Some suspected that this could be the basis of what will one day become a guaranteed basic income. Could this revolutionary social policy become a reality sooner than we think?
Today I want to explore why the federal government can push a Basic Income Payment that would be implemented by the CRA. In addition, I also want to look at an income alternative for investors.
Why the CRA might introduce a Basic Income in the future
At the end of the summer, Justin Trudeau and the ruling Liberals presented a plan to phase out CERB. Until then, millions of Canadians relied on CERB payments to survive during difficult economic times. Fortunately, the federal government has revealed that it will modernize Employment Insurance (EI) and introduce new benefits through the CRA.
Earlier this month, I discussed how Canadians might apply for the new Canadian Recovery Benefit (RCT), as well as the Canada Carer Recovery Benefit (CRCB) and the Canadian Benefit. disease recovery (CRSB). Like CERB, these benefits are also temporary. Meanwhile, EI is also capped at 26 weeks.
The COVID-19 pandemic has caused lasting damage to the Canadian service sector. This means that many lost jobs may never come back, at least in the capacity where they existed before. For this reason, Canada and the CRA may need to be more creative with a long-term advantage.
Basic Income: What Do Canadians Say?
A Basic Income is a notional public program that would provide periodic payment to all citizens. Like the CERB and the three new benefits, this would likely be administered by the CRA. However, Canada has avoided the “universal” aspect of basic income. If a basic income arrives, it will likely serve as a social service program with income and wealth eligibility requirements.
In June, the Angus Reid Institute unveiled a survey that showed strong general support for the idea of a basic income. Of the 1,500 Canadians surveyed, about 59% said they would support a Universal Basic Income (UBI) of $ 10,000, $ 20,000 or $ 30,000. Interestingly, support has declined slightly since the survey was conducted in 2016.
Strong public support and a Liberal minority reliant on NDP support could produce the perfect storm for a grassroots pitch in 2021.
Forget the CRA: Here’s an Income Alternative for Investors
As a basic income arrives, Canadian investors should be hungry to generate passive income. Fortunately, this can be accomplished with discipline and a little knowledge. Better yet, income generated by a Tax-Free Savings Account (TFSA) means you won’t see a portion of your payment held by the CRA.
Superior Plus is a promising security for those looking to generate income in their TFSA. This company is active in the distribution of energy and specialty chemicals activities in Canada, the United States and Chile. Its shares climbed 3.3% in 2020 to the close on October 22.
The last security had a favorable book value of 2.0. Superior Plus offers a monthly dividend of $ 0.06 per share. This represents a high yield of 5.8%.
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