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We Need a Basic Income in Nova Scotia

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We Need a Basic Income in Nova Scotia WE NEED A BASIC INCOME IN NOVA SCOTIA 2018 Shaw Lecture Income guarantees, freedom and global security Elizabeth Kay-Raining Bird & Pierre Stevens Basic Income Guarantee - Nova Scotia https://www.facebook.com/basicincomeNS/ Topics 1. BIG-NS and its activities 2. The Nova Scotia context 3. Why a Basic Income in Nova Scotia? 4. Funding a Basic Income In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty. BIG-NS THAT’S WHY BIG-NS WAS FORMED Since 2015 https://www.facebook.com/basicincomeNS/ Member, Basic Income Canada Network https://www.basicincomecanada.org/ BIG-NS Goals • Educate • Advocate • Feasibility study: how best to implement a Basic Income in Nova Scotia • Implement a Basic Income in Nova Scotia BUT, we do not want just ANY Basic Income Guarantee 6 BIG-NS Principles 1. Autonomy: BI goes to individuals not families • Allows individuals to make their own decisions. 2. Universality & Unconditionality: Everyone is deserving 3. Dignity: Treat all people with respect • No means testing or need to prove deservedness. 4. Universal responsibility: funded through a progressive taxation system • Provincial and federal governments mutually responsible • Redistribution of wealth BIG-NS, 2017 6 BIG-NS Principles 5. Economic integrity: financially viable • Accompanied by laws that prevent siphoning off the BI e.g., minimum wage, labor, housing… 6. Social integrity: BI is only one part of comprehensive and integrated supports • BI would replace some services e.g., income assistance • BI would not replace others e.g., disability supports • Still others should be added or augmented e.g., pharmacare, dental care, mental health and addiction services BIG-NS, 2017 BIG-NS Education e.g., Conferences April 2016 October 2017 Next conference April 27, 2019 Halifax public library Speakers include Evelyn Forget Catherine Mah BIG-NS: Advocacy • Community groups, stakeholders • Politicians • All parties • All levels of government—municipal, provincial, federal, indigenous Politicians Federal Provincial Municipal Indigenous Scott Brison Randy Delorey Mayor John Savage Native Council of Nova Andy Fillmore Labi Kousoulis City councillors: Scotia Guy Caron Joachim Stroink Waye mason Megan Leslie Brendan Macguire Shawn Cleary Maureen MacDonald Lisa Blackburn Lisa Roberts Sam Austin Susan LaBlanc Lindell Smith Gary Burrill Lorelei Nicoll Barbara Adams Tony Mancini Community Services staff: Richard Zurawski Nancy MacLellan Steve Craig Brandon Grant Russell Walker Rhonda Judge CPED BIG-NS Participated in the HRM/United Way Poverty Solutions Initiative • Immediate recommendation 1.5: “Work with all levels of government and community partners to complete a feasibility study looking in detail at how to implement a basic income.” (p. 32) • Systemic Change (long-term) recommendation 24.5: “Implement a basic income as a means to provide a living income for low-income and marginalized populations.” (p. 46) Building Poverty Solutions: Ideas for Action. A Community Report. HRM, 2018 WHY A BASIC INCOME? Because poverty rates in Nova Scotia are high, poverty is racialized, & vulnerable groups are over-represented Child & Family Poverty in Nova Scotia 21.6% overall CCPA: 2017 Report Card on Child & Family Poverty https://www.policyalternatives.ca/publications/reports/2017-report-card-child-and-family-poverty-nova-scotia Poverty is Racialized African Nova Scotians • 32.1% live in poverty Children • 39.6% live in poverty Youth, 18 – 24 • 50.2% live in poverty • (Duvet, 2017. NS Advocat) CCPA, MacDonald & Wilson, 2016, https://www.policyalternatives.ca/publications/reports/shameful-neglect People with a Disability are More Impoverished Stats Canada (2017) https://www150.statcan.gc.ca/n1/pub/75-006-x/2017001/article/54854-eng.htm WHY A BASIC INCOME? Because poverty damages people The “damages [poverty] caused to human beings' life chances, to communities and to social and economic productivity and progress are clear, and cannot be ignored. Poverty is the best predictor of early illness, early hospitalizations, longer hospital stays and earlier death. It is a reliable predictor of substance abuse, food insecurity, poor education outcomes, and for some, trouble with the law.” (p. 16). Segal, H. (2016). Discussion paper on Ontario pilot project. https://www.ontario.ca/page/finding-better-way-basic-income-pilot-project-ontario 50% of illnesses are caused by factors related to poverty: social determinants of health Canadian Medical Association https://www.cma.ca/En/Pages/health-equity.aspx WHY A BASIC INCOME? Because social assistance rates and minimum wages are not enough Provincial Social Assistance Rates NS Total Welfare 2016 LICO Poverty Gap Welfare Incomes Income as % of LICO Single $7,349 $17,485 -$10,136 42.0% employable person with $10,181 $17,485 -$7,304 58.2% disability single parent, $17,727 $21,281 -$3,554 83.3% one child couple, two $26,429 $33,060 -$6,631 79.9% children Note: LICO = Least generous measure