POLICY – LIBERAL PARTY OF CANADA – MIDDLE CLASS,

JOBS, TAXATION AND POVERTY

BY: PAUL YOUNG, CPA, CGA

DATE: FEBRUARY 17, 2017

OVERVIEW

• Liberal Party of Canada constantly makes the following statements• “We will support the middle class”

• “We are reducing childhood poverty”

• “We are creating good paying jobs

• “We are balancing the environment with the economic growth

• This presentation will illustrate facts that support the Liberals policies may have not achieved the desire results in terms of new jobs as well as reducing either poverty rates or income inequality.

AGENDA

• Who are the middle class in Canada

• Middle Class Tax Cut

• Middle class taxes

• Poverty / Income inequality

MIDDLE CLASS IN CANADA

• Source – Stats Canada, Globe and Mail, Global TV

Gross Income

Gross Wages

Comments• Only 60,000 new full-time jobs in 2016• New era of more job churning• How is 154,000 new part-time jobs growing the

middle class?

MIDDLE CLASS TAX CUT

Source – Stats Canada, Toronto Sun

Comment• Higher taxes can lead to a brain drain• Taxes are based on income levels

• Wealthiest first 90K is taxed at 20.5%

Source – Global TV and Fraser Institute

Comment• Low to middle class benefited from the tax cuts• Retail Sales have increased since 2009• TFSA utilization benefited all income classes• Economy expanded included new FDI

MIDDLE CLASS TAXES

• Source – Stats Canada , Tax –services , Taxtips.ca, KPMG, Global TV and Globe and Mail

Tax Credits Eliminated• Income below 45,916 will not see tax

decrease, but hike through higher payroll taxes

• Income from 45,917 to 91,831 will see tax savings wipe out by CPP hike

• Hiking tax on the high income earners could see a brain drain

POVERTY / INCOME INEQUALITY

Source – Huffington Post

Comments:• The family tax benefit

• LPC plan is only $8/month better than CPC• LPC Plan is not indexed

• Middle class has been under attack around the world• Canada has one of the wealthiest middle class

• For each $1B in exports there are 5,500 jobs• You cannot tax people to prosperity• Many new Canadians struggle with barriers

• Language• Credentials

• New government policies carbon tax• Carbon taxes will pass on the cost to consumers

• Canada is resource based economy • Goods producing lost 71,000 jobs in 2016

• Federal Government of Canada

T he government-wide lapse of $9.7 billion in fiscal 2016 represents about 3.8 per cent of the available funds authorized in one way or another by Parliament.The percentage of lapsed funds peaked in 2010-11 at more than 10 per cent but dropped to 3.9 per cent by fiscal 2015, the final full year for the Harper government.

Justin Trudeau / Lapsing Funds

Source - CBC

Source – Financial Post

OTHER SOURCES

• Deficits

• http://www.slideshare.net/paulyoungcga/government-deficit-and-debt-canada-november-2016-analysis

• Canada 2016 – performance – • http://www.slideshare.net/paulyoungcga/canadas-building-permits-continue-to-struggle-for-december-2016

• http://www.slideshare.net/paulyoungcga/how-did-canada-performed-in-2016

• http://www.slideshare.net/paulyoungcga/prime-minister-stephen-harper-fiscal-management

• http://www.slideshare.net/paulyoungcga/fiscal-monitor-financial-performance-for-canada-3q16-september-2016