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Middle Class

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The Middle Class

The middle class.

This phrase is shrouded in mystery but typically refers to ones occupation, income, education and social status in relation to others.

Depending on the political party using the term, the underlying definition can change.

The Liberal Party has an entire section of it’s 2019 election platform dedicated to the middle class and people working hard to join it.

Unfortunately, the Minister of Middle-Class Prosperity has had difficulties defining the characteristics of the people she was elected to represent.

Excuse me if I’m a little concerned that the middle class might be forgotten as a result.

Tax Free

Making Life More Affordable

Any claims of government giving anything to citizens “tax free” should be met with scrutiny.

All government funding ultimately comes from taxpayers so to suggest that government can give you tax free funds is simply not accurate. Someone is being taxed in order to provide the benefits.

Effective for 2016 tax filings, the Liberal Government lowered the tax rate on income in the 2nd tax bracket by 1.5%. This bracket currently applies to income between $48,535 to $97,069. All other brackets have either remained the same or increased since that time.

For those earning up to the maximum of $97,069, this results in tax savings of $1,456.

In conjunction with the 1.5% tax drop, the Liberal Government removed the Family Tax Cut (FTC). This allowed families with children to notionally transfer income from the spouse with higher annual income to the other spouse.

Depending on your situation, this could result in a tax credit of up to $2,000.

Effective in 2019, the Liberal Government implemented an increase in the Canada Pension Plan annual rates. By 2023, this will result in additional annual employee contributions of $1,107 for those earning above the annual ceiling of $65,700.

The employer portion would increase in proportion, putting further pressure on small business cash flows.

While the Liberal Government may claim that they are “making life more affordable”, the numbers above paint a different picture.

Income Tax Act

What should the government do?

The Canadian Income Tax Act (ITA) has not seen a major review since the late 1960’s. It is now a patchwork of legislation that is difficult for even seasoned Chartered Professional Accountants to apply into practice.

Complexities within the ITA result in a significant added administrative burdens. Instead of focusing on growing your business, creating jobs or planning for retirement, significant time is lost navigating the ITA.

The government should immediately engage in a full scale review of the ITA. The review must consult the private sector and address all major industries across Canada. The revisions should be made in such a way as to allow for amendments in future as the economy continues to evolve.

Key areas that should be the focus of a review:

  1. Simplify: The tax system needs to be fair, efficient and competitive.

  2. Modernize: Tax policy needs to be able to keep up with the digital economy.

  3. Be Supportive: Changes to Canada Revenue Agency (CRA) policies that will ease compliance for taxpayers.

Keep it Simple

Simple:

In Alberta, there are now nine personal tax brackets, a patch work of credits and numerous complexities to navigate in complying with regulations relating to owner-operator business.

Serious consideration should be given to shift away from taxing income and toward taxing consumption instead. It is far more beneficial to tax activities that reduce the wealth of society, ie. consumption, rather than tax the creation of wealth.

The simplest way to make the shift to a consumption based tax system would be to increase the rate of federal GST. This would be offset with reductions in personal tax rates. The personal tax rate drops could be implemented in a manner that preserves the progressive tax regime, but with significantly fewer tax brackets.

For those in the lower tax brackets, the majority of their annual income is spent on non-GST’able expenditures such as groceries, rent and health care. Those with higher disposable incomes would contribute more to government revenues as a result. This preserves the progressive tax regime, protects the vulnerable and doesn’t penalize the creation of wealth.

More comprehensive reforms could also be analyzed to determine the best solution for Canadians.

Update

Modernize:

In recent months, there has been a growing call for government to implement a “wealth tax”. The New Democratic Party has suggested that a 1% on families with a net worth in excess of $20 million would generate net tax revenue of $5.6 billion in 2020-21.

As mentioned above, government should not introduce further tax on the creation of wealth. This tax policy will only further drive investment out of the country at a time that we can ill afford it.

Additionally, there have been calls to add an additional layer of tax on big tech companies, most notably Google, Amazon, Facebook and Apple. There is no doubt that these companies have seen record profits in 2020 but haphazardly implementing a 3% tax on the revenues of these companies will likely back fire.

The reason why large corporations are able to take advantage of low tax rates in foreign jurisdictions is due to varied rates across the globe. If one jurisdiction makes the decision to implement a tax increase, naturally, corporations will seek out lower tax jurisdictions.

If government is concerned with tech giants skirting federal taxes, they need to consult with all jurisdictions in which these companies operate. A unilateral tax will simply resulting in these corporations moving profits to lower tax jurisdictions.

Support

Be Supportive:

The Canada Revenue Agency is typically thought of with disdain by many Canadian taxpayers. Some of these feelings are self induced, others are not.

Much like the difficulties that individuals and businesses have in navigating the Income Tax Act (ITA), the same can be said for CRA agents. While the senior agents typically have specific training and field experience, the majority of front line CRA agents simply do not have the necessary training to effectively help taxpayers navigate the complexities of the ITA.

In order for the CRA to provide more supportive service to taxpayers, they too need to see a reform in the ITA. It simply is not fair to ask agents to be able to interpret the ITA and how it applies to each taxpayer they speak with.

