A Basic Income for Nunavut: Addressing Poverty in Canada's North.

This article examines the economic feasibility and potential poverty reduction impact of implementing a guaranteed basic income (BI) in Nunavut, a Canadian territory with a predominantly Inuit population and high poverty rates. Using individual-level tax filing data from 2019, the authors simulate various basic income designs—both universal and income-tested—that could be delivered through the existing tax system and potentially replace Nunavut’s current income assistance (IA) program. They find that Nunavut could afford a modest income-tested basic income by reallocating funds from eliminating IA and territorial tax credits, but a more generous BI would require additional federal funding due to Nunavut’s limited tax base. While a basic income could reduce low-income rates and alleviate food insecurity, it would not fully address housing needs, the high costs of traditional harvesting activities, or the broader social and cultural dimensions of poverty as understood through Inuit principles, including community obligations and well-being. The article also highlights challenges such as the annual tax-based delivery mechanism, low tax filing rates, and potential tensions between unconditional BI payments and Inuit values emphasizing collective responsibility.