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.
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.
According to a detailed overview by the pro-life Charlotte Lozier Institute, Pfizer, Moderna, and Johnson & Johnson all used fetal cells derived from aborted babies during their COVID shots’ testing phase; and Johnson & Johnson also used the cells during the design and development and production phases. The American Association for the Advancement of Science’s journal Science and even the left-wing “fact-checking” outlet Snopes have also admitted the shots’ abortion connection, which gives many a moral aversion to associating with them.
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.
Canada’s Department of Health has commissioned research to study the impact of outdoor play on kids’ mental well-being in light of COVID lockdowns and “remote” school classes that, for a time, banned outdoor play and in-person learning throughout most of the nation.
In a notice to consultants titled “Systematic Literature Reviews And Meta Analyses Supporting Two Projects On Children’s Health And Covid-19,” the Department of Health admitted that “Exposure to green space has been consistently associated with protective effects on children’s physical and mental health.”
A final report, which is due in 2026, will provide “Health Canada with a comprehensive assessment of current evidence, identify key knowledge gaps and inform surveillance and policy planning for future pandemics and other public health emergencies.”
Bruce Squires, president of McMaster Children’s Hospital of Hamilton, Ontario, noted in 2022 that “Canada’s children and youth have borne the brunt” of COVID lockdowns.
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. Schools were shut down, parks were closed, and most kids’ sports were cancelled.
Mandatory facemask polices were common in Canada and all over the world for years during the COVID crisis despite over 170 studies showing they were not effective in stopping the spread of COVID and were, in fact, harmful, especially to children.
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 un-jabbed would no longer be able to travel by air, boat, or train, both domestically and internationally.
As reported by LifeSiteNews, a new report released by the Justice Centre for Constitutional Freedoms (JCCF) 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.
Indeed, a recent study showed that COVID masking policies left children less able to differentiate people’s emotions behind facial expressions.
COVID vaccine mandates and lockdowns, which came from provincial governments with the support of the federal government, split Canadian society.
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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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