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.
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.
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.
By Barry Cooper
Nobody needs reminding that the Covid-19 pandemic – and the official responses to it – left hardly a person, group or country unaffected. From the lost learning of school closures to the crushed businesses and ruined lives, to the recurring social separation, to the physical toll itself, the wreckage came to resemble recession, social disintegration, war and the ravages of disease all in one. Yet the governments and organizations that designed and oversaw the emergency’s “management” have proved decidedly incurious about delving into whether they actually did a good job of it: what went right, what went wrong, who was responsible for which concepts and policies, who told the truth and who didn’t, and what might be done better next time. Few countries are performing any such formal evaluation (the UK and Sweden being prominent exceptions).
In Canada, the Justin Trudeau government has rebuffed calls for a public inquiry (perhaps a small mercy, as it is hard to envision this prime minister not politicizing such an exercise). Nearly every Canadian province is also ignoring the matter. The sole exception is Alberta, which in January created the Public Health Emergencies Governance Review Panel to, as its terms of reference state, “review the legislation and governance practices typically used by the Government of Alberta during the management of public health emergencies and other emergencies to recommend changes which, in the view of the Panel, are necessary to improve the Government of Alberta’s response to future emergencies.” The Panel’s inquiry fulfilled a promise made by Premier Danielle Smith when she was running for the leadership of the United Conservative Party.
These terms of reference need to be understood because they greatly influenced what followed – both the restrictions on the Review Panel’s inquiries and the broad scope of its recommendations, released in a densely written Final Report (367 pages including appendices) on November 15. The Panel was chaired by Preston Manning, Leader of the Official Opposition in Ottawa some 25 years ago but who more recently became a prominent voice of skepticism regarding the pandemic response, particularly the dismissive treatment of Canadians’ rights and liberties. With this report Manning has driven and led not one but two major pandemic-related reviews, as he was also central in the non-governmental National Citizens Inquiry on Canada’s Response to the Pandemic, which heard wrenching personal testimony.
Despite working under limitations, Manning and his colleagues have rendered valuable and, indeed, unparalleled public services with each effort. Here one must note whom Manning requested for Alberta’s Review Panel. They are in alphabetical order: Martha Fulford, an academic pediatrician at McMaster University with numerous scholarly articles to her credit; Michel Kelly-Gagnon, a businessman and President Emeritus of the Montreal Economic Institute; John C. Major, a former Justice of the Supreme Court of Canada; Jack Mintz, arguably Canada’s most distinguished living economist; and Rob Tanguay, a Calgary-based clinical psychiatrist specializing in treating addiction, depression and pain. Additional specialists prepared several of the report’s 11 appendices.
This is important because the response of Alberta’s NDP and its left-wing media helpers has been to accuse the Panel of mongering conspiracy theories and attempting to legitimize quack pseudo-science. They are using Manning, the founder and longtime leader of the Reform Party of Canada, as a convenient whipping boy. But they are effectively calling the entire panel – including a former member of the nation’s highest court who stood out for his calm and measured approach – a bunch of nutters if not worse. These critics seem to have emitted not one positive thought about any aspect of the Panel Report. That tells you a great deal about them, including that they probably didn’t even read it.
The report also prompted some balanced to favourable coverage, including from several journalists who previously were pro-lockdown, pro-masking and/or pro-vaccine. Edmonton Sun columnist Lorne Gunter, for example, termed the report “sensible and moderate,” noting that it calls for following “all of the credible science.” Gunter’s use of “all” is significant for, he notes, “a lot of what was pitched to the public as definitive scientific knowledge, such as the vitalness of mask and vaccine mandates, school closures, event cancellations and lockdowns was questioned by solid, reputable scientists (not just streetcorner anti-vaxxers and ‘I did my own research’ social-media experts).” Calgary Herald columnist Don Braid, a habitual UCP critic, also sounded impressed.