Secondly, the CRA needs to revise audit training procedures for their agents that considers materiality of each case. Far too often I see audit cases that request significant amounts of supporting documentation in response to a taxpayers nominal expense claim. Some of these being less than $100.

This places a significant administrative burden on taxpayers, specifically small business owners. It also leads to a great deal of frustration, which further damages the relationship between this government agency and the general public.

 

Final Thoughts

Final Thoughts

Canada’s middle class has fallen on difficult times in recent years. This has only been exasperated by the impacts of COVID-19.

For far too long, Canada has lost investment and stymied growth due to its archaic tax regime.

The Liberal government has promised to “build back better” and create an economy that is just and equitable for all. Details of these plans remain to be seen.

Instead of grandiose plans stemming from pie-in-the-sky slogans, the government should immediately look to reform the tax system.

Focusing on simplicity, modernization and reducing administrative burden will give taxpayers the confidence to know that their hard work will translate into consistent after-tax earnings.

It’s time to unleash the power of the Canadian worker, supported by a competitive and modern tax regime. Future generations depend on it.

https://www.jaredpilon.com/

I have recently made the decision to seek nomination as a candidate in the federal electoral district of Red Deer - Mountain View. As a Chartered Professional Accountant (CPA), I directly see the negative impacts of government policy on business owners and most notably, their families. This has never been more evident than in 2020. Through a common sense focus and a passion for bringing people together on common ground, I will work to help bring prosperity to the riding of Red Deer – Mountain View and Canada. I am hoping to be able to share my election campaign with your viewers/readers. Feel free to touch base with me at the email listed below or at jaredpilon.com. Thanks.

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Leave our Kids Alone

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Vote Splitting

Health

Transgender activists are threatening the author of scathing UK report on child ‘sex changes’

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Dr. Hilary Cass, author of the Cass Review, YouTube screenshot

From LifeSiteNews

By Jonathon Van Maren

That a female physician has been advised to stop taking the bus or the train because she might be assaulted by trans activists for attempting to protect children from a horrifying – and ongoing – medical scandal should be shocking to us all.

Dr. Hilary Cass, the 66-year-old physician who led the team behind the 366-page Cass Review, has become a target of trans activists as the repercussions of her findings reverberate through the political and medical establishment. The abuse is not confined merely to online; she has been advised not to use public transport for her own safety. 

In an interview with the Times, Cass stated that critics of her report are putting children “at risk” by spreading “straight disinformation” and that criticisms, thus far, have been “completely wrong.” One Labour MP accused Cass of ignoring “100 transgender studies” in her findings. This, says Cass, is disingenuous in the extreme. 

“I have been really frustrated by the criticisms, because it is straight disinformation,” Cass told the Times. “It started the day before the report came out when an influencer put up a picture of a list of papers that were apparently rejected for not being randomized control trials. That list has absolutely nothing to do with either our report or any of the papers.” 

“If you deliberately try to undermine a report that has looked at the evidence of children’s healthcare, then that’s unforgiveable,” she continued. “You are putting children at risk by doing that.” The 100 papers that were allegedly “left out” of the report, Cass noted, were each individually examined by her team of researchers, who “pulled the results from the ones that were high quality and medium quality, which was 60 out of 103.” 

Cass’s crime, of course, is that her report debunks the transgender narrative. She has been encouraged, she told the Times, by the impact of her report in many quarters – but the response elicited from trans activists has been “pretty aggressive” and she noted that the vitriol spiked each time the Cass Review reported something “people don’t like.”  

“There are some pretty vile emails coming in at the moment,” she said of the profanity-laced digital missives coming her way. “Most of which my team is protecting me from, so I’m not getting to see them. What dismays me is just how childish the debate can become. If I don’t agree with somebody then I’m called transphobic or a TERF [trans-exclusionary radical feminist].” 

When asked if the vitriol was wearing her down, Cass responded: 

No… it’s personal, but these people don’t know me. I’m much, much more upset and frustrated about all the disinformation than I am about the abuse. The thing that makes me seethe is the misinformation. I’m not going on public transport at the moment, following security advice, which is inconvenient.

Indeed, six clinics, she said, refused to share research into the impact of puberty blockers – Cass called their reaction “coordinated” and “ideologically driven” and noted that “they were not particularly friendly to us when we approached.” 

Although Cass will not be carrying out the recently-announced review of adult gender clinics, she did condemn GenderGP – which we have reported on in this space several times – for continuing to advertise and prescribe puberty blockers, noting that the “care” provided by Dr. Helen Webberley “certainly doesn’t come anywhere near anything one would recognise as adequate in terms of a proper assessment and exploration.”  

That a female physician has been advised to stop taking the bus or the train because she might be assaulted by trans activists for attempting to protect children from a horrifying – and ongoing – medical scandal should be shocking to us all. The last few years have desensitized us to this sort of behavior. Fortunately, it appears that the Cass Review’s findings are having a seismic impact on the debate trans activists desperately tried to avoid, nonetheless. 

