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Keep It Simple S…ubsidy

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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

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Trump DOJ seeks to quash Pfizer whistleblower’s lawsuit over COVID shots

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From LifeSiteNews

By Calvin Freiburger

The Justice Department attorney did not mention the Trump FDA’s recent admission linking the COVID shots to at least 10 child deaths so far.

The Trump Department of Justice (DOJ) is attempting to dismiss a whistleblower case against Pfizer over its COVID-19 shots, even as the Trump Food & Drug Administration (FDA) is beginning to admit their culpability in children’ s deaths.

As previously covered by LifeSiteNews, in 2021 the BMJ published a report on insider information from a former regional director of the medical research company Ventavia, which Pfizer hired in 2020 to conduct research for the company’s mRNA-based COVID-19 shot.

The regional director, Brook Jackson, sent BMJ “dozens of internal company documents, photos, audio recordings, and emails,” which “revealed a host of poor clinical trial research practices occurring at Ventavia that could impact data integrity and patient safety […] We also discovered that, despite receiving a direct complaint about these problems over a year ago, the FDA did not inspect Ventavia’s trial sites.”

According to the report, Ventavia “falsified data, unblinded patients, employed inadequately trained vaccinators, and was slow to follow up on adverse events reported in Pfizer’s pivotal phase III trial.” Overwhelmed by numerous problems with the trial data, Jackson filed an official complaint with the FDA.

Jackson was fired the same day, and Ventavia later claimed that Jackson did not work on the Pfizer COVID-19 shot trial; but Jackson produced documents proving she had been invited to the Pfizer trial team and given access codes to software relating to the trial. Jackson filed a lawsuit against Pfizer for violating the federal False Claims Act and other regulations in January 2021, which was sealed until February 2022. That case has been ongoing ever since.

Last August, U.S. District Judge Michael Truncale dismissed most of Jackson’s claims with prejudice, meaning they could not be refiled. Jackson challenged the decision, but the Trump DOJ has argued in court to uphold it, Just the News reports, with DOJ attorney Nicole Smith arguing that the case concerns preserving the government’s unfettered power to dismiss whistleblower cases.

The rationale echoes a recurring trend in DOJ strategy that Politico described in May as “preserving executive power and preventing courts from second-guessing agency decisions,” even in cases that involve “backing policies favored by Democrats.”

Jackson’s attorney Warner Mendenhall responded that the administration “really sort of made our case for us” in effectively admitting that DOJ is taking the Fair Claims Act’s “good cause” standard for state intervention to mean “mere desire to dismiss,” which infringes on his client’s “First Amendment right to access the courts, to vindicate what she learned.”

Mendenhall added that in a refiled case, Jackson “may be able to bring a very different case along the same lines, but with the additional information” to prove fraud, whereas rejection would send the message that “if fraud involves government complicity, don’t bother reporting it.”

“The truth is we do not know if we saved lives on balance,” admitted FDA Chief Medical Officer Vinay Prasad in a recent leaked email. “It is horrifying to consider that the U.S. vaccine regulation, including our actions, may have harmed more children than we saved. This requires humility and introspection.”

The COVID shots have been highly controversial ever since the first Trump administration’s Operation Warp Speed initiative prepared and released them in a fraction of the time any previous vaccine had ever been developed and tested. As LifeSiteNews has extensively covered, a large body of evidence has steadily accumulated over the past five years indicating that the COVID jabs failed to prevent transmission and, more importantly, carried severe risks of their own.

Ever since, many have intently watched and hotly debated what President Donald Trump would do about the situation upon his return to office. Though he never backed mandates like former President Joe Biden did, for years Trump refused to disavow the shots to the chagrin of his base, seeing Operation Warp Speed as one of his crowning achievements. At the same time, during his latest run he embraced the “Make America Healthy Again” movement and its suspicion of the medical establishment more broadly.

