In Canada, 1 in 25 of our neighbours live under the Market Basket Measure (MBM) poverty line[1]. On average, those who fall into this category are under that line by about 33% [8]. Through corporate and high-earner tax loophole closures, government spending reallocation, with other funding measures in the tank (minor corporate & high earner tax hikes) if needed, we can fund a federal MBM top-up program targeting our most vulnerable.
In Canada every year, about $15,000,000,000 – $25,000,000,000 dollars a year is lost in federal corporate tax revenue [2][3]. Some reports indicate about $700,000,000,000 worth of wealth is stored in tax havens, more than the value of all machinery and equipment in Canada [3]. Through the closure of these tax loopholes, pricing-transfer audits, information exchange with other countries, and public beneficial-ownership registries to expose shell companies, we can hope to recover about 50% of that. The remaining %50 largely depends on international cooperation and harmonized OCED tax structuring. According to the Parliamentary Budget Officer and the Fraser Institute, by cutting ‘inefficient’ (which is subjective) government programs the feds can regain between $1,700,000,000 and $10,700,000,000 from federal spending [4][5]. Assuming ~$11,000,000,000 (half) recovery from tax havens, $10,000,000,000 from cutting most of the ‘inefficient’ or unnecessary federal governments programs, and another $9,000,000,000 from minor corporate and high-end (ultra rich) taxing, the feds have about $30,000,000,000 and change to fund a MBM top up program. This isn’t even including the money that could be redirected from existing EI or other social support programs.
The first Big Question is where the money is going to come from. That has been explained above. For the sake of simplicity, lets stick with the $30,000,000,000 in budget for this program. The second Big Question is what is MBM? Market Basket Measure is the most accurate form of reporting the costs of living in Canada, which the government actively uses in various other welfare programs. It is a calculation on how much a basket of goods and services cost in area X. Here’s where you can find the MBM for your area geographical area [6], and a breakdown of the math [7]. The national mean average, for one person in 2024, being around (mean & median) $29,626 and $26,584, with the highest (mean) being $62,892 for Iqaluit, Nunavut and $22,991 for population centers sizing between 30,000 and 99,999 in Quebec. With the same scale and location for families of four. On average, people below the poverty line fall under about %33 of MBM [8]. With around four million people under than line, and other statistics we have noted, we can finally do some math around this.
Big Question Three, how much is it going to cost? Mathematically:
Median MBM = $26,584 * 0.33 (average below-line measure) -> Median Poverty Income = ~$17,800.
With the difference being ~$8800 under the line per person each year.
Multiply that across 4 million people = 8,800 * 4,000,000 = ~$35,000,000,000 per year required to cover everyone under the line, on a pure MBM top-up basis.
With %86 of that funding covered through the means above, we have a real opportunity to target the most affected Canadians in our communities, and through parliamentary budget allocations we can fully cover every single one of our neighbours in need.
Now onto Big Question Four: How is it going to work? First of all, this program would only be topping up personal monthly incomes, tax free. There will be a %100 clawback, and every dollar you make is one less dollar of MGM welfare received, because you now don’t need it. This drastically reduces program cost, from potentially hundreds of billions of dollars to only a few (three) dozen. By implying the same monthly income reporting programs already in place to receive EI and other welfare programs in Canada, and using the mathematics around that (paying out a three month average the following month of submission, no filing = no payout, etc), reduces technical and administrative load by using systems already in place. By reducing stress and providing a path to financial security, we provide our people with the means of having a higher chance of success and prosperity, through providing finances while our youth are in school, providing relief for single-parent families, our elderly, and other disadvantaged people and groups.
National prosperity is highly linked to individual and family prosperity. If we can all send our kids to school and post-secondary institutions, if we can all pay our bills, if we can all ensure that every Canadian has a chance at living a prosperous life, we as a nation will prosper through gain of talent, business growth, GDP increase, and create a better more educated society and hopefully one that is smart enough (and has the tools to) to keep it’s government and those who wish to control it in check. The ability to lead a prosperous life that one chooses is the ultimate form of Life and Liberty.
References
1. Government of Canada SC. Canadian Income Survey, 2023 [Internet]. 2025 [cited 2025 Sept 20]. Available from: https://www150.statcan.gc.ca/n1/daily-quotidien/250501/dq250501b-eng.htm
2. [Internet]. 2021 [cited 2025 Sept 17]. Available from: https://www.canada.ca/content/dam/cra-arc/corp-info/aboutcra/tax-canada-conceptual-study/rv4-149-1-2022-ovrll-tx-gp-rpt-en.pdf
3. Xuereb Silas Xuereb S, Santaló FG-C. The rise and rise of tax havens [Internet]. 2025 [cited 2025 Sept 19]. Available from: https://www.taxfairness.ca/en/resources/reports/rise-and-rise-tax-havens
4. Fuss J, Munro G. Identifying potential savings from specific reductions in federal government spending | Fraser Institute [Internet]. 2025 [cited 2025 Sept 20]. Available from: https://www.fraserinstitute.org/studies/identifying-potential-savings-specific-reductions-federal-government-spending
5. Giswold S. Refocusing government spending in 2023-24 [Internet]. 2024 [cited 2025 Sept 20]. Available from: https://www.pbo-dpb.ca/en/publications/RP-2324-024-C–refocusing-government-spending-in-2023-24–recentrer-depenses-gouvernementales-2023-2024
6. Market basket measure thresholds by market basket measure region and family size, in current dollars [Internet]. Government of Canada, Statistics Canada; 2025 [cited 2025 Sept 16]. Available from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110010401
7. Heisz A, Gustajtis B. This paper announces the release of the Official Market Basket Measure (MBM) poverty thresholds for the 2021 Reference Year and Provisional Poverty Thresholds for the 2022 reference year. in addition, it describes the role the consumer prices indexes (CPIS) play in the annual updating of the MBM thresholds. it concludes by using the MBM thresholds’ growth rates to help provide a signal as to whether poverty rates could rise or fall from 2020. [Internet]. Government of Canada, Statistics Canada; 2023 [cited 2025 Sept 18]. Available from: https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2022008-eng.htm
8. Dimensions of poverty hub [Internet]. 2025 [cited 2025 Sept 19]. Available from: https://www.statcan.gc.ca/en/topics-start/poverty