Connect with us

COVID-19

Keep It Simple S…ubsidy

Published

9 minute read

You want my idea for the wage subsidy… well here it is.

WARNING: It is so simple to implement, there is no way a government would do it.

(Originally posted on LinkedIn (no joke) April 1, 2020)

 

 

People have said “you are quick to pick apart the wage subsidy, so what is your solution?”

So… you asked for it… here it is:

I’ve said it from the very beginning that it should resemble EI support. All they should be doing is simple.

(No this is not an April Fool’s joke… but I am hoping the Press Conference on April 1, 2020 by the Minister of Finance was)

I was fine with EI amounts… but since we have the Canadian Emergency Response Benefit (CERB)… let’s use that amount to keep it more simple.

The amount is this:

(just like the CERB). $2,000 per worker per month, taxable, and no withholdings up front

Put a ‘clawback’ amount on those that are getting it like the clawback on Old Age Security or regular EI benefits for when they file income tax next year.

The 3-prong approach to the subsidy

 

Prong 1 – CERB from Service Canada

Everyone should get it. Yes, everyone.

However, anyone that makes more than the EI maximum in 2020 must pay back 30 cents of the CERB on every dollar over the $54,200 EI maximum threshold when they file their 2020 taxes.

So when you file your personal 2020 income tax, if you ended up making more than $80,667 in income, you will have had to pay back the full $8,000 of CERB received on a T4E.

This results in helping everyone today, help jump start the economy when we need to and have those that get back on their feet quicker, paying some or all of it back.

If you received both the CERB from Service Canada, and the CERB through your employer, you have to pay back the amount greater than the $8,000 received, and then any other amount based on the formula above.

This will prevent or reduce the double dip.

 

Prong 2 – CERB through the Small Business employer

The small business (less than $15M in assets of all associated corporations) employer would also get the CERB on a per-employee basis. They already have to fill out the number of employees when they file their remittance forms, so what’s the difference?

This $2,000 flows through to subsidize the wages, and must be paid to the employees. You create a different box number to track it on the T4 slips next year for audit purposes and to make sure the employee got the money.

I know this isn’t 75%, but the 75% was a capped amount anyways. That’s why I said keep it simple.

In order to incentivize the small business employer so they don’t lay them off, treat it as a flow through, and non-taxable to the employer.

So if there are five employees at the small business, the employer will get $10,000 of CERB to flow through to the employees.

The employee’s wages will be subsidized by the $2,000 amount, and they will put the $2,000 in a different box on each T4 slip for tracking purposes.

In order to incentivize the employer to act as the flow-through for Service Canada, this $2,000 will not be subject to EI or CPP by the employer and will not be included in the taxable income of the employer.

This allows the employer to claim the full wage deduction, have subsidized payroll costs, and save the income tax amount by deducting the full payroll.

By not counting it as income, this tax and remittance savings can be viewed liked an “admin fee” for acting on Service Canada’s behalf.

On $10,000 (5 employees) this would save up to $252 in Employer EI, $525 in Employer CPP, and $900 in federal income tax.

Cost to government for employer being the administrator instead of Service Canada: $1,167.

Incentive for employer to NOT lay off the staff, $10,000 in wage costs… and $1,167 in tax savings.

 

Prong 3 – CERB through Large Corporations

If the employer is getting the CERB on a per-employee basis and they are a large (greater than $15M in assets) corporation or associated group, allow them to not pay employer EI or CPP on the CERB.

100 employees = $200,000 = up to $5,040 in reduced EI, and $10,500 in reduced CPP remittances as the incentive.

So the employer gets $2,000 per employee as a subsidy to cover wage costs, and does not have to do payroll withholdings on the amount, saving them a total of $200,000 + 5,040 + 10,500 = $215,540.

Or put another way, they can save $15,540 by not laying them off.

If that’s not enough incentive, then perhaps look at it being only 50% taxable, which in the example above, would reduce Federal income tax by $15,000 (using 15% general rate x 50% x $200,000)

 

 

Audit Tracing

By simplifying the process, there is less ability for abuse.

Service Canada will issue everyone a T4E with the CERB they personally received from them (no application necessary).

T4 box numbers can be reconciled by CRA on slip filing to amounts of CERB received by the employer through the PIER system.

Those same boxes can be reconciled to specific individuals on tax filings to see if there were any that should repay.

Amounts greater than $8,000 received by anyone will need to be repaid.

Those with income over the EI Maximum amount, will have to repay some or all of the CERB back when they file.

If you don’t agree… well… the specific repayment formula can be figured out later… we have a year for that. We need the money in the public’s hands now though.

