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.
COVID-19
Keep It Simple S…ubsidy
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.
From LifeSiteNews
Freedom Convoy leader Tamara Lich is slated to be sentenced on July 23.
In a recent update by The Democracy Fund, the group noted that “Sentencing for Ms. Lich is scheduled for July 23rd and 24th before Justice Perkins-McVey in Ottawa.”
In April of this year, Lich and Chris Barber were found guilty of mischief for their roles as leaders of the 2022 protest and as social media influencers. The conviction came despite the non-violent nature of the popular movement.
TDF also noted that the full 108 page judgment of Justice Perkins-McVey’s ruling is now available online.
According to TDF, the “Court determined that both Ms. Lich and Mr. Barber were leaders of the Freedom Convoy 2022 movement and were involved in organizing and leading trucks and other vehicles from western Canada.”
“While there was no evidence that Ms. Lich owned a vehicle emitting fumes or honking, or that she blocked access to buildings, the Court noted her creation of the Freedom Convoy 2022 Facebook page, which gained a large following, and her involvement in setting up the GoFundMe and later GiveSendGo fundraising pages,” noted TDF.
As for Barber, his sentencing has been further delayed. The delay in his case follows an update he gave earlier this month in which he announced that the Crown wants to jail him for two years in addition to seizing the truck he used in the protest. As such, his legal team has asked for a stay of proceedings for the time being.
The Lich and Barber trial concluded in September of 2024, more than a year after it began. It was only originally scheduled to last 16 days.
Lich and Barber were initially arrested on February 17, 2022, meaning their legal battle has lasted longer than three years.
Despite the peaceful nature of the Freedom Convoy, then-Prime Minister Justin Trudeau and his Liberal government invoked the Emergencies Act to clear-out protesters, an action a federal judge has since said was “not justified.” During the clear-out, an elderly lady was trampled by a police horse and many who donated to the cause had their bank accounts frozen.
The actions taken by the Trudeau government were publicly supported by Mark Carney at the time, who won re-election on April 28 and is slated to form a minority government.
From LifeSiteNews
Alberta Justice Also Argento concluded that the major airline WestJet must pay Duong Yee, an accountant based in Calgary, $65,587.72 in damages.
Canada’s second-largest airline has been ordered by a judge to compensate one of its employees who refused to take the COVID shot and was “wrongfully terminated.”
In a ruling, Alberta Justice Also Argento concluded that the major airline WestJet must pay Duong Yee, an accountant based in Calgary, $65,587.72 in damages.
Court documents show that Yee, who worked for the company for 11 years, was put on unpaid leave on November 1, 2021, and was then fired from her job. Her termination came shortly after the federal government of now former Prime Minister Justin Trudeau had mandated that all workers of federally regulated industries receive the COVID shots.
Yee had tried to avoid getting the COVID shot through a religious exemption, which was denied by WestJet.
Justice Argento ruled that WestJet could have allowed Yee to work from home to avoid having to get the jab instead of firing her outright.
“The regulations only required the defendant’s employees who were physically accessing ‘aerodrome property’ to be vaccinated,” wrote Argento.
“They would not have applied to the plaintiff while she continued to work from home. The defendant was aware of the regulations, but did not consider whether the plaintiff could continue working from home as an alternative to dismissal.”
Justice Argento also observed in his ruling that the plaintiff’s “refusal” to get the COVID jab and comply with WestJet’s jab policy “did not impact her job performance,” and it did not “endanger the defendant’s employees or the public as the plaintiff was working from home.”
“While the plaintiff was wrongfully terminated, the surrounding circumstances do not attract aggravated damages,” noted the justice.
“The dismissal was not conducted in an unduly insensitive or egregious manner. Furthermore, the plaintiff led virtually no evidence explaining how the dismissal impacted her.”
Yee’s claims for both moral and aggravated damages were dismissed by the court.
In October 2021, Trudeau announced unprecedented COVID-19 jab mandates for all federal workers and those in the transportation sector and said the unjabbed will no longer be able to travel by air, boat, or train, both domestically and internationally.
This policy resulted in thousands losing their jobs or being placed on leave for non-compliance.
Many pilots and airline workers lost their jobs as a result but have fought back via lawsuits.
LifeSiteNews has published an extensive amount of research on the dangers of the experimental COVID mRNA jabs that include heart damage and blood clots.
The mRNA shots have also been linked to a multitude of negative and often severe side effects in children, and all have connections to cell lines derived from aborted babies.
Canada’s Vaccine Injury Support Program (VISP) was launched in December 2020 after the government gave vaccine makers a shield from liability regarding COVID-19 jab-related injuries.
Recently, VISP injury payments are expected to go over budget, according to a Canadian Department of Health memo.
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