Here is my latest work on low income and poverty

1. Canada and Anti-Poverty
By: Paul Young, CPA, CGA
Date: September 2, 2020

2. Paul Young - Bio
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Advance Technology and Market
Entry
• SME – Supply Chain Management
• SME – Business Strategy and
Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. Summary
• Governments around the world have tried to get rid of
poverty but have failed
• Poverty levels vary year to year due to many factors,
economic opportunities
• Liberals ran on a campaign they would lift 315,000 out
of poverty -
https://www.liberal.ca/realchange/fighting-poverty/
• “There is likely to be a reduction of children living
in poverty at the end of this year, potentially by
300,000, but Macdonald said maybe about one-
quarter that number, or 75,000, can be chalked up
to the child benefit. That smaller decline isn’t
something to be dismissed, but it isn’t the
sweeping change of 300,000 fewer children living
in poverty — or a 40 per cent cut — that Trudeau
touted.”
http://www.news1130.com/2017/07/27/baloney-
meter-how-deep-does-the-canada-child-benefit-
cut-child-poverty-rates/

4. Agenda
• What is poverty?
• Low income based on T1 Filings
• What is the bread-basket calculation?
• Household Spending
• Liberal Party and Poverty
• Conservative Party of Canada – Taxation Policies
• Liberal Party of Canada – Family Benefits
• Poverty Rates
• % of low income Canadians
• Wages and employment
• Income inequality
• Trudeau and Low Income
• Blog – Poverty
• Blog#2 - Poverty
• Summary

5. What is Poverty?
• Poverty is about not having enough money to meet basic needs including food, clothing and
shelter. However, poverty is more, much more than just not having enough money.
• The World Bank Organization describes poverty in this way:
• “Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a
doctor. Poverty is not having access to school and not knowing how to read. Poverty is not
having a job, is fear for the future, living one day at a time.
• Poverty has many faces, changing from place to place and across time, and has been
described in many ways. Most often, poverty is a situation people want to escape. So
poverty is a call to action -- for the poor and the wealthy alike -- a call to change the world
so that many more may have enough to eat, adequate shelter, access to education and
health, protection from violence, and a voice in what happens in their communities.”
Source:
http://www2.gnb.ca/content/gnb/en/departments/esic/overview/content/what_is_poverty.ht
ml

6. Low income based on T1 Filings
Source - https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001801

7. Low Income vs Population

8. What is the bread basket calculation?
Source - https://inflationcalculator.ca/cpi-basket/
This is the content of the basket
of goods and services that the
government (Statistics Canada)
uses to generate the Consumer
Price Index (CPI) and inflation
rates. Next to each item you
will see the weight (out of 100)
assigned to it based on the
average Canadian’s spending.
Note that both the content of
the basket and the weight of
each component have both been
updated in 2015. The basket’s
content is updated every 4 years
and the weights are updated
every 2 years.

9. What is household spending?
Source:
http://www.economicsonline.co.uk/Managing_the_economy/Household_spending.
html

10. Household Spending / Canada
Source - Stats Canada - https://www150.statcan.gc.ca/n1/daily-
quotidien/181212/dq181212a-eng.htm or https://www150.statcan.gc.ca/n1/daily-
quotidien/181212/dq181212a-eng.htm

11. % of Low Income Earners – Canada
Source - https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110013501

12. Poverty / Children
Source – Stats Canada and CBC -
https://www.cbc.ca/news/business/statist
ics-canada-income-2017-1.5033796
Stop spinning things unless you prepared to
discuss all angles!
Food bank usage is up
https://www.cbc.ca/news/canada/windsor/fo
od-bank-usage-up-ten-per-cent-from-last-year-
sots-1.4920501
https://www.slideshare.net/paulyoungcga/pov
erty-canada-analysis-and-solutions
One program does not work!
https://nationalpost.com/pmn/news-
pmn/canada-news-pmn/baloney-meter-how-
deep-does-the-canada-child-benefit-cut-child-
poverty-rates
You can buy the LPC lies that is your choice,
but others do not!

