"Academics who study basic income said the pilot gives a chance to see how the idea plays in a changed economy."

Ontario to test out UBI

#Money

Tue, Apr 25th, 2017 11:00 by capnasty NEWS

Ontario Premier Kathleen Wynne announced a pilot program to study UBI's effectiveness by providing 4,000 randomly picked low-incomes households with about $17,000 a year, "whether they are working or not." The 3-year program, which will cost $150 millions, will be based in based in Hamilton, Lindsay and Thunder Bay, areas affected by economic downturn. With the next 30 years being labelled as painful, the results of this study may help tackle some of the issues of our generation.

People are especially concerned for those who don't start out wealthy, she said.

"Many people are concerned about what the world is promising for their kids," she said. "It's a world of global competition, reduced benefits, more and more part-time employment."

The premier said the three-year project will start with people making "just under $17,000 a year, but even that amount may make a real difference to someone who is striving to reach for a better life.

The Globe and Mail explains how it all works:

It's not just people receiving social assistance who will be eligible for the basic income. The government is also targeting those who are underemployed, earning minimum wage and/or living in poverty.

However, if an individual is receiving income from a job, the government will deduct half of his or her earned income.

For example, if a single person earned $10,000 from a job, the government would provide $11,989 in basic income – the maximum $16,989 minus $5,000 from his or her wages. That recipient would then have a total income of $21,989 for the year.

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