Fiscal Contract and the Canada Disability Benefit: Lessons from Income Tax Law
Osgoode Legal Studies Research Paper No. 4387582
Submitted for publication in Osgoode Hall Law Journal (2023)
22 Pages Posted: 13 Mar 2023
Date Written: March 2023
Abstract
This paper adopts a fiscal contract approach to examining the design of the Canada Disability Benefit and advocates using the CCB as a design model. It argues that a fiscal contract underlies the Income Tax Act which collects taxes as well as spends public money on poverty-reduction programs. In a tax state, the government’s spending is tied to taxing. The current fiscal contract reflects key Canadian values, such as equity and fairness, ability to pay, work, family and the rule of law. The CCB, which is implemented through the Income Tax Act, is a superior design model to the Guaranteed Income Supplement for designing the new benefit.
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