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Budget 2019 – Don’t spend your new Canada Training Credit just yet

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On March 19, 2019, the federal government tabled its election-year budget. One of the new provisions is a refundable credit called the Canada Training Credit. However, the $250 credit won’t even be available until you file your 2020 income tax return in April of 2021.

Further, if you are born in 1995 or later, you won’t qualify yet. If you were born in 1954 or earlier, you would never be eligible.

In addition, the maximum benefit you can receive is $5,000 in a lifetime (which will take 20 years to get at $250 a year) and the benefit can only be used to a maximum of 50% of eligible tuition costs.

So let’s consider the following scenario:

It is 2019 – you are 25 years of age making $27,000 a year and file your taxes every year.

You decide to take advantage of this credit and enroll in your first semester of schooling in the fall of 2023.
According to Statistics Canada, the average Canadian undergraduate pays $3,419 per semester.

So, you take time off work to go to school full-time in the fall, thus reducing your income by 1/3 in the year to $18,000.

Under the current 2019 rules, you would only have $39 in federal income tax. This amount is low because the tuition credits reduce your taxes.

By 2023, you have built up a “pool” of $250 per year after you turned 26, and believe you have a $1,000 pool available for that year.

When you file your 2023 return the $1,000 is triggered as a refundable tax credit. But you won’t be getting $961 back ($1,000 – 39).

Here’s the catch:

The $1,000 pool reduces the amount you can claim for tuition credits as well, which changes the tax owing to $189 Federal income tax. Meaning the $1,000 pool that you waited for is reduced by 15% by the time you pay it out.

Cash in jeans: $811.

But what if the course you decided to go into begins in January of 2023? You go for the January-April semester, work from May-August, and attend school September-December.

Using the same $27,000 – your income is now reduced by 2/3 while attending full time. Your income is only $9,000 as a result of the May-August period.

Your tuition (possibly paid through student loans) is $6,838 for the year.

Your tax is now zero because even before tuition credits you are below the Basic Personal Amount in your earnings.

Does this mean you get the full $1,000?

No.

Because your income is less than $10,000 in 2023, you don’t get the $250 for that year. As such, you only get $750, and your tuition credits available for carryforward are reduced by $750 as well, thus having a future negative impact on tax of $112.50.

Net result: $637.50 cash in jeans

What if you are a parent that decides to stay home with the kids until they are in school full time and go back to school in 2023?
Unfortunately, because you did not make more than $10,000 a year in any of the years, you get zero.

What if you were laid off, collecting regular EI benefits, and decide to go back to school?
Regular EI Benefits don’t qualify for the $10,000 income calculation. As a result, unless you had special EI benefits like parental leave or earned income from another source greater than $10,000, you don’t qualify.

What if you were self-employed through a small business corporation and paid yourself dividends instead of wages and then decided to upgrade your training?
Your dividend income does not qualify, and so you are not eligible for amounts to be added to the pool.

So assuming you qualify, and you wait the four years to build up a pool of $1,000 (remember that the $1,000 is only a net $850 because of the reduction in tuition credits). That same Statistics Canada report says that tuition is increasing at 3.3% per year. That means by you waiting four years so you can get the Net $850 means your annual tuition has likely increased from $6,838 to $7,786 ($948).

You waited four years, and the tax amount you receive won’t even cover the inflationary price increase on tuition.

In Conclusion

  • Those that do qualify won’t see anything until April 2021; the actual net amount of what they will see is only $212.50; and their annual tuition will likely have increased by $225.65.
  • Students under the age of 25 will see nothing;
  • People over the age of 25 that don’t have more than $10,000 of income will see nothing;
  • Seniors will see nothing;
  • Parents looking to re-enter the workforce will see nothing; and
  • People who have been laid off and have less than $10,000 of non-EI income will see nothing.

Seems like a lot of complex legislation for nothing.


Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

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

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Bruce Dowbiggin

Come For The Graduate Studies, Stay For The Revolution

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Just In: The Trudeau government intervenes at last minute to save a convicted climate agitator from deportation. The Pakistani co-founder of Save Old Growth— who first came to Canada in 2019 on a study permit— has been arrested at least 10 times and convicted of mischief. Zain Haq was due to be deported to Pakistan on Monday.

Despite a judge’s ruling denying his last hope of staying , Haq got a call from his Liberal MP’s office saying he gets to stay in B.C. after all. Good, because we’d hate for him to feel  oppressed by the country in which he’s squatting. The news thrilled the nepo babies who have B.C. by the throat.

