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 Justice Centre for Constitutional Freedoms has released a new report titled Manufacturing consent: Government behavioural engineering of Canadians, authored by veteran journalist and researcher Nigel Hannaford. The report warns that the federal government has embedded behavioural science tactics in its operations in order to shape Canadians’ beliefs, emotions, and behaviours—without transparency, debate, or consent.
The report details how the Impact and Innovation Unit (IIU) in Ottawa is increasingly using sophisticated behavioural psychology, such as “nudge theory,” and other message-testing tools to influence the behaviour of Canadians.
Modelled after the United Kingdom’s Behavioural Insights Team, the IIU was originally presented as an innocuous “innovation hub.” In practice, the report argues, it has become a mechanism for engineering public opinion to support government priorities.
With the arrival of Covid, the report explains, the IIU’s role expanded dramatically. Internal government documents reveal how the IIU worked alongside the Public Health Agency of Canada to test and design a national communications strategy aimed at increasing compliance with federal vaccination and other public health directives.
Among these strategies, the government tested fictitious news reports on thousands of Canadians to see how different emotional triggers would help reduce public anxiety about emerging reports of adverse events following immunization. These tactics were designed to help achieve at least 70 percent vaccination uptake, the target officials associated with reaching “herd immunity.”
IIU techniques included emotional framing—using fear, reassurance, or urgency to influence compliance with policies such as lockdowns, mask mandates, and vaccine requirements. The government also used message manipulation by emphasizing or omitting details to shape how Canadians interpreted adverse events after taking the Covid vaccine to make them appear less serious.
The report further explains that the government adopted its core vaccine message—“safe and effective”—before conclusive clinical or real-world data even existed. The government then continued promoting that message despite early reports of adverse reactions to the injections.
Government reliance on behavioural science tactics—tools designed to steer people’s emotions and decisions without open discussion—ultimately substituted genuine public debate with subtle behavioural conditioning, making these practices undemocratic. Instead of understanding the science first, the government focused primarily on persuading Canadians to accept its narrative. In response to these findings, the Justice Centre is calling for immediate safeguards to protect Canadians from covert psychological manipulation by their own government.
The report urges:
Report author Mr. Hannaford said, “No democratic government should run psychological operations on its own citizens without oversight. If behavioural science is being used to influence public attitudes, then elected representatives—not unelected strategists—must set the boundaries.”
Two major new studies have been published sounding the alarm about the COVID-19 shots potentially carrying risks of not only respiratory diseases but even kidney injury.
The Washington Stand first drew attention to the studies, published in the International Journal of Infectious Diseases (IJID) and International Journal of Medical Science (IJMS), respectively.
The first examined insurance claims and vaccination records for the entire population of South Korea, filtering out cases of infection prior to the start of the outbreak for a pool of more than 39 million people. It reported that the COVID shots correlated with mixed impacts on other respiratory conditions. A “temporary decline followed by a resurgence of URI [upper respiratory infections] and common cold was observed during and after the COVID-19 pandemic,” it concluded. “In the Post-pandemic period (January 2023–September 2024), the risk of URI and common cold increased with higher COVID-19 vaccine doses,” it noted.
Children in particular, who are known to face the lowest risk from COVID itself, had dramatically higher odds of adverse events the more shots they took. Receiving four or more was associated with 559% higher likelihood of cold, 91% higher likelihood of pneumonia, 83% higher likelihood of URI, and 35% higher likelihood of tuberculosis.
The second study examined records of 2.9 million American adults, half of whom received at least one COVID shot and half of whom did not.
“COVID-19 vaccination was associated with a higher risk of subsequent renal dysfunction, including AKI [acute kidney injury] and dialysis treatment,” it found, citing 15,809 cases versus 11,081. “The cumulative incidence of renal dysfunction was significantly higher in vaccinated than in unvaccinated patients […] At the one-year follow-up, the number of deaths among vaccinated individuals was 7,693, while the number of deaths among unvaccinated individuals was 7,364.” Notably, the study did not find a difference in the “type of COVID-19 vaccine administered.”
The researchers note that this is not simply a matter of correlation, but that a causal mechanism for such results has already been indicated.
“Prior studies have indicated that COVID-19 vaccines can damage several tissues,” they explain.
“The main pathophysiological mechanism of COVID-19 vaccine-related complications involve vascular disruption. COVID-19 vaccination can induce inflammation through interleukins and the nod-like receptor family pyrin domain-containing 3, an inflammatory biomarker. In another study, thrombosis episodes were observed in patients who received different COVID-19 vaccines. Additionally, mRNA COVID-19 vaccines have been associated with the development of myocarditis and related complications […] The development of renal dysfunction can be affected by several biochemical factors [26]. In turn, AKI can increase systemic inflammation and impair the vasculature and red blood cell aggregation. Given that the mechanism underlying COVID-19 vaccine-related complications corresponds to the pathophysiology of kidney disease, we hypothesized that COVID-19 vaccination may cause renal dysfunction, which was supported by the results of this study.”
Launched in the final year of President Donald Trump’s first term in response to COVID-19, Operation Warp Speed (OWS) had the COVID shots ready for use in a fraction of the time any previous vaccine had ever been developed and tested. As LifeSiteNews has extensively covered, a body of evidence steadily accumulated over the following years that they failed to prevent transmission and, more importantly, carried severe risks of their own. COVID was a sticking point for many in Trump’s base, yet he doggedly refused to disavow OWS.
Since leaving office, Trump repeatedly promoted the shots as “one of the greatest achievements of mankind.” The negative reception to such comments got him to drop the subject for a while, but in July 2022, he complained that “we did so much in terms of therapeutics and a word that I’m not allowed to mention. But I’m still proud of that word, because we did that in nine months, and it was supposed to take five years to 12 years. Nobody else could have done it. But I’m not mentioning it in front of my people.”
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 activist, Robert F. Kennedy Jr. Most recently, the administration has settled on leaving the current vaccines optional but not supporting work to develop successors.
In early August, Kennedy announced the government would be “winding down” almost $500 million worth of mRNA vaccine projects and rejecting future exploration of the technology in favor of more conventional vaccines. Last week, HHS revoked emergency use authorizations (EUA) for the COVID shots, which were used to justify the long-since-rescinded mandates and sidestep other procedural hurdles, and in its place issued “marketing authorization” for those who meet a minimum risk threshold for the following mRNA vaccines: Moderna (6+ months), Pfizer (5+), and Novavax (12+).
“These vaccines are available for all patients who choose them after consulting with their doctors,” Kennedy said, making good on his pledge to “end COVID vaccine mandates, keep vaccines available to people who want them, especially the vulnerable, demand placebo-controlled trials from companies,” and “end the emergency.”
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