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Keep It Simple S…ubsidy

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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

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Alberta

AMA challenged to debate Alberta COVID-19 Review

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Justice Centre for Constitutional Freedoms

Justice Centre President sends an open letter to Dr. Shelley Duggan, President of the Alberta Medical Association

Dear Dr. Duggan,

I write in response to the AMA’s Statement regarding the Final Report of the Alberta Covid Pandemic Data Review Task Force. Although you did not sign your name to the AMA Statement, I assume that you approved of it, and that you agree with its contents.

I hereby request your response to my questions about your AMA Statement.

You assert that this Final Report “advances misinformation.” Can you provide me with one or two examples of this “misinformation”?

Why, specifically, do you see this Final Report as “anti–science and anti–evidence”? Can you provide an example or two?

Considering that you denounced the entire 269-page report as “anti­–science and anti–evidence,” it should be very easy for you to choose from among dozens and dozens of examples.

You assert that the Final Report “speaks against the broadest, and most diligent, international scientific collaboration and consensus in history.”

As a medical doctor, you are no doubt aware of the “consensus” whereby medical authorities in Canada and around the world approved the use of thalidomide for pregnant women in the 1950s and 1960s, resulting in miscarriages and deformed babies. No doubt you are aware that for many centuries the “consensus” amongst scientists was that physicians need not wash their hands before delivering babies, resulting in high death rates among women after giving birth. This “international scientific consensus” was disrupted in the 1850s by a true scientist, Dr. Ignaz Semmelweis, who advocated for hand-washing.

As a medical doctor, you should know that science is not consensus, and that consensus is not science.

It is unfortunate that your AMA Statement appeals to consensus rather than to science. In fact, your AMA Statement is devoid of science, and appeals to nothing other than consensus. A scientific Statement from the AMA would challenge specific assertions in the Final Report, point to inadequate evidence, debunk flawed methodologies, and expose incorrect conclusions. Your Statement does none of the foregoing.

You assert that “science and evidence brought us through [Covid] and saved millions of lives.” Considering your use of the word “millions,” I assume this statement refers to the lockdowns and vaccine mandates imposed by governments and medical establishments around the world, and not the response of the Alberta government alone.

What evidence do you rely on for your assertion that lockdowns saved lives? You are no doubt aware that lockdowns did not stop Covid from spreading to every city, town, village and hamlet, and that lockdowns did not stop Covid from spreading into nursing homes (long-term care facilities) where Covid claimed about 80% of its victims. How, then, did lockdowns save lives? If your assertion about “saving millions of lives” is true, it should be very easy for you to explain how lockdowns saved lives, rather than merely asserting that they did.

Seeing as you are confident that the governments’ response to Covid saved “millions” of lives, have you balanced that vague number against the number of people who died as a result of lockdowns? Have you studied or even considered what harms lockdowns inflicted on people?

If you are confident that lockdowns did more good than harm, on what is your confidence based? Can you provide data to support your position?

As a medical doctor, you are no doubt aware that the mRNA vaccine, introduced and then made mandatory in 2021, did not stop the transmission of Covid. Nor did the mRNA vaccine prevent people from getting sick with Covid, or dying from Covid. Why would it not have sufficed in 2021 to let each individual make her or his own choice about getting injected with the mRNA vaccine? Do you still believe today that mandatory vaccination policies had an actual scientific basis? If yes, what was that basis?

You assert that the Final Report “sows distrust” and “criticizes proven preventive public health measures while advancing fringe approaches.”

When the AMA Statement mentions “proven preventive public health measures,” I assume you are referring to lockdowns. If my assumption is correct, can you explain when, where and how lockdowns were “proven” to be effective, prior to 2020? Or would you agree with me that locking down billions of healthy people across the globe in 2020 was a brand new experiment, never tried before in human history? If it was a brand new experiment, how could it have been previously “proven” effective prior to 2020? Alternatively, if you are asserting that lockdowns and vaccine passports were “proven” effective in the years 2020-2022, what is your evidentiary basis for that assertion?

Your reference to “fringe approaches” is particularly troubling, because it suggests that the majority must be right just because it’s the majority, which is the antithesis of science.

Remember that the first doctors to advocate against the use of thalidomide by pregnant women, along with Dr. Ignaz Semmelweis advocating for hand-washing, were also viewed as “advancing fringe approaches” by those in authority. It would not be difficult to provide dozens, and likely hundreds, of other examples showing that true science is a process of open-minded discovery and honest debate, not a process of dismissing as “fringe” the individuals who challenge the reigning consensus.”

