Oct 18, 2012

Canada is a citizen-ownership democracy. Almost.

Canada has Basic Income for children, almost unconditionally.

A child in Canada can get a basic income of more than $82,500 over 18 years. (see calculation below)

Some proposers for a basic capital, e.g. Professor Bruce Ackerman  and Professor Ann Alsott from Yale Law School in their book The Stakeholder Society,  ask for a lump sum payment of $80,000 when a citizen becomes an adult.

"Our basic proposal is straightforward. As young Americans rise to maturity, they should claim a stake of $80,000 as part of their birthright as citizens." (The Stakeholder Society. Professor Bruce Ackerman, Professor Anne Alstott. Yale University Press)

Using this standard, Canada already provides a basic capital, spread over 18 years. To be considered a full citizen-ownership democracy, there is a need to equate citizen-income to money derived from the common wealth of the country, and the citizen income should be unconditional.


Calculation

Child Benefits

(The following is extracted from Canada government website)
http://www.servicecanada.gc.ca/eng/goc/universal_child_care.shtml

Income 1: The Universal Child Care Benefit (UCCB) program issues a taxable $100 monthly payment to families for each child under the age of six to help cover the cost of child.

Income 2: The Canada Child Tax Benefit (CCTB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18. Basic benefit: The basic benefit is $1,405 ($117.08 a month) for each child under age 18 (the basic benefit is different for residents of Alberta, see the note below).There is a supplement of $98 ($8.16 a month) for your third and each additional child.
We subtract a benefit reduction from this amount if your family net income is more than $42,707. For a one-child family, the reduction is 2% of the amount of your family net income that is more than $42,707. For families with two or more children, the reduction is 4%.

Income 3: National Child Benefit Supplement (NCBS):

http://www.cra-arc.gc.ca/bnfts/cctb/fq_pymnts-eng.html#q7

One-child family: $2,177 a year ($181.41 a month).
Two-child family: $1,926 a year ($160.50 a month).
Three-or-more-child family: $1,832 a year ($152.66 a month).
We subtract a benefit reduction from these amounts if your family net income is more than$24,683. For a one-child family, the reduction is 12.2% of the amount of your family net income that is more than $24,683. For a two-child family, the reduction is 23% of the amount of your family net income that is more than $24,683. For a three-or-more-child family, the reduction is 33.3% of the amount of your family net income that is more than $24,683.

http://www.cra-arc.gc.ca/E/pub/tg/t4114/t4114-12e.pdf

Sample Calculation: (assuming family net income is less than $24,683)
Basic monthly amount $107.66
National Child Benefit Supplement monthly amount $181.41
* Alberta Family Employment Tax Credit monthly amount $59.58

UCCB $100 (up to age 6)
Total monthly amount: 448.65

Summary
A child will get a basic income of $448.65 per month up to age 6, and $348.65 per month up to age 18.
In total, a child will get a basic income of more than $82,500 over 18 years.


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