 

In Conclusion

These incentives and recapture mechanisms will reduce the likelihood of layoffs in low-margin industries like hospitality since $2,000 a month goes a long way to covering those wages; it will “Flatten the EI Curve” (trademark pending – not really… but I like saying it)

It would get everyone back working quicker after this is done by maintaining the connection to employers, and get the economy kick-started with cash injections at the front of this thing, rather than the end.

In the end… you have employers flowing the $2,000 through to the employee on Service Canada’s behalf as a no-withholding amount and a nominal cost to the employer to administer it, rather than Service Canada processing hundreds of thousands (if not millions) of individual applications.

If they are a small business, they actually get a tax savings by being the administrator and helping Service Canada in the process.

If they are a large business, they can have a good chunk of payroll costs reduced by not having to pay EI and CPP on the amount, and perhaps tax savings.

In the end, every worker gets $8,000 over 4 months just to buy everyone time and we have Flattened the EI Curve.™

Biography of Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr can be found here.

#RedDeerStrong – If you’re struggling and you need to consolidate debt through a mortgage refinance, Kristen is here for you.

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

Follow Author

Alberta

Red Deer Doctor critical of Alberta’s COVID response to submit report to Danielle Smith this May

Published on

From LifeSiteNews

By Anthony Murdoch

Leading the task force is Dr. Gary Davidson, who was skeptical of mandates at the time.

Alberta Premier Danielle Smith will soon be receiving a little-known report she commissioned which tasked an Alberta doctor who was critical of the previous administration’s handling of COVID to look into how accurate the province’s COVID data collection was, as well as the previous administration’s decision-making process and effectiveness. 

As noted in a recent Globe and Mail report, records it obtained show that just less than one month after becoming Premier of Alberta in November of 2022, Smith tasked then-health minister Jason Copping to create the COVID data task force. 

Documents show that the Alberta government under Smith gave the new task force, led by Dr. Gary Davidson – who used to work as an emergency doctor in Red Deer, Alberta – a sweeping mandate to look at whether the “right data” was obtained during COVID as well as to assess the “integrity, validity, reliability and quality of the data/information used to inform pandemic decisions” by members of Alberta Health Services (AHS).  

As reported by LifeSiteNews in 2021, Davidson said during the height of COVID that the hospital capacity crisis in his province was “created,” was not a new phenomenon, and had nothing to do with COVID.

“We have a crisis, and we have a crisis because we have no staff, because our staff quit, because they’re burned out, they’re not burnt out from COVID,” Davidson said at the time. 

Davidson also claimed that the previous United Conservative Party government under former Premier Jason Kenney had been manipulating COVID statistics.  

In comments sent to the media, Smith said that in her view it was a good idea to have a “contrarian perspective” with Davidson looking at “everything that happened with some fresh eyes.” 

“I needed somebody who was going to look at everything that happened with some fresh eyes and maybe with a little bit of a contrarian perspective because we’ve only ever been given one perspective,” she told reporters Tuesday. 

“I left it to [Davidson] to assemble the panel with the guidance that I would like to have a broad range of perspectives.” 

After assuming her role as premier, Smith promptly fired the province’s top doctor, Deena Hinshaw, and the entire AHS board of directors, all of whom oversaw the implementation of COVID mandates. 

Under Kenney, thousands of nurses, doctors, and other healthcare and government workers lost their jobs for choosing to not get the jabs, leading Smith to say – only minutes after being sworn in – that over the past year the “unvaccinated” were the “most discriminated against” group of people in her lifetime. 

As for AHS, it still is promoting the COVID shots, for babies as young as six months old, as recently reported by LifeSiteNews.  

Task force made up of doctors both for and against COVID mandates  

In addition to COVID skeptic Dr. Gary Davidson, the rather secretive COVID task force includes other health professionals who were critical of COVID mandates and health restrictions, including vaccine mandates.  

The task force was given about $2 million to conduct its review, according to The Globe and Mail, and is completely separate from another task force headed by former Canadian MP Preston Manning, who led the Reform Party for years before it merged with another party to form the modern-day Conservative Party of Canada. 

Manning’s task force, known as the Public Health Emergencies Governance Review Panel (PHEGRP), released its findings last year. It recommend that many pro-freedom policies be implemented, such as strengthening personal medical freedoms via legislation so that one does not lose their job for refusing a vaccine, as well as concluding that Albertans’ rights were indeed infringed upon. 

The Smith government task force is run through the Health Quality Council of Alberta (HQCA) which is a provincial agency involved in healthcare research.  

Last March, Davidson was given a project description and terms of reference and was told to have a final report delivered to Alberta’s Health Minister by December of 2023. 