The AMA Statement asserts that the Final Report “makes recommendations for the future that have real potential to cause harm.” Specifically, which of the Final Report’s recommendations have a real potential to cause harm? Can you provide even one example of such a recommendation, and explain the nature of the harm you have in mind?

The AMA Statement asserts that “many colleagues and experts have commented eloquently on the deficiencies and biases [the Final Report] presents.” Could you provide some examples of these eloquent comments? Did any of your colleagues and “experts” point to specific deficiencies in the Final Report, or provide specific examples of bias? Or were these “eloquent” comments limited to innuendo and generalized assertions like those contained in the AMA Statement?

In closing, I invite you to a public, livestreamed debate on the merits of Alberta’s lockdowns and vaccine passports. I would argue for the following: “Be it resolved that lockdowns and vaccine passports imposed on Albertans from 2020 to 2022 did more harm than good,” and you would argue against this resolution.

Seeing as you are a medical doctor who has a much greater knowledge and a much deeper understanding of these issues than I do, I’m sure you will have an easy time defending the Alberta government’s response to Covid.

If you are not available, I would be happy to debate one of your colleagues, or any AMA member.

I request your answers to the questions I have asked of you in this letter.

Further, please let me know if you are willing to debate publicly the merits of lockdowns and vaccine passports, or if one of your colleagues is available to do so.

Yours sincerely,

John Carpay, B.A., LL.B.
President
Justice Centre for Constitutional Freedoms

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Alberta

Alberta health ministry to ‘consider’ report calling for end to COVID shots for healthy kids

Published on

From LifeSiteNews

By Anthony Murdoch

The report recommended halting “the use of COVID-19 vaccines without full disclosure of their potential risks” as well as outright ending their use “for healthy children and teenagers as other jurisdictions have done,” mentioning countries like “Denmark, Sweden, Norway, Finland, and the U.K.”

Alberta’s health minister says she will “consider” the findings of a report published last week which recommends the immediate halt of the COVID shots for healthy children and teenagers. 

In a statement sent to the media, the office of Alberta’s Health Minister Adriana LaGrange said that the provincial government will “review and consider this report and its findings,” while at the same time noting that “no policy decisions have been made in relation to it at this time.” 

The statement came in reference to the Alberta COVID-19 Pandemic Data Review Task Force’s “COVID Pandemic Response” 269-page final report, which was released last Friday. The report, which was commissioned by Premier Danielle Smith, recommended the halting of “the use of COVID-19 vaccines without full disclosure of their potential risks” as well as outright ending their use “for healthy children and teenagers as other jurisdictions have done,” mentioning countries like “Denmark, Sweden, Norway, Finland, and the U.K.” 

LaGrange’s office noted that the report’s findings build on efforts it says the government has already made to “enhance Alberta’s ability to respond to future public emergencies.” 

Among the recommendations of the task force was the call to “[f]urther research to establish the safety and efficacy of COVID-19 vaccines is necessary before widespread use in adults and children,” the establishment of “a website and/or call-in center for the vaccine injured in Alberta” as well as establishing a “mechanism for opting out of federal health policy until provincial due process has been satisfied.” 

The report also noted that “[c]hildren and teenagers have a very low risk of serious illness from COVID-19. COVID-19 vaccines were not designed to halt transmission and there is a lack of reliable data showing that the vaccines protect children from severe COVID-19.”   

It is worth noting that Alberta Health Services (AHS) is still promoting the COVID shots for babies as young as six months old.  

LifeSiteNews has published an extensive amount of research on the dangers of the experimental COVID mRNA jabs, which 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.    

Danielle Smith still silent on report

At the time of publication, Premier Danielle Smith has still not commented on the bombshell report.

Smith’s lack of commentary on the issue comes despite the fact that she was the one who commissioned the report last year, giving the task force a sweeping mandate to investigation her predecessor’s COVID-era mandates and policies.

After assuming her role as premier in late 2022, Smith promptly fired the province’s top doctor, Deena Hinshaw, and the entire AHS board of directors, all of whom oversaw the implementation of COVID mandates.   

Under Smith’s predecessor Jason Kenney, thousands of nurses, doctors, and other healthcare and government workers lost their jobs for choosing to not get the jabs, leading Smith to say – only minutes after being sworn in – that over the past year the “unvaccinated” were the “most discriminated against” group of people in her lifetime.

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