icity 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 program elimination (or change to senior benefit programs). ULI instead of GAI, would allow the GAI/ULI amount to increase to at least $8k at same cost. Excess social revenue resulting from direct economic growth and earnings stimulated from refundable tax credit programs, would be paid as a social dividend that repays any ULI balance. Savings from the elimination of EI, welfare, disability, cpp, business and student welfare can fund the social dividend and $5k extra education and business restricted ULI that could include coverage for text books, computers, and tools.
While it scares many people, a carbon tax sufficient to fund a $4000 dividend should be used to fund primarily non-citizen restricted refundable tax credits. Though lower amount may be substituted. EITC and child benefits have not been touched, though IMO, they should be lowered in exchange for higher general refundable tax credit.
Smaller plan options
While my plan achieves well in excess of $21k annual refundable tax credits and unconditionally-accepted loan access sufficient to eliminate poverty in all family sizes and budget discipline circumstances, refundable tax credits of any size are beneficial with the critical mass improvement point beginning at the level that eliminates the conditional welfare system. The Manitoba GAI program at just $6300/yr is an excellent example of this.
Modifying federal tax credits at the provincial and municipal level
Refundable tax credits can be implemented at the provincial or municipal level by modifying/removing tax credits applicable at "higher" levels. There is no obligation to follow federal or provincial tax policy, and leadership on refundable tax credits is required that likely necessitates correcting perversions maintained at other taxation levels.
No pointless delay pilot-study/research tactics
If you lean towards cautious, patient, and deliberate approach to UBI/refundable tax credits, then support introducing fewer of them initially, and then increase them as you become more convinced.
Opposition 