of poverty (compared to LIM, Market Basket) Tweedle, Battle, & Torjman (2017), Caledon Institute of Social Policy; http://www.caledoninst.org/Publications/PDF/1086ENG%2Epdf What if you work full time at minimum wage--$11/hour? Family size Rural NS Halifax 1 Full-time Worker LICO-BT LICO-BT Income Before Taxes 1 $17,175 $21,487 $20,020 2 $21,382 $26,748 $20,020 4 $31,915 $39,926 $20,020 (*Stats Canada, 2018 https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2016002-eng.htm https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110024101&pickMembers%5B0%5D=2.2 ) WHY A BASIC INCOME? Because poverty is expensive Health Costs in Nova Scotia MacEwen & Saulnier, 2010, CCPA In a society as wealthy as ours it is a violation of human rights and common decency for any child or adult to live in poverty. BIG-NS WHY A BASIC INCOME? Because paid work is often insecure and increasingly precarious Work Is Increasingly Precarious Lewchuck et al., 2015 WHY A BASIC INCOME? Because providing more income reduces poverty and its negative effects Impact of Old Age Security Guaranteed Income Supplement (GIS): 1976 Spousal allowance: 1975, 1985 Allowance for survivor Stats Canada, 2012 http://www4.hrsdc.gc.ca/[email protected]?iid=23#M_4 After the introduction of Guaranteed Income Supplement, food insecurity rates dropped from 22% to 11% and health improved, despite aging. WHY A BASIC INCOME? Because it works: It’s not all about money but it’s always about money Research shows that a Basic Income • Decreases health care costs • Reduces high school drop-out rates • Increases engagement in post-secondary education • Increases work choices e.g., Forget, E. (2018); Forget, E. (2011); Forget, E. (2013) • Radically reduces poverty • Stimulates urban and rural economies: money stays in the community Inspirations from Last Night “Whatever you do, you must have a consciousness of victory” Four in the Moment “We need to discover ways of generating collective self-care” Angela Davis HOW TO FINANCE A BASIC INCOME IN NOVA SCOTIA Pierre Stevens or How eminently affordable a Basic Income is! $2.1 billion Nova Scotia Department of Community Services Basic Income Analysis, March 15, 2018 Nova Scotia Department of Community Services Basic Income Analysis, March 15, 2018 The cost to provide each household with a “Guaranteed Minimum Income” (GMI) @ 100% LICO ($16,730) Nova Scotia Department of Community Services Basic Income Analysis, March 15, 2018 The cost to provide each household with a GMI @ 100% LICO ($16,730) Program Costs = $2.1 billion Nova Scotia Department of Community Services Basic Income Analysis, March 15, 2018 The cost to provide each household with a GIM @ 100% LICO ($16,730) Program Costs = $2.1 billion Concluded that GMI options are either highly expensive and inadequate Nova Scotia Department of Community Services Basic Income Analysis, March 15, 2018 The cost to provide each household with a GIM @ 100% LICO ($16,730) Program Costs = $2.1 billion Concluded that GMI options are either inadequate or highly expensive Therefore Income Assistance Programs should continue Costs for a GMI @ 100% LICO = $2.1 billion Costs for a GMI @ 100% LICO = $2.1 billion Too Expensive! Costs for a GMI @ 100% LICO = $2.1 billion In-scope programs = $409 million In-Scope programs: • Income Assistance 238.5 • Poverty Tax Reduction tax Credit 3.7 • Nova Scotia Child Benefit 26.0 • Affordable living Tax Credit 66.0 • Low Income Tax Reduction 7.8 • Disability Tax Credit 23.0 • Heating Assistance Rebate Program 10.3 • Property Tax Rebate for seniors w/GIS 7.3 • Provincial Income Tax Refund Seniors on GIS 9.5 • Age Tax Credit 17.1 Department of Community Services assumptions: Only Department of Community Services budget considered No other NS government department budgets considered No consideration of the beneficial effects of a Basic Income on the Nova Scotia economy (e.g., health savings). No federal cooperation Top-Up Model: winners and losers! GMI @ 50% LICO would cost $828 million NS Department of Community Services says: the door is closed. Costing has been done and a GMI is too expensive! BIG-NS says: Time to do a real feasibility study with a more progressive model and a broader lens A More Progressive Model with a Broader Lens Not just a Top-Up Model: A Negative Income Tax Model Not only the Department of Community Services’ responsibility Not only a Nova Scotia responsibility Society at large will benefit! A Negative Income Tax Model • A Negative Income tax model has several features that can vary: • The Benefit Level: the maximum benefit payable to any individual • The Reduction Rate: the percentage decrease of Benefit Level due to higher earnings • The Break-Even Point: the income at which you receive no benefit. • Cost estimates for all of Canada vary from $50-80 billion • So, for Nova Scotia cost would be about $2 – 3 billion A Negative Income Tax Model • An example • A $20,000 basic payment at a 50% reduction rate (this means that for every additional dollar earned, the worker will receive 50% less in Negative Income Tax payments 1.
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