Basic income would ease poverty but likely require higher taxes, spending cuts: Study

HALIFAX — A new study says a basic income would help alleviate poverty in Canada but could also put the fiscal sustainability and labour supply of some provinces at risk. 

The report by the Atlantic Provinces Economic Council, a Halifax-based economic think tank, says a basic income would guarantee everyone enough money to meet essential needs. 

The study found a basic income would reduce inequality, establish a sense of financial security and encourage savings. 

But the report says running a basic income program would be more complex than it seems. 

It says funding the program would likely require raising taxes or cutting government spending.

The report says a basic income could also create a disincentive to work, worsen labour shortages, and add to inflation pressures due to additional spending. 

This report by The Canadian Press was first published June 16, 2022.

The Canadian Press