Universal Basic Income — What Would Happen if We Implemented It?

For whatever reason, Jordan Peterson came across my feeds with an unexpected discussion about universal basic income. Essentially, he said he thought it was appalling which was somewhat of a surprise to me given that it is a classic liberal solution to many of the things I thought Peterson would be appalled at.

It makes me think that Peterson is appalled at the wrong thing.

Let’s begin at the beginning. Universal Basic Income (UBI) essentially uses the progressive tax system to ensure a bottom threshold for income for all citizens in a country. One way to think about this approach is to consider the “basic amount” that often appears in your tax forms. Imagine if, instead of just not paying taxes on that basic amount ($15,000 in Canada for 2024), you received a tax return that was equal to that basic amount minus your income. Above the basic amount, just like always, you pay progressive taxes in whatever tiers are decided by the government.

That’s roughly what basic income is.

Now, there are plenty of details to work out here. For example:

• Who qualifies for basic income? Do we give $15,000 to babies or do only to people old enough to file taxes?
• What if I do not work? What about pensions?
• Do I get the basic income if I am in university or college? How will that work?
• Will other programs like disability, GST rebates, family…