A child allowance costing $100 billion per year is estimated to reduce expenditures on children's and parents' healthcare costs by $3.5 billion per year.
Income guarantees effectively convert personal tax deductions into a universal credit.
A small basic income of $250 per month for adults and children that begins phasing out at $150,000 of household income - financed via eliminating certain tax deductions that disproportionately benefit the wealthy, plus a $42 per metric ton carbon tax - would reduce poverty by 40%, and reduce child poverty from 12.6% to 4.8%.
Income Guarantee Benefits and Financing
The Costs and Benefits of a Child Allowance
Policy Design Details