Implementing a Basic Income Guarantee through the Personal Income Tax System: Benefits, Barriers, and Bothers

The latest report from Northern Policy Institute’s B.I.G. Series argues there are a number of advantages and challenges to using the Personal Income Tax System (PIT) to deliver a basic income guarantee in Ontario. According to Tedds, using the tax system could simplify a very complex, often overlapping process for recipients of social benefits, while at the same time reduce administrative costs. Additionally, the tax system already has the tools to deliver a B.I.G. — namely, through refundable tax credits. The report suggests income accuracy and Canada’s harmonized tax system could prove to be the most significant hurdles in delivering basic income in this way. This paper is the fourth of a series that explores the various topics presented at NPI’s Basic Income Guarantee conference in October 2016.