Connect with us

COVID-19

Keep It Simple S…ubsidy

Published

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

Follow Author

COVID-19

The Persecution of Canada’s “Other” Freedom Convoy Truckers

Published on

While thousands of serious criminal cases across Canada are dropped merely due to delays, many Convoy-related prosecutions on trivial charges continue more than three-and-a-half years later. The cases of Freedom Convoy truckers (left to right) Bern Bueckert, Clayton McAllister and Csaba Vizi (whose Volvo is shown at bottom) are still not fully resolved. (Sources of photos: (top left and right) screenshots from documentary Unacceptable?; (top middle) ThankYouTruckers.Substack; (bottom) Donna Laframboise)

By Donna Laframboise

On September 8, three and a half years after the 2022 Freedom Convoy departed Ottawa, and five long, stressful months after his trial actually ended, Robert Dinel walked out of court a free man.

Dinel, a Quebec heavy equipment operator who’d behaved entirely peacefully during the protest over Covid restrictions, had been charged with mischief and obstruction of police. Court proceedings were repeatedly delayed — four times alone just this year — until judge Matthew Webber of the Ontario Court of Justice finally stayed the charges on the grounds that Dinel’s Charter rights to a timely trial had been violated.

For Dinel, it was a relief. For Canadians concerned about freedom and justice, his legal ordeal was yet another example of a system gone off the rails.

Most Canadians are aware of the trials of convoy leaders Tamara Lich and Chris Barber, which ended in conviction; they are to be sentenced in October. Few may realize that many more protestors were charged, most for the relatively innocuous infraction of mischief, and have had their cases drag on and on through the courts for more than three years.

The record of Canada’s legal system clearly shows that mischief charges are routinely withdrawn before scarce and expensive court time is expended on relative trivialities. But when it comes to the truckers, the Crown attorneys at the Ottawa courthouse – employees of the Government of Ontario, not the federal government – appear to have lost all perspective. They are on a mission. The sheer intensity of the prosecution of Convoy members looks less like the fair administration of justice than revenge upon people who dared protest the arbitrary and oppressive measures of the Covid years.

The initial police crackdown itself was a mess. Those arrested were passed from police officer to police officer. Officials writing up the paperwork had no direct knowledge of what had actually transpired; extra charges appear to have been tacked on willy nilly. In Dinel’s case, the prosecution doesn’t even know the identity of the tactical officer who pointed a gun at his head and hauled him out of his vehicle on February 18, 2022.

In a police processing trailer four hours after his arrest, Dinel received a medical assessment from a paramedic. Seated and hand-cuffed throughout, the five-foot-three Dinel calmly and repeatedly told police he was in no fit state to be making decisions and that he wanted to speak to a lawyer. “I want to know what I’m signing,” he insisted. But the police officers, who outnumbered him ten-to-one, kept pushing him to sign an undertaking that he wouldn’t return to the protest area. The fact he never got his phone call – that he was denied his Charter right “to retain and instruct [legal] counsel without delay” – should have stopped this case in its tracks. The Crown chose to pursue it, anyway.

A week after Dinel’s mother died in July 2023, he suffered the first of four strokes. In December 2023, one occurred in the courtroom. “My whole face just seized up,” he recalls. “I had another stroke. My whole face drooped, then the judge freaked right out.” An ambulance was summoned and his trial was adjourned. “I hate court,” says Dinel. “It’s hard, you know. It’s stressful, it’s exhausting.” Rather than staying the charges on  compassionate grounds, the prosecution continued, with Dinel accompanied by a service dog.

Nova Scotia trucker Guy Meister spent hours in the same paddy wagon as Dinel the day they were arrested. After travelling from his Nova Scotia home to Ottawa for court appearances more than a dozen times – at considerable expense – in May of this year Meister was found guilty of mischief, but not of obstructing police. In late July, he was sentenced to 20 hours of community service, six months’ probation, and ordered to pay a $100 victim surcharge.

The trial for Windsor, Ontario trucker Csaba Vizi began just this month, the same day Robert Dinel’s charges were stayed. Video broadcast around the world in February 2022 shows him being assaulted by multiple police officers after he’d exited his truck and knelt down in the snow with his hands behind his head. None of those officers were themselves charged following this violence. None were forced to raise tens of thousands in lawyers’ fees, as Vizi has. Even protesters who have endured the stress of a trial and been acquitted have still not always walked free and clear, because the Crown has often insisted on filing appeals. As a result, defence lawyers routinely advise Freedom Convoy protesters that their legal nightmare isn’t actually over until an additional 30 days have come and gone. In one instance, the Crown waited until the last afternoon of the last permissible day to file its appeal.

These are just a few examples of what’s been going on in Canada’s justice system, one already beset by long delays for cases involving far more serious crimes. Credible news reports suggest that the majority of criminal cases in Ontario aren’t even making it to trial, with sexual assault
charges dropped because of delays. Yet the Convoy prosecutions continue.

Many people insist Covid is over, that we should all move on. But the legal persecution of the truckers who bravely protested government overreach in the bitter winter of early 2022 is far from over.