Alberta had a thoroughly designed, tested and previously deployed emergency plan. It just chose not to use it against Covid-19. This bizarre and gravely damaging decision has still not been explained.
So what is actually in the report? Chapter 1’s review of the Panel’s purpose notes it was set up to review the procedures Alberta has to respond to “any public emergency, including a public health emergency,” and how its preparations could be improved, including by broadening and deepening “the role of science in coping with future emergencies.” Its purpose was not to criticize Alberta’s actual responses to the Covid-19 event. While the Covid-19 public health emergency was the initial reason the panel was established, its recommendations would apply more broadly. And while science should be considered central to good public policy, science should not be regarded as consisting of a single narrative. Accordingly, “alternative perspectives” (Report, p. 5) should also be considered.
Alberta Emergency Management Agency
The spring 2020 spectacle of wildly shifting statements from public health officials and political leaders, its blizzard of decrees and edicts, proliferating “mandates,” haphazard changes of direction, imposition of seemingly arbitrary rules, public chaos, and sheer aura of panic – sweat-drenched faces, bulging eyes – might lead any citizen to believe that governments had never planned for or faced an emergency. The promiscuous use of “unprecedented” to describe Covid-19 only added to this feeling. In fact, Alberta had a thoroughly designed, tested and previously deployed emergency plan. It just chose not to use it against Covid-19. This bizarre and gravely damaging decision has still not been explained.
The Final Report’s largely overlooked Chapter 2 discusses improvements to the Alberta Emergency Management Agency (AEMA), making it important on several levels. The Panel recommends AEMA be adequately funded and remain the lead agency in dealing with any future emergency, including any future medical emergency. This alone is huge and hugely welcome. To ensure that individuals who are capable of dealing with emergencies and not just apprehended medical crises are in fact in charge, the Panel recommends several legislative changes to the Emergency Management Act and Public Health Act. Even better.
This sound recommendation rests upon the distinction between emergency management and normal policy decisions made by bureaucrats. The original Alberta emergency plan was developed in 2005 to deal with an anticipated influenza pandemic, and was in turn based on planning initiated across North America following the 9/11 terror atrocity. Alberta’s plan was similar to the approach followed by Sweden in 2020, which despite widespread initial condemnation proved highly successful. Its essential feature was that it was written and was to be implemented by individuals who specialize in emergencies, not by individuals with alleged expertise in the specific attributes of an anticipated emergency such as influenza or Covid-19, what the Panel on page 25 refers to as “subject-matter experts” (a more extensive quote is below).
By way of analogy, societies well-prepared to deal with emergencies do not put a limnologist in charge of an emergency response when riverbanks are unexpectedly breached and cause catastrophic flooding. Nor do they scramble to place a vulcanologist in charge when a volcano erupts and threatens lives and livelihoods. The purpose of putting highly trained emergency professionals in the lead during difficult situations is to remove as much as possible the shock effect from the surprises that emergencies typically bring, especially to normal politicians and conventional bureaucrats who expect normalcy to last forever and who panic when it doesn’t.
The emergency plan Alberta had going into 2020 was designed by David Redman, a former senior Canadian Forces officer whose 27 years of service included combat experience, a vocation that typically deals with unexpected surprises. The problem as the pandemic began was not in any lacunae that the Alberta emergency plan may have contained. Rather, as Redman, who at the time was director of Community Programs for Emergency Management (i.e., coordinating local responses), told C2C Journal in an interview in late 2020, “Governments took every plan they had ever written and threw them all out the window. No one followed the process. [The politicians] panicked, put the doctors in charge, and hid for three months.”
Redman was also emphatic on the question of fear, which is inevitably transmitted by panicked officials. He spent countless hours during the pandemic trying to warn every Canadian premier and many federal politicians that discarding emergency management principles and giving healthcare bureaucrats unprecedented authority was dangerous and would likely lead to disaster. Specifically, he urged healthcare officials and politicians to avoid expressing fear. Instead, he sadly noted in an interview with the Western Standard last week, “They used fear as a weapon. In emergency management you never use fear. You use confidence. You show confidence that the emergency can be handled and present a plan to show how this will be achieved.”
