from Andrew Yang, Andy Stern, and over 10 Mayors from Mayors for a Guaranteed Income and more, marked the important progress made in 2020.

With COVID measures in place, city organizers got creative. From art installations, to bike and car parades, to street corner protests, Income Movement in the US built tools to make it easy for organizers to plan amazing, highly successful events while allowing for safe social distancing for community members. Many people who did not go on the streets posted a photo with the hashtag #talkonyourwalk and held Zoom sessions with shoes.

This year’s motto for International Basic Income Week is ‘Forward to a Better World!’

You can follow #basicincomeweek on the web
* Basic Income Week website
* Twitter: @basicincomeweek (for sharing)
* Facebook: basicincomeweek (also for adding events)
* Insta: @basicincomeweek
*The Basic Income March website (organizers can add your march to the calendar)

Future plans? Who knows? We hope that with BIEN’s support we can involve more countries in India, Africa, Asia and Latin America this year.

How can people contribute to or participate in IBIW this year?
Organize events and spread the B-word!
Social media activists wanted for @insta and other media outlets
There is a Slack group where activities are discussed which you can join: the Basic Income Outreach Group. Please let us know if you want an invite via the contact form.
We’re always on the lookout for more ideas!

*) Basic Income Day
In 2014 a website promoting Basic Income Day was started by Robin Ketelaars.
“If everyone is his own king, nobody has to be the king of the other.” This sentence by Michael Sennhauser (Swiss Radio DRS) in the review of the film Kulturimpuls Grundeinkommen by Daniel Häni & Enno Schmidt and the film scene at Basel SBB train station inspired the crowning of the first 500 heads 1 May 2009 on the market square in Lörrach. Since then, we want to unite with everyone who burns for an unconditional basic income to trigger a wave of change.”
The action was followed up in 2014 by Sylvia Mair and Oliver Der as a Basic Income Day on the 1st of May. This was supported by Scott Santens, a Basic Income activist from the United States, and other activists in Europe and the US.
The website is in use for more “basic income days”.
Human Rights Day is celebrated annually across the world on 10 December. In 2013 we participated by showing the world through our profile pic that an Unconditional Basic Income is a human right. The action this year will take place 4 to10 December.
International Women’s Day on 8 March could also become  a “Basic Income Day”.