Basic income guarantee seems like a good idea, so why hasn't it happened?

This story is from this week's episode of the new CBC podcast Good Question, P.E.I. 

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A detailed report on guaranteed basic income released last fall says it would drop the poverty rate on P.E.I. from 10 per cent to two per cent.

The concept has support from all three parties in the P.E.I. Legislature. And the federal government is interested in partnering on a pilot project.

So what's the holdup? 

Good question, Joseph Spriet of Montague. 

"We've kicked this thing around for a long time now and I sort of feel like, at least we ought to go ahead," he said.

"Especially if it's being cost-shared by the federal and provincial government, why would anybody be against it?"

19:42What's the BIG idea on basic income?

The idea of a basic income guarantee — making sure everyone has enough money in their bank accounts to live — has been floated on P.E.I. for years. A recent report says the Island is the perfect trial ground for the rest of the country. So what's the holdup? Trish Altass is here to explain how it would work and bust some myths. 

Spriet reached out to CBC's new podcast, Good Question, P.E.I. And host Nicola MacLeod reached out to former Green Party MLA Trish Altass, who was part of a cross-Canada team that worked on the report outlining how the pilot project would work on P.E.I.

Altass refers to a basic income guarantee as an "unconditional cash transfer paid to adult residents living in a family with income under a certain threshold."

It would not replace social assistance or the Child Tax Benefit, though Altass argues it would reduce the costs associated with other social programs.

The report recommends a basic income amount to 85 per cent of the official poverty line in Canada. Based on the time of the report in 2022, that would be $19,252 for a single adult or $27,227 for a family of two adults. 

"So anyone who wasn't making at least that amount would be topped up to that amount," Altass said.

"For those… earning income over and above that, it would be at a 50-per-cent reduction rate. So you would still have an incentive to earn income."

Altass said a basic income would let parents spend more time at home when their children are young, for example, or help people who are out of the workforce while they retrain.

It might also mean the difference between something as simple as accepting an invitation to a children's birthday party, or not.

"It's so important to put yourself in the shoes of someone who is experiencing poverty," she said.

"No one wants to be in the position to say, well, you can't go to the party because I can't buy a present for your friend. And unfortunately the truth is that those are the types of choices that people living in poverty have to make.

"When you think about the overall impact that has on someone's, you know, basic well-being — we have said for years we have a mental health crisis in this province. Poverty is having a huge impact on that."

How P.E.I.'s Targeted Basic Income Guarantee works: CBC Explains

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P.E.I. has been quietly operating a targeted basic income pilot program. Here's what you need to know.

Health care is one area where reducing poverty could lead to immediate benefits, Altass said, with people being more able to afford medications and nutritious food. And health care, if you haven't noticed, is also in a crisis.

So back to Spriet's question. Why hasn't a basic income guarantee happened?

In an email statement to CBC News last week, P.E.I.'s Department of Social Development said it is continuing to explore what a basic income guarantee would look like on P.E.I.

But it said this would not be a quick decision for the government, since the model proposes "substantial changes" to the way it provides financial support to Islanders in need. It would need to be administered through the tax system, and the top 20 per cent of earners would foot most of the cost through a tax increase.

Such a program would also need the federal government on board as a funding partner. 

Barb Ramsay, P.E.I.'s minister of social development, said in the email to CBC News that she reached out to her federal counterpart, Jenna Sudds, asking to form a joint Federal-Provincial Basic Income Working Group to explore the model in more detail. 

Ramsay said she was told in December that the request is still under consideration.

Altass, meanwhile, said if a basic income guarantee is important to you, it never hurts to let your MLA know.

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