The Government of Alberta made a catastrophic and, as said, never-explained mistake when it turned the province over to a narrowly focused, unimaginative career bureaucrat credentialed only with an M.D. To be fair, this was probably too much for any one person, and Chief Medical Officer of Health Deena Hinshaw was placed in a near-impossible position. The consequences of this decision led to the removal of Premier Jason Kenney, and it is also why nearly the first thing his successor did was fire Hinshaw. That is also why the Manning Panel was commissioned.
So let us agree that the Panel’s recommendations to strengthen AEMA would improve emergency management the next time it is needed. That said, the Panel ignored the fact (or at least declined to state) that, had existing procedures been followed in 2020, things would have turned out much better.
Making Proper Use of Science – and Avoiding the Dictatorship of “Experts”
Chapter 3 deals with the place of “science” in public policy. It was self-evident to the Panel that science could help fashion sound public policy responses but could also be used for “political expedience and ideology.” Here the Panel was half-right. On the one hand it advanced a notion of “the scientific method” that dominated science classes a couple of generations ago. According to this account, a researcher develops testable hypotheses that can be modified in light of experimental results. Such was the philosophy of science that I was taught in grade 7 physics.
Its great defect is that it takes no account of what we now call conflicting paradigms or of what German Enlightenment-era philosopher Immanuel Kant called the power of judgment. A pandemic, for example, is not a “fact” but the product of somebody’s judgement. On the other hand, the Panel showed great clarity in asserting that “science is open to the consideration and investigation of alternative hypotheses…and is subject to some degree of uncertainty as an ever-present characteristic of scientific deliberations.” (Report, p. 24)
Before considering how it elaborated the problems of conflicting and alternative hypotheses and of uncertainty, one should note how opponents to both the Panel and UCP government responded to its commonsensical observations. According to NDP Leader Rachel Notley, they were “incredibly irresponsible.” Indeed, she asserted, “What you see is an invitation to normalize conspiracy theories and pseudo-science at the expense of evidence-based medical care.” Notley and CTV went on to attack Premier Smith for embracing “fringe views” – including those found in the October 2020 Great Barrington Declaration, a document written by three of the world’s most respected epidemiologists and subsequently endorsed by, at last count, 939,000 fellow scientists.
One of the Panel-endorsed “fringe views” was that “the number one priority” when a pandemic event is declared should be “protection of the most vulnerable,” (Report, p. 25) which is to say not everybody. Should a particular pandemic’s impact subsequently spread to other social, political and economic relationships, this priority may be modified and adjusted. That sounds eminently responsible, but the NDP wants everybody locked down right from the start.
Still the real question is: who would order the adjustments? The Panel’s answer is forthright, much to the consternation of scientific “experts”: “That a clear and conscious decision be made by elected officials as to the scope of the scientific advice to be sought and that this decision not be left entirely to the subject-matter agency, given that it may have a narrower perspective than that actually required.” (Report, p. 25, emphasis added) As Manning later said: “Political people have to be responsible for the overall direction and management because they’re the people that the public can hold accountable.”
Manning’s determination to avoid having a democracy become a dictatorship of “experts” also reflects a critical aspect of pandemic response: that there are issues far beyond medicine in play, and that the associated decisions are not scientific ones. Weighing risks, for example, is an exercise in logic (a branch of philosophy) and judgment, which depends on inductive reasoning. Assessing costs and benefits of various possible actions is economic in nature. And then, deciding just how much risk to take on and what costs to bear in the pursuit of benefits are questions of ethics. Such things should be undertaken by politicians because, if the people as a whole have a different view of such matters, they can vote in a different government (or, as happened in Alberta, select a decidedly different leader from the same party).
