On April 7, 2021 PBO published a report regarding a proposed Guaranteed Basic Income (GBI).
Parliamentarians requested details regarding the distributional impact on Canadians with a disability – specifically those who are eligible for the disability tax credit.
Table 1 shows that of the roughly 1 million Canadians eligible for the disability tax credit, just over half (544,000) were in the 18 to 64 age category and thus eligible for GBI. Of those eligible, the majority (488,000 or 89.8%) are estimated to see an 11.2% increase in their disposable income, which is equivalent to about $5,000. On the other hand, roughly 56,000 Canadians (10.2%) with a disability would be worse off, with an average decline in their disposable income of 3.6% or some $2,500.
Overall, PBO estimates the total loss (gain) among Canadians with disabilities is $139 million ($2.5 billion) in 2022.
Table 1: Net gainers and net losers from the GBI among disabled people, by gender
|
Sex |
Men |
Women |
Both |
|
Unit Count (000) |
521 |
522 |
1,043 |
|
Net beneficiaries (000) |
258 |
230 |
488 |
|
Beneficiaries’ percentage share of disabled population |
24.7% |
22.1% |
46.8% |
|
Average disposable income of winners, pre-GBI scenario |
$51,022 |
$38,309 |
$45,028 |
|
Change in disposable income of net beneficiaries ($) |
$4,998 |
$5,102 |
$5,047 |
|
Change in disposable income of net beneficiaries (%) |
9.8% |
13.3% |
11.2% |
|
Total change in the disposable income of net beneficiaries (M) |
1,290 |
1,175 |
2,465 |
|
Individuals with income losses (000) |
25 |
31 |
56 |
|
Percentage share of individuals with income losses |
2.4% |
2.9% |
5.3% |
|
Average disposable income of losers, pre-GBI scenario |
$92,047 |
$52,541 |
$70,240 |
|
Change in disposable income of individuals with income losses ($) |
($1,103) |
($3,629) |
($2,497) |
|
Change in disposable income of individuals with income losses (%) |
-1.2% |
-6.9% |
-3.6% |
|
Total change in the disposable income of individuals with income losses (M) |
-27 |
-111 |
-139 |
Source: Source: PBO calculations using 2022 SPSD/M.