when the turnip and the Tetris

I have been listening to CPAC lately while I work, the Budget 2025 is being discussed, with the CPC focusing on how it does little to immediately assist people in Canada, but with the LPC touting all of the things it does do. The federal government is in a deficit spending mood and there is some funding towards housing that was part of the impetus for what I worked out with the Copilot AI. Another impetus is the idea of using Canadian steel and lumber and CLT in construction. I asked the AI about income inequality and how to address it, and we came up with the plan below.

Policy Blueprint: Reducing Income Inequality in Canada (2026–2030)

Executive Summary

Canada faces rising income inequality driven by stagnant wages, high living costs, and housing shortages. This blueprint proposes a five-year integrated strategy combining tax reform, cost-of-living reductions, and housing expansion to create a fairer, more inclusive economy.

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1. Tax Reform: A Fairer System

Goal: Increase disposable income for low- and middle-income Canadians while maintaining revenue neutrality.

• Inverse-Proportion Basic Personal Amount (BPA)
  • Start at current BPA (~$15,000) and gradually increase for low-income earners while phasing out for high-income earners over 5 years.
  • Formula:
    $$BPA = \max(0, Base \times (1 - \frac{\text{Taxable Income}}{\text{Phase-Out Threshold}}))$$
    Example: Base = $20,000; Phase-Out = $150,000.
• Small Boosts to CCB and GIS
  • Target families and seniors for immediate relief.
• New Worker Benefit
  • Refundable credit for low-income adults without children or retirement benefits.

Impact:

• Progressive tax system without sudden shocks.
• Immediate support for vulnerable groups.

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2. Lowering Cost of Living

Goal: Reduce essential expenses for households through increased market competition.

• Groceries
  • Lower barriers for foreign entrants and independent grocers.
  • Enforce anti-collusion laws.
• Telecom & Internet
  • Mandate wholesale access for smaller providers.
  • Encourage MVNOs and regional ISPs.
• Banking
  • Promote low-cost and zero-fee digital banking options.

Impact:

• Lower grocery and telecom bills.
• Increased consumer choice.

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3. Housing: Building Stability

Goal: Eliminate chronic homelessness and expand affordable housing.

• Pipeline Construction Model
  • Specialized teams rotate through many sites across major cities.
  • Modular and mass timber builds for speed (up to 12 stories downtown, 4–6 stories in suburbs).
• Three-Tier Housing Strategy
  • Transition Housing: Rooming-house style with embedded social workers.
  • Social Housing: Rent geared to income (≤30%).
  • Affordable Housing: ~70% of market rent.
• Funding Model
  • Federal: CAPEX for construction.
  • Provincial: Social services and staffing.
  • Municipal: Building management; pooled rents cover maintenance.

Impact Timeline:

• Year 1: First transition units + hotel conversions online.
• Year 3: Majority of transition housing complete; social housing scaling.
• Year 5: Chronic homelessness eliminated; ongoing affordable housing builds.

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Governance & Accountability

• Build Canada Homes Agency: Centralized expertise for modular builds.
• Annual Review: Adjust BPA formula and housing targets based on progress.
• Public Dashboard: Transparency on milestones and spending.

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Expected Outcomes by 2030

• Income inequality significantly reduced.
• Cost of living stabilized.
• Housing security for vulnerable Canadians.
• Stronger, more inclusive communities.

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I did the anlysis for the housing part in Montreal, with about 3000 people who are homeless, it would take about 25 buildings worth of transition housing with the soonest available within a year and with all homeless put into transition housing, and off the street by the end of five years. Any homeless who are able to work once they have an address, they can move up to social housing within the same building, freeing up another transition space. Social workers can be embedded in the building to help all of the people that are in the transition and social housing units.