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Keep It Simple S…ubsidy

Published

5 years ago

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.

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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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Pentagon agency to simulate lockdowns, mass vaccinations, public compliance messaging

Published on June 12, 2025

By

From LifeSiteNews

By Tim Hinchliffe

With lockdowns, mass vaccination campaigns, and social distancing still on the table from the last around, it appears that AI and Machine Learning will play a much bigger role in the next.

DARPA is getting into the business of simulating disease outbreaks, including modeling interventions such as mass vaccination campaigns, lockdowns, and communication strategies.

At the end of May, the U.S. Defense Advanced Research Projects Agency (DARPA) put out a Request for Information (RFI) seeking information regarding “state-of-the-art capabilities in the simulation of disease outbreaks.”

The Pentagon’s research and development funding arm wants to hear from academic, industry, commercial, and startup communities on how to develop “advanced capabilities that drive technical innovation and identify critical gaps in bio-surveillance, diagnostics, and medical countermeasures” in order to “improve preparedness for future public health emergencies.”

As if masks, social distancing, lockdowns, and vaccination mandates under the unscientific guise of slowing the spread and preventing the transmission of COVID weren’t harmful enough, the U.S. military wants to model the effects of these exact same countermeasures for future outbreaks.

The RFI also asks participants “Fatality Rate & Immune Status: How are fatality rates and varying levels of population immunity (natural or vaccine-induced) incorporated into your simulations?“

Does “natural or vaccine-induced” relate to “population immunity” or “fatality rates” or both?

Moving on, the RFI gets into modeling lockdowns, social distancing, and mass vaccination campaigns, along with communication strategies:

Intervention Strategies: Detail the range of intervention strategies that can be modeled, including (but not limited to) vaccination campaigns, social distancing measures, quarantine protocols, treatments, and public health communication strategies. Specifically, describe the ability to model early intervention and its impact on outbreak trajectory.

The fact that DARPA wants to model these so-called intervention strategies just after the entire world experienced them suggests that these exact same measures will most likely be used again in the future:

“We are committed to developing advanced modeling capabilities to optimize response strategies and inform the next generation of (bio)technology innovations to protect the population from biological threats. We are particularly focused on understanding the complex interplay of factors that drive outbreak spread and evaluating the effectiveness of potential interventions.” — DARPA, Advanced Disease Outbreak Simulation Capabilities RFI, May 2025.

“Identification of optimal timelines and capabilities to detect, identify, attribute, and respond to disease outbreaks, including but not limited to biosensor density deployment achieving optimal detection timelines, are of interest.” ­— DARPA, Advanced Disease Outbreak Simulation Capabilities RFI, May 2025.

With lockdowns, mass vaccination campaigns, and social distancing still on the table from the last around, it appears that AI and Machine Learning will play a much bigger role in the next.

For future innovation, the DARPA RFI asks applicants to: “Please describe any novel technical approaches – or applications of diverse technical fields (e.g., machine learning, artificial intelligence, complex systems theory, behavioral science) – that you believe would significantly enhance the state-of-the-art capabilities in this field or simulation of biological systems wholistically.”

Instead of putting a Dr. Fauci, a Dr. Birx, a replaceable CDC director, a TV doctor, a big pharma CEO, or a Cuomo brother out there to lie to your face about how they were all just following The ScienceTM, why not use AI and ML and combine them with behavioral sciences in order to concoct your “public health communications strategies?”

When you look at recently announced DARPA programs like Kallisti and MAGICS, which are aimed at creating an algorithmic Theory of Mind to model, predict, and influence collective human behavior, you start to get a sense of how all these programs can interweave:

“The MAGICS ARC calls for paradigm-shifting approaches for modeling complex, dynamic systems for predicting collective human behaviour.” — DARPA, MAGICS ARC, April 2025

On April 8, DARPA issued an Advanced Research Concepts (ARC) opportunity for a new program called “Methodological Advancements for Generalizable Insights into Complex Systems (MAGICS)” that seeks “new methods and paradigms for modeling collective human behavior.”

Nowhere in the MAGICS description does it mention modeling or predicting the behavior of “adversaries,” as is DARPA’s custom.

Instead, it talks at length about “modeling human systems,” along with anticipating, predicting, understanding, and forecasting “collective human behavior” and “complex social phenomena” derived from “sociotechnical data sets.”

Could DARPA’s MAGICS program be applied to simulating collective human behavior when it comes to the next public health emergency, be it real or perceived?