Donna Laframboise is an independent journalist and photographer. A former vice-president of the Canadian Civil Liberties Association, she is the author of Thank You, Truckers! Canada’s Heroes & Those Who Helped Them.

The original, full-length version of this article was recently published in C2C Journal.

Continue Reading

COVID-19

Canada’s COVID mandates linked to rise in ‘unexplained deaths’: new report

Published on

From LifeSiteNews

By Anthony Murdoch

The report drew on data from Statistics Canada and essentially concluded that thousands died not from the COVID-19 virus but because of public health rules.

A new report released by one of Canada’s leading constitutional freedom groups has raised alarm bells over the “harms caused” by COVID-19 lockdowns and injections imposed by various levels of government as well as a rise in unexplained deaths and bloated COVID-19 death statistics.

The report, titled “Post-COVID Canada: The rise in unexpected deaths,” was released September 3 by the Justice Centre for Constitutional Freedoms (JCCF). It found three key findings that arose from various Canadian governments’ handling of COVID.

“The report raises urgent concerns about the accuracy of Covid death reports, the harmful impacts of lockdowns and vaccine mandates, and the ongoing trend of unexplained deaths in Canada,” the JCCF noted.

The report drew on data from Statistics Canada and essentially concluded that thousands of Canadians died not from the COVID-19 virus itself but rather because of public health rules and vaccine mandates put in place.

The first main finding is that so called “unexpected” or “excess” deaths were significantly higher in 2022 after most lockdowns were in place but also at a time when most had had at least one injection of the mRNA COVID jabs.

The report found that there were “14,950 unexpected deaths in 2020, 13,510 unexpected deaths in 2021, and 31,370 unexpected deaths in 2022.”

“Canadians died at an alarming rate between 2020 and 2024. While public health officials and politicians claim that COVID was the cause, the data show that Covid death statistics were inflated and that thousands of Canadians died due to lockdowns, vaccine mandates, and their downstream effects,” the JCCF noted.

The report also found that deaths rose after the rollout of the COVID injections, noting that by the end of 2021, over 80 percent of Canadians were “fully vaccinated for Covid.”

“In 2022, however, Covid deaths increased to an all-time high of 19,906 – a 22 percent increase over 2020 Covid deaths,” the JCCF mentioned.

However, the JCCF observed that when looking at the statistics, in 2020 and 2021, Statistics Canada reported “690 fewer deaths from respiratory and pulmonary disease; 3,270 fewer deaths from respiratory infections and lung disease; 6,100 fewer deaths from vascular and other dementia diseases; and 1,000 fewer deaths from Parkinson’s, Alzheimer’s, and other degenerative diseases of the nervous system.”

“The data is clear: deaths that would otherwise have been attributed to these illnesses were attributed to Covid,” the JCCF stated.

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.

Deaths linked to COVID lockdowns and ‘unknown’ causes spiked in 2022

In the report, the JCCF observed that when it comes to deaths “linked” to COVID lockdowns, drug overdose, delayed medical procedures, and alcohol-related deaths “increased significantly during lockdowns.”

The data, which Statistics Canada attributed to deaths from “unknown causes” for “Canadians under 45, who passed away in 2022, over 15 percent of these did not have a cause of death.”

JCCF research and education coordinator Benjamin Klassen, who is also the lead author of the report, said, “This report shows that Canadians were seriously misled about Covid and about the safety and effectiveness of government lockdowns and vaccine mandates.”

“Governments not only failed to protect lives but also contributed to thousands of preventable deaths with their freedom-violating policies,” he observed.

Klassen noted that despite government “assurances” that its policies would “save lives,” the reality is that the “data reveals the opposite.”

“Lockdowns, delayed healthcare, and rushed vaccine mandates all appear to have significantly contributed to high numbers of additional and unexpected deaths from causes other than Covid,” he observed.

“Higher death rates in Canada have continued to rise – especially evident among young Canadians.”

Report recommends investigation into COVID jabs and lockdowns

The JCCF report recommends that three steps be urgently taken at once to ensure that transparency and accountability to the public happens.

The first recommendation calls for both Statistics Canada and all levels of government to “provide timely and accurate death data.”

The second recommendation is a call for an investigation into the “harms caused by Covid lockdowns and vaccines.”

Canadians deserve an independent and transparent inquiry into the short-term and long-term harms caused by government responses to Covid,” the report states.

The third recommendation calls for the protection of “freedom of expression for professionals.”

Canadian professionals need legislation that prohibits colleges of physicians and surgeons and other professional regulatory bodies from censoring and punishing professionals who express dissenting views on public health issues,” the report says.

It should be noted that, after Premier Danielle Smith took over, the provincial government of Alberta commissioned Dr. Gary Davidson to investigate the previous administration’s handling of COVID-19.

Davidson’s report, which was made public earlier this year, recommended an immediate halt to the experimental jabs for healthy children and teenagers, citing the risks the shots pose.

From about March 2020 to mid-2022, most of Canada was under various COVID-19 mandates and lockdowns, including mask mandates, at the local, provincial, and federal levels.

In October 2021, then-Prime Minister Justin Trudeau announced unprecedented COVID-19 jab mandates for all federal workers and those in the transportation sector, saying the unjabbed would 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.

Continue Reading

Trending

X