Opinion
Budget 2019 – Don’t spend your new Canada Training Credit just yet
On March 19, 2019, the federal government tabled its election-year budget. One of the new provisions is a refundable credit called the Canada Training Credit. However, the $250 credit won’t even be available until you file your 2020 income tax return in April of 2021.
Further, if you are born in 1995 or later, you won’t qualify yet. If you were born in 1954 or earlier, you would never be eligible.
In addition, the maximum benefit you can receive is $5,000 in a lifetime (which will take 20 years to get at $250 a year) and the benefit can only be used to a maximum of 50% of eligible tuition costs.
So let’s consider the following scenario:
It is 2019 – you are 25 years of age making $27,000 a year and file your taxes every year.
You decide to take advantage of this credit and enroll in your first semester of schooling in the fall of 2023.
According to Statistics Canada, the average Canadian undergraduate pays $3,419 per semester.
So, you take time off work to go to school full-time in the fall, thus reducing your income by 1/3 in the year to $18,000.
Under the current 2019 rules, you would only have $39 in federal income tax. This amount is low because the tuition credits reduce your taxes.
By 2023, you have built up a “pool” of $250 per year after you turned 26, and believe you have a $1,000 pool available for that year.
When you file your 2023 return the $1,000 is triggered as a refundable tax credit. But you won’t be getting $961 back ($1,000 – 39).
Here’s the catch:
The $1,000 pool reduces the amount you can claim for tuition credits as well, which changes the tax owing to $189 Federal income tax. Meaning the $1,000 pool that you waited for is reduced by 15% by the time you pay it out.
Cash in jeans: $811.
But what if the course you decided to go into begins in January of 2023? You go for the January-April semester, work from May-August, and attend school September-December.
Using the same $27,000 – your income is now reduced by 2/3 while attending full time. Your income is only $9,000 as a result of the May-August period.
Your tuition (possibly paid through student loans) is $6,838 for the year.
Your tax is now zero because even before tuition credits you are below the Basic Personal Amount in your earnings.
Does this mean you get the full $1,000?
No.
Because your income is less than $10,000 in 2023, you don’t get the $250 for that year. As such, you only get $750, and your tuition credits available for carryforward are reduced by $750 as well, thus having a future negative impact on tax of $112.50.
Net result: $637.50 cash in jeans
What if you are a parent that decides to stay home with the kids until they are in school full time and go back to school in 2023?
Unfortunately, because you did not make more than $10,000 a year in any of the years, you get zero.
What if you were laid off, collecting regular EI benefits, and decide to go back to school?
Regular EI Benefits don’t qualify for the $10,000 income calculation. As a result, unless you had special EI benefits like parental leave or earned income from another source greater than $10,000, you don’t qualify.
What if you were self-employed through a small business corporation and paid yourself dividends instead of wages and then decided to upgrade your training?
Your dividend income does not qualify, and so you are not eligible for amounts to be added to the pool.
So assuming you qualify, and you wait the four years to build up a pool of $1,000 (remember that the $1,000 is only a net $850 because of the reduction in tuition credits). That same Statistics Canada report says that tuition is increasing at 3.3% per year. That means by you waiting four years so you can get the Net $850 means your annual tuition has likely increased from $6,838 to $7,786 ($948).
You waited four years, and the tax amount you receive won’t even cover the inflationary price increase on tuition.
In Conclusion
- Those that do qualify won’t see anything until April 2021; the actual net amount of what they will see is only $212.50; and their annual tuition will likely have increased by $225.65.
- Students under the age of 25 will see nothing;
- People over the age of 25 that don’t have more than $10,000 of income will see nothing;
- Seniors will see nothing;
- Parents looking to re-enter the workforce will see nothing; and
- People who have been laid off and have less than $10,000 of non-EI income will see nothing.
Seems like a lot of complex legislation for nothing.
—
Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html
A new Statistics Canada report reveals widening income inequality and a shrinking middle class, all while Trudeau’s Liberals push policies that benefit the wealthy and punish working Canadians.
A newly released report from Statistics Canada on household economic accounts for the third quarter of 2024 confirms what many Canadians have long suspected—while the wealthiest continue to rake in profits, middle- and lower-income families are left struggling under the weight of economic policies that seem designed to work against them. The report, released today, paints a stark picture of a country where financial inequality is not just persisting, but growing.