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Jonathon Van Maren is a public speaker, writer, and pro-life activist. His commentary has been translated into more than eight languages and published widely online as well as print newspapers such as the Jewish Independent, the National Post, the Hamilton Spectator and others. He has received an award for combating anti-Semitism in print from the Jewish organization B’nai Brith. His commentary has been featured on CTV Primetime, Global News, EWTN, and the CBC as well as dozens of radio stations and news outlets in Canada and the United States.

He speaks on a wide variety of cultural topics across North America at universities, high schools, churches, and other functions. Some of these topics include abortion, pornography, the Sexual Revolution, and euthanasia. Jonathon holds a Bachelor of Arts Degree in history from Simon Fraser University, and is the communications director for the Canadian Centre for Bio-Ethical Reform.

Jonathon’s first book, The Culture War, was released in 2016

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Censorship Industrial Complex

Desperate Liberals move to stop MPs from calling Trudeau ‘corrupt’

Published on

From LifeSiteNews

By Clare Marie Merkowsky

Conservative MP Corey Tochor argued the term “corrupt” is an accurate description of Trudeau and his government.   

“If you ask the Ethics Commissioner about all of the infractions that the Prime Minister has been charged and convicted with on corruption, you will find the truth to be that this is a corrupt government and Prime Minister”

Liberals are pushing for the word “corrupt” to be banned in Parliament amid ongoing ethics scandals within the Trudeau government.  

On April 19, Liberal Member of Parliament (MP) Mark Gerretsen moved to prohibit MPs from referring to Prime Minister Justin Trudeau and his government as “corrupt,” arguing it is disrespectful towards the Liberal government.  

“My point is that, today, during question period, the member for Regina—Wascana referred to the Prime Minister as ‘corrupt’ and to the government as ‘corrupt,’” he told the House of Commons.  

“Although he did it today, it has been done a number of times in the House,” he continued. “I would say that terminology specifically goes against Standing Order 18.” 

The House of Commons’ Standing Order 18 regulates speech within the House to ensure that MPs do not use disrespectful or offensive language.  

“No member shall speak disrespectfully of the Sovereign, nor of any of the royal family, nor of the Governor General or the person administering the Government of Canada; nor use offensive words against either House, or against any member thereof,” it states. “No member may reflect upon any vote of the House, except for the purpose of moving that such vote be rescinded.”  

“I would encourage the Chair, during this time of reflection over that week that he indicated he was going to do that, to consider my comment on this and to weigh into whether or not this is actually,” Gerretsen added before being interrupted by Conservative MPs calling for a debate. 

However, Gerretsen refused to debate his suggestion, instead pushing for Conservatives to be censored. Gerretsen’s recommendation was supported by Bloc Quebecois MP Martin Champoux.  

“I would like to build on what my colleague just said,” Champoux said. “I actually raised a point of order about this yesterday with the Speaker, who was in the chair at the time, to ask him to once again set out strict rules and clear guidelines for members to follow.” 

“That would help us to better understand how far we can go,” he argued. “Right now and for the past few months, there has been a lack of consistency in the way freedom of expression is interpreted in the House and in the way measures are applied when members cross the line or do not follow the guidelines, which, again, are not exactly clear.” 

However, Conservative MP Corey Tochor argued the term “corrupt” is an accurate description of Trudeau and his government.   

“If you ask the Ethics Commissioner about all of the infractions that the Prime Minister has been charged and convicted with on corruption, you will find the truth to be that this is a corrupt government and Prime Minister,” he declared.  

Indeed, between the ArriveCAN app scandal, alleged Chinese election meddling and the SNC-Lavalin affair, Canadian MPs seem well within their rights to call, or at least remain concerned, that Trudeau and his government are “corrupt.” 

So, why are Liberals moving to have the term banned? 

It appears Trudeau and his government prefer Canadians remain unaware of past and ongoing corruption scandals, preferring to silence those who remain unconvinced by Liberal Party propaganda.  

Unfortunately, it seems this trend is only going to continue.

As LifeSiteNews recently reported, law professor Dr. Michael Geist warned that the Trudeau government is “ready” to “gaslight” opponents of Bill C-63, a proposed law that could lead to jail time for vaguely defined online “hate speech” infractions.  

While the banning of the word “corrupt” in Parliament may not yet be implemented, who is to say that if Bill C-63 is passed that the Trudeau government won’t decide to consider such accusations of corruption as meeting the definition of online “hate speech.”

Indeed, perhaps the Liberals’ move to ban the word “corrupt” should be considered a sign that they know they’ve lost the public’s trust and are acutely aware silencing opposition is their only option.

In fact, it would appear that Trudeau’s only response to dismal polling figures with respect to his scandal-plagued government’s popularity is to double down on censorship, rather than consider why citizens feel the way they do.

As the late U.S. President Harry S. Truman warned: “Once a government is committed to the principle of silencing the voice of opposition, it has only one way to go, and that is down the path of increasingly repressive measures, until it becomes a source of terror to all its citizens and creates a country where everyone lives in fear.” 

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