“The goal of an upcoming program will be to develop an algorithmic theory of mind to model adversaries’ situational awareness and predict future behaviour.” — DARPA, Theory of Mind Special Notice, December 2024.

In December 2024, DARPA launched a similar program called Theory of Mind, which was renamed Kallisti a month later.

The goal of Theory of Mind is to develop “new capabilities to enable national security decisionmakers to optimize strategies for deterring or incentivizing actions by adversaries,” according to a very brief special announcement.

DARPA never mentions who those “adversaries” are. In the case of a public health emergency, an adversary could be anyone who questions authoritative messaging.

The Theory of Mind program will also:

… seek to combine algorithms with human expertise to explore, in a modeling and simulation environment, potential courses of action in national security scenarios with far greater breadth and efficiency than is currently possible.

This would provide decisionmakers with more options for incentive frameworks while preventing unwanted escalation.

We are interested in a comprehensive overview of current and emerging technologies for disease outbreak simulation, how simulation approaches could be extended beyond standard modeling methods, and to understand how diseases spread within and between individuals including population level dynamics.

They say that all the modeling and simulating across programs is for “national security,” but that is a very broad term.

DARPA is in the business of research and development for national security purposes, so why is the Pentagon modeling disease outbreaks and intervention strategies while simultaneously looking to predict and manipulate collective human behavior?

If and when the next outbreak occurs, the same draconian and Orwellian measures that governments and corporations deployed in the name of combating COVID are still on the table.

And AI, Machine Learning, and the military will play an even bigger role than the last time around.

From analyzing wastewater to learning about disease spread; from developing pharmaceuticals to measuring the effects of lockdowns and vaccine passports, from modeling and predicting human behavior to coming up with messaging strategies to keep everyone in compliance – “improving preparedness for future public health emergencies” is becoming more militaristically algorithmic by the day.

“We are exploring innovative solutions to enhance our understanding of outbreak dynamics and to improve preparedness for future public health emergencies.” — DARPA, Advanced Disease Outbreak Simulation Capabilities RFI, May 2025.

Reprinted with permission from The Sociable.

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Business

Audit report reveals Canada’s controversial COVID travel app violated multiple rules

Published on June 11, 2025

By

From LifeSiteNews

By Anthony Murdoch

Canada’s Auditor General found that government procurement rules were not followed in creating the ArriveCAN app.

Canada’s Auditor General revealed that the former Liberal government under Prime Minister Justin Trudeau failed multiple times by violating contract procurement rules to create ArriveCAN, its controversial COVID travel app.

In a report released Tuesday, Auditor General Karen Hogan noted that between April 2015 to March 2024, the Trudeau government gave out 106 professional service contracts to GC Strategies Inc. This is the same company that made the ArriveCAN app.

The contracts were worth $92.7 million, with $64.5 million being paid out.

According to Hogan, Canada’s Border Services Agency gave four contracts to GC Strategies valued at $49.9 million. She noted that only 54 percent of the contracts delivered any goods.

“We concluded that professional services contracts awarded and payments made by federal organizations to GC Strategies and other companies incorporated by its co-founders were not in accordance with applicable policy instruments and that value for money for these contracts was not obtained,” Hogan said.

She continued, “Despite this, federal government officials consistently authorized payments.”

The report concluded that “Federal organizations need to ensure that public funds are spent with due regard for value for money, including in decisions about the procurement of professional services contracts.”

Hogan announced an investigation of ArriveCAN in November 2022 after the House of Commons voted 173-149 for a full audit of the controversial app.

Last year, Hogan published an audit of ArriveCAN and on Tuesday published a larger audit of the 106 contracts awarded to GC Strategies by 31 federal organizations under Trudeau’s watch.

‘Massive scandal,’ says Conservative leader Pierre Poilievre

Conservative Party leader Pierre Poilievre said Hogan’s report on the audit exposed multiple improprieties.

“This is a massive scandal,” he told reporters Tuesday.

“The facts are extraordinary. There was no evidence of added value. In a case where you see no added value, why are you paying the bill?”

ArriveCAN was introduced in April 2020 by the Trudeau government and made mandatory in November 2020. The app was used by the federal government to track the COVID jab status of those entering the country and enforce quarantines when deemed necessary.

ArriveCAN was supposed to have cost $80,000, but the number quickly ballooned to $54 million, with the latest figures showing it cost $59.5 million.

As for the app itself, it was riddled with technical glitches along with privacy concerns from users.

LifeSiteNews has published a wide variety of reports related to the ArriveCAN travel app.

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