The numbers don’t lie. Income inequality has increased, with the top 40% of earners pulling even further ahead of the bottom 40%. The gap in disposable income between these two groups expanded to 46.9 percentage points, up from 46.3 just a year ago. The highest-income households saw their disposable income rise by 6.8%, largely driven by soaring investment gains, while the poorest Canadians saw only a 3.7% increase, barely enough to keep up with the cost of living. Meanwhile, middle-income earners experienced sluggish wage growth of just 2.7%, well below the national average.
Despite declining interest rates, lower-income households found themselves paying more on mortgages and consumer credit, while the wealthy reaped the benefits of higher investment yields. The data shows that middle-income households, who are already feeling the squeeze from inflation and stagnating wages, saw their share of national income shrink.
The most revealing statistic is in net worth distribution. The top 20% of wealthiest Canadians control nearly two-thirds (64.7%) of the country’s net worth, averaging an eye-watering $3.3 million per household. Meanwhile, the bottom 40% hold just 3.3%, barely scraping by with an average of $83,189 in assets.
However, the real estate market has provided a rare silver lining for some lower-wealth households, as they were able to take advantage of slightly more favorable conditions to buy homes, increasing their net worth at the fastest pace. But even that gain is tempered by the reality that housing costs remain unaffordable for many, and young Canadians under 35 continue to pull back from homeownership altogether.
Let’s be clear—this isn’t happening by accident. This is what happens when you let a government of self-serving narcissists run the country into the ground. Justin Trudeau and his Liberal Party have spent nearly a decade dismantling the Canadian economy, pushing a radical, ideologically driven agenda that benefits their elite donor class while leaving working Canadians behind. And now, as the country crumbles under the weight of their incompetence, Trudeau is running for the exits, leaving the mess to whoever’s foolish enough to take the job.
And what do they do on the way out? Do they work to secure our economy? To make life more affordable? To protect Canadian workers? No. Instead, they decide to pick a fight with the United States. Donald Trump, who actually puts his country first—imagine that—announces a 25% tariff on Canadian imports, a move meant to address drug trafficking and illegal immigration, and what’s the Liberals’ response? Do they try to work out a deal? Do they negotiate in good faith to protect Canadian jobs? No. Instead, Chrystia Freeland comes out swinging, proposing retaliatory tariffs that will hurt Canadian businesses just as much, if not more, than they’ll hurt the U.S.
This isn’t about protecting Canada. This isn’t about securing the border or fighting for our economy. This is about pure, partisan politics. The Liberal base wants conflict with the U.S. Not because it’s good for the country, but because their fragile, self-righteous worldview depends on it. They hate Trump, and they hate that his America-First policies are actually working for American workers. So instead of finding a solution, they escalate. They antagonize. Because their base loves it. Not because Canada benefits, but because Liberals benefit.
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And meanwhile, what’s Jagmeet Singh doing? The man who loves to talk about standing up for the working class? He could pull the plug on this corrupt government today with a non-confidence motion. But he won’t. Because, like every other member of the political elite in this country, he’s more interested in protecting his own position than actually doing his job. He makes noise about fighting for Canadian workers, but when the moment comes to act, he folds—again.
So here we are. The economy is in shambles. The wealth gap is growing. The middle class is getting squeezed to death. And the people in charge are too busy playing partisan games to do anything about it. Trudeau is leaving, but his legacy of economic destruction, division, and incompetence will live on through the same out-of-touch Liberal elites who put us in this mess.
But here’s the thing—Canada is better than this. We are a nation built on hard work, freedom, and opportunity, not on government control, reckless spending, and endless excuses. We are a country that thrives when its people—not bureaucrats in Ottawa—decide their own future.
It’s time for Canadians to take their country back. It’s time to put an end to this cycle of economic ruin and government failure. We don’t need more empty promises, more excuses, or more Liberal arrogance. We need an election. We need leaders who believe in the strength of Canadians, not the power of government.
Enough is enough. If we want a future where hard work is rewarded, where families can afford to buy a home, and where our economy is built to benefit all Canadians—not just the elite—then we must act. This country belongs to you, not the Liberal Party, not the special interests, and certainly not the self-serving political class in Ottawa.
Canada deserves better. And the time to demand it is now.
From the Brownstone Institute
Information disorder is a term coined in 2017 in a report titled “Information Disorder Toward an interdisciplinary framework for research and policymaking” that was drafted for the Council of Europe. (Derakhshan & Hossein, 2017). Information disorder refers to the sharing or developing of false information, categorized as misinformation, disinformation, and malinformation. Of interest, the original 2016 election of President Trump triggered the commission of this report.
From the report:
This concept has been further developed by think tanks, academics, NGOs, governments, and others now invested in the vast fact-checking and industrial-censorship complex. We have all become well-versed in these concepts over the past few years.