So Haq goes from unrepentant jerk to Christ crucified. Naturally. Victim politics have become the animating impulse in Western society. Attaching yourself to a forlorn cause like Haq is grounds for beatification  And make no mistake, there are legions in identical little tents on campus quads who are cheering a non-Canadian defying The Man.

To generations brought up on the travails of feminist oppression, climate degradation, indigenous grievance and gender dysphoria there is nothing so sacred as a victim is all his purity, crushed by the Great White Satan of western culture.  Haq is just the latest in a police lineup of wobbly performance artists taking a rhapsodic bow before the Liberal/ NDP/Green clique. While thumbing his nose at Canadians.

That’s why the current fetish for Palestinian outrage has such legs as it spreads across campuses and governmental buildings in the West. Anyone (but a white, straight male) can apply for the designation of victim. Join the party! And what a model it is! While many have tried to emulate them, none have managed the nihilist hat trick of violence, obstinacy and craven guilt quite like the Palestinians who’ve been pushing this agenda since the 1972 Munich Olympics.

Having eschewed frontal military attacks on Israel and western targets as ineffective, the PLO and its successors discovered that the more grisly the attack, the more black their message — in Munich they massacred 11 Israeli athletes— there was a segment of leftist Western culture that couldn’t get enough of their heinous tactics. (Stephen Spielberg’s 2005 film Munich pitied his fellow Jews killed in Munich but concluded that all this revenge stuff was a dead end.)

Huh. Their Arab neighbours want nothing to do with Arafat’s Children. Egypt has a wall preventing Gazans from entering their county, Jordan has expelled them for counter-insurgency, Saudi Arabia ignores them. Only Qatar offers refuge. And then only to the billionaire kleptocrats who run Hamas from penthouses in Doha.

The Oct. 7 massacre is just the latest in this dance of death with western liberals. People of a certain age will recall the Marxist-besotted Vanessa Redgrave brandishing a Kalashnikov while dancing with the PLO and its rascally leader Yasser Arafat.  Her 1977 film The Palestinian was an orgy of guilt and hatred toward Israel. She’s had plenty of imitators in the media ever since.  In 2021 over 100 actors— including Richard Gere, Claire Foy, Tilda Swinton, and Susan Sarandon— slammed the terrorist designation of Palestinian “rights groups”.

The same apologists are now saying that, sure, Oct. 7 went a little too far, but Palestinian repatriation means a few eggs are going to get smashed in the making of a terror state. They want a cease fire with good taste.

Were the PLO successors in Hamas and Hezbollah able to articulate some coherent vision of the future beyond slaughter then these western struggle sessions might seem justified. It’s no surprise that Arafat was the epitome of “never misses an opportunity to miss an opportunity” in negotiations. If there’s one constant in the multiple denials of treaties with Israel it is their unflinching demand that Palestinians  throw every Jew they encounter into the Mediterranean on a march from “the river to the sea”.

The implacable marriage with extreme violence and racial hatred is their one and only position. Non-negotiable. None of this has any effect on the hot-house Marxists and anarchists who’ve set up shop in the universities and colleges of the West. In their protected status among the leafy tendrils of the Ivy League, a little brush with terror seems to titillate them. Occupying the quad in identical tents suppled by unnamed international groups dedicated to the overthrow of capitalism is their bougie weekend of roughing it in the bush.

Most probably wish they could experience a little of the martyrdom like the Palestinians (a gentle martyrdom naturally) or at the very least a cinematic clash wth authority such as their parents experienced at the hands of Chicago mayor Richard Daley during the 1968 Democratic convention. A tender tussle covered by their parents Medicare.

Who will stand up to these playtime antisemites? Alas, the grownups in the schools administration and in governments are cut from the same cloth. Having created safe spaces from micro aggression on their campus , they excuse the youthful exuberance of their students. (If your politics are radical, that is.)   Like president Joe Biden they do the suck-and-blow of modern debate. They decry antisemitism while cautioning that we just don’t understand the depths of Palestinian oppression. Evan as students call for a new Holocaust.

Having it both ways with Hamas means a one-way invitation to more chaos. Because there is no agenda beyond the performative terror extolled by demonstrators against Israel there is no way to rationally critique Hezbollah or Hamas. At least the Nazis proposed some freakazoid homeland for their people as they heartlessly slaughtered anyone who got in their way.

So it all becomes mob mentality packaged for feckless media. The Hamas doctoral groupies don’t demand anything from Hamas beyond their faux-serious chants and designer kaffiyehs in the House of Commons. No doubt Zia Haq will be joining them again soon in the struggle. If Stephen Guilbeault can go from criminal to cabinet, Canada is wide open to him now.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. New from the team of Evan & Bruce Dowbiggin now for pre-order: Deal With It: The Trades That Stunned The NHL & Changed Hockey. From Espo to Boston in 1967 to Gretz in L.A. in 1988 to Patrick Roy leaving Montreal in 1995, the stories behind the story. Launching on paperback and Kindle on #Amazon this week.