To the experts and their spokespersons, this was an anathema. Lorian Hardcastle, an associate professor in the University of Calgary’s law school and medical school, warned: “We would see ideologically driven response to a public health emergency” that would make it difficult “to keep people alive.” We can characterize the Hardcastle position, which was endorsed strongly during the pandemic by legacy media, the NDP, the “expert” class and the health care bureaucracy, as the “orthodox” doctrine. A health care emergency must be left to the so-called health care experts. Everyone else (including presidents, prime ministers and premiers) should defer to their expertise and do as they are told. The public “conversation” is entirely one-way.
In reality, however, public health does not involve just a single disease but all aspects of the health of a population. Thus, focussing on illness stemming from the SARS-CoV-2 virus was not enough even for so-called specialists because such a focus meant that, for instance, cancer screening was postponed so hospitals would be empty enough to accept the (incorrectly) projected tsunami of Covid-19 patients. Yet cancer is also part of public health, as was the collateral damage from the economic and social effects of lockdowns, school closures and social distancing, none of which the orthodox doctrine considers. Skeptics pointed out all of this throughout the pandemic – and were shouted down as granny-killers.
A neurology professor says that Canada likely paid the highest prices in the world for the experimental COVID-19 vaccines.
On November 26, University of British Columbia professor Steven Pelech joined pro-family and pro-freedom activists, including Member of European Parliament Christine Anderson, in Vancouver where he discussed Canada’s handling of COVID vaccines.
“So, it was negotiated, of course it was a secret contract,” he said, referring to the sale of experimental COVID vaccines in Canada. “We still don’t know what we paid per shot.”
While the official number is unknown, Pelech revealed that the Auditor General of Canada “gave us a clue, and it was close to $38 per shot” for the Pfizer vaccine.
This number is compared to United States and Europe paying about $22-$23 a shot. Notably, the vaccine cost Pfizer about U.S.$1.18 per shot to produce.
Additionally, in his upcoming book, Down the COVID-19 Rabbit Hole: Independent Scientists and Physicians Unmask the Pandemic, Pelech wrote that vaccine in Albania, Brazil, and South Africa cost U.S.$12, U.S.$10, and U.S.$10, respectively.
“Canada has paid the highest prices in probably the world for these vaccines,” he added.
According to Pelech, the Canadian government, under the leadership of Prime Minister Justin Trudeau, negotiated to purchase seven COVID shots for each Canadian. He added that the deal was set before the vaccines were approved in Canada.
Notably, Pelech’s comments come just days before a Statistic Canada report showed that deaths from both COVID-19 and “unspecified causes” surged following the release of the so-called “safe and effective” vaccines.
LifeSiteNews has published comprehensive research on the dangers of receiving the experimental vaccine, including heart damage and blood clots.
As LifeSiteNews previously reported, Health Canada ordered 238 million COVID injections from Pfizer Canada, which includes some 30 million for 2023 and 2024. The total cost of just the Pfizer contract has not been revealed, and the Department of Health has refused to comment on the total cost.
The Trudeau government, with the help of the Department of Health, heavily promoted the COVID jabs, which were rushed to market. It is still promoting the shots, this time the recently approved booster.
In 2021, Trudeau said Canadians “vehemently opposed to vaccination” do “not believe in science,” are “often misogynists, often racists,” and questioned whether Canada should continue to “tolerate these people.”
A recent study done by researchers at the Canada-based Correlation Research in the Public Interest found that 17 countries have a “definite causal link” between peaks in all-cause mortality and the fast rollouts of the COVID shots and boosters.
In October, LifeSiteNews reported how the Polyomavirus Simian Virus 40 (SV40), which is a monkey-linked DNA sequence known to cause cancer when it was used in old polio vaccines, has been confirmed by Health Canada to be in the Pfizer COVID shot, a fact that was not disclosed by the vaccine maker to officials.
In November, officials with Canada’s Department of Health refused to release data concerning internal audits related to the COVID crisis that show “critical weaknesses and gaps” according to their own department memo.
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