So far, Trump’s second administration has rolled back several recommendations for the shots but not yet pulled them from the market, despite hiring several vocal critics of the COVID establishment and putting the Department of Health & Human Services under the leadership of America’s most prominent anti-vaccine advocate, Robert F. Kennedy Jr. Most recently, the administration has settled on leaving the current jabs optional but not supporting work to develop successors.

In a July interview, FDA Commissioner Marty Makary asked for patience from those unsatisfied by the administration’s handling of the shots, insisting more time was needed for comprehensive trials to get more definitive data.

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University of Colorado will pay $10 million to staff, students for trying to force them to take COVID shots

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From LifeSiteNews

By Calvin Freiburger

The University of Colorado Anschutz School of Medicine caused ‘life-altering damage’ to Catholics and other religious groups by denying them exemptions to its COVID shot mandate, and now the school must pay a hefty settlement.

The University of Colorado’s Anschutz School of Medicine must pay more than $10.3 million to 18 plaintiffs it attempted to force into taking COVID-19 shots despite religious objections, in a settlement announced by the religious liberty law firm the Thomas More Society.

As previously covered by LifeSiteNews, in April 2021, the University of Colorado (UC) announced its requirement that all staff and students receive COVID jabs, leaving specific policy details to individual campuses. On September 1, 2021, it enforced an updated policy stating that “religious exemption may be submitted based on a person’s religious belief whose teachings are opposed to all immunizations,” but required not only a written explanation why one’s “sincerely held religious belief, practice of observance prevents them” from taking the jabs, but also whether they “had an influenza or other vaccine in the past.”

On September 24, the policy was revised to stating that “religious accommodation may be granted based on an employee’s religious beliefs,” but “will not be granted if the accommodation would unduly burden the health and safety of other Individuals, patients, or the campus community.”

In practice, the school denied religious exemptions to Catholic, Buddhist, Eastern Orthodox, Evangelical, Protestant, and other applicants, most represented by Thomas More in a lawsuit contending that administrators “rejected any application for a religious exemption unless an applicant could convince the Administration that her religion ‘teaches (them) and all other adherents that immunizations are forbidden under all circumstances.’”

The UC system dropped the mandate in May 2023, but the harm had been done to those denied exemptions while it was in effect, including unpaid leave, eventual firing, being forced into remote work, and pay cuts.

In May 2024, a three-judge panel of the U.S. Tenth Circuit Court of Appeals rebuked the school for denying the accommodations. Writing for the majority, Judge Allison Eid found that a “government employer may not punish some employees, but not others, for the same activity, due only to differences in the employee’s religious beliefs.”

Now, Thomas More announces that year-long settlement negotiations have finally secured the aforementioned hefty settlement for their clients, covering damages, tuition costs, and attorney’s fees. It also ensured the UC will agree to allow and consider religious accommodation requests on an equal basis to medical exemption requests and abstain from probing the validity of applicants’ religious beliefs in the future.

“No amount of compensation or course-correction can make up for the life-altering damage Chancellor Elliman and Anschutz inflicted on the plaintiffs and so many others throughout this case, who felt forced to succumb to a manifestly irrational mandate,” declared senior Thomas More attorney Michael McHale. “At great, and sometimes career-ending, costs, our heroic clients fought for the First Amendment freedoms of all Americans who were put to the unconscionable choice of their livelihoods or their faith during what Justice Gorsuch has rightly declared one of ‘the greatest intrusion[s] on civil liberties in the peacetime history of this country.’ We are confident our clients’ long-overdue victory indeed confirms, despite the tyrannical efforts of many, that our shared constitutional right to religious liberty endures.”

On top of the numerous serious adverse medical events that have been linked to the COVID shots and their demonstrated ineffectiveness at reducing symptoms or transmission of the virus, many religious and pro-life Americans also object to the shots on moral grounds, due to the ethics of how they were developed.

Catholic World Report notes that similarly large sums have been won in other high-profile lawsuits against COVID shot mandates, including $10.3 million to more than 500 NorthShore University HealthSystem employees in 2022 and $12.7 million to a Catholic Michigander fired by Blue Cross Blue Shield in 2024.

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