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.
COVID-19
Keep It Simple S…ubsidy
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.
From LifeSiteNews
While Pat King has been labeled as one of the leaders of the Freedom Convoy by the mainstream media, he is largely considered by those who followed the event to be a tertiary actor.
A Canadian judge has found Pat King, a controversial figure connected to the Freedom Convoy, guilty of a total of five charges related to his involvement in the 2022 protests held in the nation’s capital which called for an end to COVID mandates.
An Ottawa judge found King guilty of two counts of disobeying a court order, one count of mischief, one count of counselling others to commit mischief, as well as one count of counselling others to obstruct police.
As reported by the Canadian Press, King was also found not guilty of four other charges, those being three counts of intimidation and one count of obstructing police.
King’s lawyers had argued that his involvement with the Freedom Convoy was peaceful in nature and did not warrant any of the charges laid against him.
Crown lawyers claimed that King was one of the main leaders of the Freedom Convoy who played a key role in the month-long protests that took place in January and February of 2022.
The Crown’s case relied heavily on videos posted to social media, which were shared by King throughout the protests.
While King has been labeled as one of the leaders of the Freedom Convoy by the mainstream media, he is largely considered by those who followed the event to be a tertiary actor.
For instance, True North’s Andrew Lawton, who wrote a book on the Freedom Convoy, wrote in 2022, “the media keeps calling Pat King the ringleader of the convoy, but in reality, organizers told him to get lost when they realized he was toxic.”
In 2022, King was granted bail after spending five months in jail for his involvement with the protests. He had to pay a $25,000 fine and was banned from speaking to other Freedom Convoy members and was placed under curfew.
In February 2022, during the height of the Freedom Convoy, King told protesters to “Hold the line, ladies and gentlemen,” and to “not back down, we got your backs.”
In late February that same year, King was denied bail by a judge. He was arrested on February 18 and was charged with various offenses, including mischief and counseling to commit mischief.
As it stands now, the Freedom Convoy’s actual main leaders, Tamara Lich and Chris Barber, are awaiting their fate in their trial for their involvement in the 2022 protests. As reported by LifeSiteNews, Lich and Barber face a possible 10-year prison sentence for their role in the 2022 Freedom Convoy.
As reported by LifeSiteNews, some protesters charged for participating the Freedom Convoy have seen their charges dropped.
In early 2022, thousands of Canadians from coast to coast came to Ottawa to demand an end to COVID mandates in all forms. Despite the peaceful nature of the protest, Prime Minister Justin Trudeau’s government enacted the Emergencies Act on February 14. Trudeau revoked the EA on February 23.
The EA controversially allowed the government to freeze the bank accounts of protesters, conscript tow truck drivers, and arrest people for participating in assemblies the government deemed illegal.
COVID vaccine mandates, which also came from provincial governments with the support of the federal government, split Canadian society. The mRNA shots have been linked to a multitude of negative and often severe side effects in children.
From LifeSiteNews
Associate Judge Catherine Coughlan rejected a lawsuit from more than 300 past and current members of the Canadian military who lost their jobs or were put on leave for not taking the experimental, dangerous COVID shots.
A Canadian federal judge has thrown out a lawsuit filed on behalf of some 330 past and current members of the nation’s military who lost their jobs or were placed on leave for refusing the experimental COVID shots, because she alleged that their lawsuit lacked “evidence” that the jabs were harmful.
The Canadian Armed Forces (CAF) members had sought some $1.3 million in damages from the government for having their charter rights violated due to the military’s 2021 COVID mandates, according to their lawsuit.
In a November 13 ruling, Edmonton-based Associate Judge Catherine Coughlan ruled in favor of the Trudeau government, and thus military’s COVID jab mandate, to strike down the case. Coughlan remarked that the plaintiffs’ case lacked “material facts” along with “evidence” and was filled with “vexatious language.”
READ: Canadian father files $35 million lawsuit against Pfizer over son’s jab-related death
“The only indications of bad faith are found when the pleadings baldly assert that, among other claims, Canada failed to carry out safety and efficacy testing for the vaccines, and that the Directives were premature and ‘promoted the fraudulent use of the biologics’,” she wrote, overlooking reports of thousands of injuries due to the shots in Canada alone.
As a result of the lawsuit being tossed, all plaintiffs are now on the hook to pay some $5,040 out of pocket in legal costs.
As reported by LifeSiteNews in June, documents obtained by LifeSiteNews show that the number of jab injuries in the CAF rose over 800 percent in 2021, with the most being credited to Moderna’s experimental COVID shot.
The CAF members’ lawsuit was filed in June of 2023 and overall sought some $1 million in damages, along with an extra $350,000 in general damages. The lawsuit also had a condition that there be a declaration made that mandating the COVID shots for military members was a violation of their charter rights.
READ: Israeli boy featured in COVID vaccine campaign dies of heart attack at age 8
LifeSiteNews reported in July that a member of Canada’s military who was injured after taking the experimental mRNA COVID jabs has been denied compensation from the nation’s Veterans Affairs department.
Under the CAF’s mandate, hundreds of military members were fired, or one could say, purged for not getting the COVID shots. This is in addition to the thousands of public servants fired for not agreeing to take the COVID shots.
The CAF eventually ended its COVID mandate in October 2022, which was months after the federal mandate was lifted, but members are still “strongly encouraged” to take the experimental shot.
The federal government under Prime Minister Justin Trudeau announced that its federal COVID shot workplace mandate would be dropped in June 2022, as would the mandate requiring domestic travelers have the shot to board planes and trains.
In November of 2023, a CAF member who spoke to LifeSiteNews under the condition of anonymity observed that the military considers members who refuse the COVID jab “a piece of garbage.”
READ: COVID shots have 200-times higher risk of brain clots than other jabs: new report
In March, LifeSiteNews reported on large personnel losses causing the CAF to consider dropping its remaining requirements altogether.
Although Canada has a Vaccine Injury Support Program (VISP) program, active members of the CAF, as well as veterans, are not eligible for the civilian program. According to Christensen, this leaves many COVID jab-injured CAF members and veterans with no recourse other than Veterans Affairs Canada.
COVID shot mandates, which came from provincial governments with the support of Trudeau’s federal government, split Canadian society. The mRNA shots themselves have been linked to a multitude of negative and often severe side effects, such as heart diseases, stroke, and death, including in children.
The shots also have connections to cell lines derived from aborted babies. As a result, many Catholics and other Christians refused to take them.
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