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Censorship Industrial Complex

Australian politicians attack Elon Musk for refusing to remove video of Orthodox bishop’s stabbing

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Photo by Leon Neal/Getty Images

From LifeSiteNews

By David James

The video is available on YouTube but Australia’s political class is singling out and waging war on X owner Elon Musk for his refusal to delete footage of the stabbing of Orthodox Bishop Mar Mari Emmanuel.

In a demonstration of governmental overreach the Australian prime minister, Anthony Albanese, has attacked Elon Musk, the owner of X (formerly Twitter) for not acceding to demands to put a worldwide ban on video footage of an attempted stabbing of a bishop in a Sydney church.

Albanese is not alone; virtually the entire Australian political class has joined in the attack. Tanya Plibersek, minister for Environment and Water called Musk an “egotistical billionaire.” Greens senator Sarah Hanson-Young described him as a “narcissistic cowboy.” Albanese chimed in by describing him as an “arrogant billionaire who thinks he’s above the law.”

Senator Jacqui Lambie went as far as suggesting that Musk be “jailed” for his refusal to bend to the demands of the Australian government.  

In response to Lambie’s comments, Musk declared her to be an “enemy of the people of Australia,” agreeing with another social media user who suggested it should be Lambie, not Musk, who belongs in jail.

The right wing Liberal-National coalition was only slightly less aggressive saying Musk was offering an “insulting and offensive argument” in his refusal to remove graphic footage of the stabbing. How Musk saying that posts should not be taken down is “insulting and offensive” was not explained.

The victim of the attack, Bishop Mar Mari Emmanuel, an Iraqi-born Assyrian Australian prelate who is head of the Eastern Christ the Good Shepherd Church, has displayed a maturity and moral virtue conspicuously lacking in the political arena. Emmanuel recorded a message saying that he loved his assailant, and that he wanted the video to stay online, urging people not to respond to violence with violence.

After the incident there were riots outside the church, resulting in 51 officers sustaining injuries. A 16-year-old boy has been arrested and charged with a religiously motivated terrorist attack.

That formulation is inaccurate. There is no effective protection of free speech in Australia, unlike the US, which has the First Amendment of the Constitution. The Federal government is currently preparing a misinformation and disinformation bill to force social media companies only to allow content of which the government approves.

As Senator Ralph Babet of the United Australia Party observes it is a “censorship agenda” that will be pushed no matter which party is in power. “The office of the eSafety commissioner was created under the Liberal Party and is now being emboldened by the Labor Party,” he writes.

The public battle with Musk is better seen as an attempt by the Australian government to control what is on the internet. The newly appointed eSafety commissioner, Julie Inman-Grant directed X to remove the posts, but X had only blocked them from access in Australia pending a legal challenge. The government then demanded that the posts be removed world-wide.

That the Australian political class thinks it has the right to issue edicts in countries where it has no legal jurisdiction is a demonstration of the lack of clarity in their thinking, and the intensity of their obsession with censoring.

Musk accurately characterised the situation in a post: “Should the eSafety Commissar (an unelected official) in Australia have authority over all countries on Earth?” It seems that many Australian politicians think the answer to that question is “Yes.”

The childish personal attacks on Musk, typical ad hominem attacks (going at the person rather than the argument) are revealing. What does the fact that Musk is a billionaire have to do with the legal status of the posts? Does having a lot of money somehow disqualify him from having a position?

If he is “egotistical” or “arrogant” what does that have to do with his logical or legal claims? How does exposing Musk as a narcissistic cowboy” have any relevance to him allowing content on the platform? Wouldn’t a narcissist be more likely to restrict content? The suspicion is that the politicians are resorting to such abuse because they have no argument.

The Australian government’s attack on Musk, which borders on the absurd, is just one of many being directed at X. An especially dangerous initiative is coming from the European Union’s Digital Services Act, which can apply fines of up to 6 per cent of the worldwide annual turnover, a ridiculously punitive amount. The United Kingdom’s communications regulator, Ofcom is even worse. It will have powers to fine companies up to 10 per cent of their global turnover.

Western governments are mounting an all out push to censor the internet, and Australia’s aggressive move is just part of that. What is never considered by governments and bureaucrats is the cost of such censorship.

The benefits of “protecting” people are always overstated and inevitably infantilize the population. The price is a degradation of social institutions and a legal system that does not apply equally to the citizenry and to the government. It is a step towards tyranny: rule by law rather than rule of law.

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