A 2020 peer-reviewed study took this concept further and made information disorder into a mental health condition.
Abstract:
Many of us may be unknowingly suffering from information disorder syndrome. It is more prevalent due to the digitized world where the information flows to every individual’s phone, tablet and computer in no time. Information disorder syndrome is the sharing or developing of false information with or without the intent of harming and they are categorized as misinformation, disinformation and malinformation.
The severity of the syndrome is categorized into three grades. Grade 1 is a milder form in which the individual shares false information without the intent of harming others. Grade 2 is a moderate form in which the individual develops and shares false information with the intent of making money and political gain, but not with the intent of harming people. Grade 3 is a severe form in which the individual develops and shares false information with the intent of harming others.
The management of this disorder requires the management of false information, which is rumor surveillance, targeted messaging and community engagement.
Repeated sufferers at the Grade 1 level, all sufferers from Grade 2 and 3 levels need psycho-social counseling and sometimes require strong regulations and enforcement to control such information disorder.
The most critical intervention is to be mindful of the fact that not all posts in social media and news are real, and need to be interpreted carefully.
From this paper, the idea of “information disorder syndrome” quickly jumped into the lexicon of both the censorship-industrial complex and the mental health industry. It is important to note that the terms syndrome, disease, and mental disorders are often used interchangeably. In this case, it has been determined by organizations such as First Draft and the Aspen Institute that the way to cure this syndrome is to stop the flow of misinformation, disinformation, and malinformation online.
Is it just a matter of time before the American Psychiatric Association puts this new “syndrome” into the next edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM)?
Is this a possibility?
The American Psychological Association is at least considering how to fit “information disorder” or even “information disorder syndrome” into their modalities. The APA has developed a consensus statement report on fighting health misinformation, which we taxpayers paid for. The CDC paid the APA $2 million for this project.
Next up will be the National Institute of Mental Health (NIMH) developing a funding program to research how to cure or manage this new mental health disorder; considered a new syndrome because of the pernicious tendrils of the internet.
As information disorder syndrome is not a formally recognized mental health condition yet, so far, specific NIMH funding has been absent. However, suppose information disorder syndrome continues to evolve by the medical establishment into a mental health condition. In that case, it is conceivable that NIMH could support studies in the future, particularly for the “sufferers from grade 2 and 3 levels who need psycho-social counseling and sometimes require strong regulations and enforcement to control such information disorder.”
This is yet another example of how the government can and has previously exerted control over individuals. What happens when the APA stigmatizes people who have contrarian views or lifestyles or posts mis, dis or mal-information repeatedly online? The APA has a long history of discriminating and labeling categories of people who differ from the norm, such as when being gay became a mental health disorder in the 1950s.
This lasted for decades, and the APA endorsed many medical treatments such as surgical interventions, including castrations, vasectomies, hysterectomies, and lobotomies, drug therapies (including aversion therapy, which included inducing nausea, vomiting, or paralysis when exposed to same-sex erotic images or thoughts) and even chemical castration, sexual depressants and stimulants, LSD, estrogen and testosterone and also electroconvulsive therapy—which involved administering electric shocks to patients.
Taking this back to the topic at hand, making information disorder a syndrome affecting the individual allows the state through the medical and insurance industries to step in and force the individual to conform to societal norms. As shown in the example above, this is within the realm of possibilities.
Is this a future that is going to happen? Who knows, but it could. And we have to be prepared for this future manifesting in various planning stages. This is why terms such as “information disorder” and “information disorder syndrome” are being propagated throughout new media and must be rejected at all levels.
”Free speech is the most pragmatic tool we have for ascertaining truth. Only by examining all sides of an issue can the truth be chiseled out like a statue out of marble. But the underlying reality is that there can be many truths; we each have our own experiences, values, mores, and life. That is the beauty and wonder of being an individual. There can be no free speech without free and open access to ideas, knowledge, truths, and untruths. Without free speech, we are little more than slaves.
We must defend all speech—whether untrue, hateful, or intolerable, as that is the only way to protect our rights and abilities to understand the world. As soon as free speech is restricted, that restriction will be used to sway public opinion. As soon as one person can be defined as a heretic for uttering words, then soon everyone opposing the “officially approved” side of an issue will be labeled as a heretic. The next logical step will be for the state to define acts of heresy as criminal offenses. As soon as governments and those in power can sway public opinion by restricting free speech, democracy and even our republic of United States will be lost.”
Republished from the author’s Substack
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