ared to UBI, poorer residents pay a larger portion of the program. And its less expensive. I recommend a $4000 GAI (as supplement to UBI and other progams) with 10% clawback from incomes of 0 to $40k or $10-50k.
ULI (Unconditional Loan Income) is somewhat similar to student loans with income based (royalty) repayment terms. There is no application/purpose criteria (other than perhaps citizenship), and additional loan amounts (the ULI limit) can be withdrawn each year. This is even less expensive than GAI for the same royalty/clawback rate as more of it is repaid individually over a lifetime. It can be partially funded by private and financial sector, and is eligible for central bank intervention/funding instead of fiscal funding. I recommend that ULI (with maximum 2% interest, and 20% royalty rate) be used to supplement minimum income alternatives such that expensive and wasteful programs (whose justifiable income support threshold is too high to achieve through UBI alone) can be eliminated: Student loans, affordable housing, R&D/Entrepreneurial tax credits and programs, farm and other corporate welfare assistance. Business ULI would be a personal loan whose proceeds are used for direct business investment. The personal responsibility avoids all scamming potential.
Citizens Income is a refundable tax credit for citizens only. Refundable tax credits in general apply to residents (who have tax applicabilty independently of citizenship). Nationalist appeal prefers a citizen only payment, and it is the best use of excess tax revenue collection. I recommend a variable citizen dividend supplement over and above core minimum poverty and welfare replacing refundable tax credits. It can also be used to repay personal ULI balances thus making that program even cheaper and private funding friendly, and without a citizenship criteria.
Carbon tax funding is singled out from other tax funding options because providing a refundable tax credit based on driving up the cost of gasoline to $6-$10/gallon and fossil fuel based electricity to 20c/kwh is an antipoverty program that directly incentivizes conservation, renewable electricity, and electric/alternative fuel driving. There is no need for research promotion, or special renewable credits. Simply, everyone interested in saving money/pocketing the carbon dividend just makes the individual choices necessary to save the planet and improve their individual economic outcome simultaneously.
Flat tax is singled out because refundable tax credits do not grant net cash to high income earners. Only low income earners. A flat tax with substantial refundable tax credits creates a more progressive tax system than we currently have: negative net tax rates for low income earners, 0 for middle, and positive tax rates that increase with highest incomes. It does so even when lowering the highest marginal rates. A flat tax doesn't prohibit traditional tax credits but they are discouraged.
Elimination of investment income tax credits along with equalization of corporate and flat personal tax rates, business expense deductibility for dividends, and cashflow based tax accounting. A substantial funding generator that lowers tax rates and increases refundable tax credits.
Surtax on investment profits is another substantial funding generator, that offsets better/fairer deductibility of investment losses.
Elimination of payroll taxes is justified by funding social safety nets from general taxes rather than personal insurance schemes. UBI is a safety net that applies to people with all income sources, and so should not be funded purely from lowest income employees, and businesses should not be penalized for hiring employees rather than machines or contractors..
Recommended mix of policies
Combined Canadian Federal and Provincial tax collections as a percent of income is only 15%. With the above tax changes and a 28% federal and "average" provincial tax rate (before consdiering investment surtaxes that lower this rate), $8k UBI/refundable tax credits and $4k additional GAI is funded for 21M Canadians, and without