As of now, the task force’s final report won’t be available until May, as per Andrea Smith, press secretary to Health Minister Adriana LaGrange, who noted that the goal of the task force is to look at Alberta’s COVID response compared to other provinces.  

According to the Globe and Mail report, another person working on the task force is anesthetist Blaine Achen, who was part of a group of doctors that legally challenged AHS’s now-rescinded mandatory COVID jab policy for workers. 

Some doctors on the task force, whom the Globe and Mail noted held “more conventional views regarding the pandemic,” left it only after a few meetings. 

In a seeming attempt to prevent another draconian crackdown on civil liberties, the UCP government under Smith has already taken concrete action.

The Smith government late last year passed a new law, Bill 6, or the Public Health Amendment Act, that holds politicians accountable in times of a health crisis by putting sole decision-making on them for health matters instead of unelected medical officers. 

Continue Reading

COVID-19

Pfizer reportedly withheld presence of cancer-linked DNA in COVID jabs from FDA, Health Canada

Published on

From LifeSiteNews

By Clare Marie Merkowsky

According to information released by the Epoch Times, Pfizer purposefully failed to advise drug regulators, including Health Canada, the U.S. FDA and the European Medicines Agency, that the cancer-linked SV40 DNA enhancer was present in their experimental COVID shot.

Pharmaceutical giant Pfizer reportedly “chose not to” inform Health Canada, the U.S. Food and Drug Administration and other regulatory agencies that the cancer-linked Polyomavirus Simian Virus 40 (SV40) DNA sequence was in their widely distributed COVID-19 vaccine.  

According to information released April 23 by the Epoch Times, Pfizer purposefully failed to advise drug regulators, including Health Canada, the U.S. Food and Drugs Administration, and the European Medicines Agency, that SV40 was present in their experimental COVID shot.   

“I understand that there have been internal discussions at CBER [Center for Biologics Evaluation and Research] regarding the presents [sic] of an SV40 enhancer/promoter sequence, noting that its presence is unrelated to the purpose of the Pfizer’s plasmid as a transcription template for their mRNA COVID-19 vaccine,” Dr. Dean Smith, a senior scientific evaluator in Health Canada’s Vaccine Quality Division, wrote in an email to a colleague at the FDA about SV40. 

The August email was obtained by an access to information request by the Epoch Times.  

“Pfizer has communicated to us recently, that they apparently chose not to mention this information to EMA, FDA or HC at the time of their initial or subsequent submissions,” he added. 

Smith noted that Kevin McKernan, a microbiologist and former researcher and team leader for the MIT Human Genome project, and Dr. Phillip J. Buckhaults, who is a professor of cancer genomics as well as the director of the Cancer Genetics Lab at the University of South Carolina, had raised in a public manner earlier this year how SV40 was present in the jabs. 

While Health Canada originally told Canadians it was unaware of the SV40 enhancer’s presence, the agency has since confirmed the presence of the monkey-linked DNA sequence known to cause cancer when it was used in old polio vaccines. 

SV40 is used to enhance gene transcription when the shots are made. It has been linked to the spread of turbo cancers in those who have been exposed to the virus via contaminated injections.   

According to a 2002 study published in the Lancet, there is evidence that links the older polio vaccines, which were filed with SV40 contaminants, to certain forms of cancer.  

The authors of the 2002 study claim that the SV40-contaminated polio vaccine may have caused up to half of the 55,000 cases of non-Hodgkin’s lymphoma diagnosed each year.  

SV40, according to the late vaccine developer Dr. Maurice Hilleman, was put in the polio vaccine and then put into wide circulation by Big Pharma company Merck inadvertently. 

Unfortunately, this is not the first evidence that Pfizer hid the presence of SV40 from drug regulators.  

According to Dr. Janci Lindsay, who works as the director of toxicology and molecular biology for Toxicology Support Services, Pfizer did not disclose the presence of SV40 “promoters” to both Health Canada and the U.S. Food and Drug Administration, as well as the European Medicines Agency.  

She said, as reported in The Epoch Times, that the drug company “hid them.” 

“So it’s not just the fact that they’re there, it’s the fact that they were purposefully hidden from the regulators,” she noted. 

The news of Pfizer’s purposeful withholding of information comes as adverse effects from the first round of COVID shots have resulted in a growing number of Canadians who have filed for financial compensation over alleged injuries from the jabs, via Canada’s Vaccine Injury Program (VISP). 

Thus far, some VISP has already paid over $6 million to those injured by COVID injections, with some 2,000 claims remaining to be settled. 

Additionally, a recent study done by researchers with Canada-based Correlation Research in the Public Interest showed that 17 countries have found a “definite causal link” between peaks in all-cause mortality and the fast rollouts of the COVID shots as well as boosters. 

Continue Reading

Trending

X