ABSTRACT
This chapter provides cost estimates of a Basic Income (BI) and a Guaranteed Income (GI) plan for Canada. It also provides various poverty measures employed in Canada. Unlike the United States, Canada does not have an official poverty line, although Statistics Canada regularly publishes a set of measures called the Low Income Cut Offs (LICO). The chapter explores how BI and GI are related to the objective of eliminating poverty. It examines the relationship between BI and GI, demonstrating that GI is a form of BI with an added income test and equivalent to a refundable tax credit. The chapter presents cost estimates for various BI and GI plans. Refundable Tax Credit and GI plans can be characterized by two elements—unconditional basic support or a refundable credit; and some benefit reduction tax rate by which the cash transfer is reduced for each dollar of taxable income. The chapter concludes with some remarks on administrative design and delivery issues.