13. Liberal Party of Canada / Poverty
Source - https://www.ctvnews.ca/canada/liberals-set-to-unveil-anti-poverty-law-detail-homelessness-
program-1.4163347
The government's strategy sets
reduction targets of 20 per cent
from 2015 levels by 2020 and a
50 per cent drop by 2030.
Social Development Minister
Jean-Yves Duclos is expected to
outline the new law to a group
of anti-poverty activists.
There are also expectations that
Duclos will outline federal
funding to roll out through a new
centerpiece homelessness
program.
• There are systemic issues with housing -
https://www.slideshare.net/paulyoungcga/global-real-estate-market-issues-
and-solutions-october-2018
• Carbon tax is regressive tax which means it hurts low income more than high
income - https://www.futurity.org/poor-families-hardest-hit-by-carbon-tax/
• The problem socialism is you eventually run out of other people’s money -
https://www.slideshare.net/paulyoungcga/failures-of-socialism-106572893
• This statement is more about winning an election than it is about sound policy
• You solved poverty by creating conditions that support good paying jobs.
Liberals policies have driven out FDI -
https://www.slideshare.net/paulyoungcga/what-are-skills-required-to-have-a-
successful-career
• Liberals immigration approach will lead to even more pressure on social
programs and housing -
https://www.slideshare.net/paulyoungcga/immigration-canada-analysis-and-
recommendations
• Guarantee Income programs have been a failure. Countries like Switzerland
decided against them as they do nothing in terms of helping people -
https://www.slideshare.net/paulyoungcga/guarantee-income-canada-and-
ontario-august-2018

14. Conservative Party of Canada
• Tax cuts – Over the past 8+ years the government has gave back $30B to Canadians: http://globalnews.ca/news/1356467/tax-cuts-since-2005-
net-canadians-30b-pbo/.
• You have provinces like Ontario that have introduced health premium tax: http://www.cra-arc.gc.ca/E/pbg/tf/5006-c/5006-c-13e.pdf. People
making from 50K to 72K are paying from $450 to $600 more in taxes. So, how is the health premium tax helping the middle class or low income
Canadians
• Cost of Living – Ontario has increase the price of hydro rates: http://www.thebarrieexaminer.com/2014/11/27/common-sense-reality-check-
needed or http://news.nationalpost.com/full-comment/andrew-coyne-forget-the-liberal-mythology-canadas-middle-class-is-not-struggling
• Income inequality – Income inequality has been going on for the better part of 40 years. The Liberal in the 1990s did nothing on income
inequality: https://www.policyalternatives.ca/newsroom/news-releases/martins-economic-record-marked-increased-income-inequality-no-real-
wage-gains Here is what is said on income tax splitting: http://fullcomment.nationalpost.com/2014/11/05/andrew-coyne-conservatives-tax-
package-with-income-splitting-corrects-inequality/. Justin says he would take the $2B income tax splitting and put it into infrastructure!
• Ontario has introduced the HST. HST now applies to many items that were exempt from PST: http://www.taxtips.ca/salestaxes/sales-tax-rates-
2014.htm. So, how is HST helping the middle class? Additional Links: http://www.bdo.ca/en/Library/Services/Tax/pages/Tax-Factors/2014-
01/Canadian-sales-tax-implications-of-selling-goods-over-the-internet.aspx
• All level governments are looking for more money as such property taxes have increases as well as the potential for new taxes/user fees:
http://www.theglobeandmail.com/report-on-business/economy/economy-lab/kathleen-wynne-left-with-few-options-to-fix-ontarios-revenue-
problem/article19813010

15. Liberal Party of Canada
Source – Liberal Party of Canada and Conference Board
How have the
Liberals reduced
poverty?
• Stats are
showing poverty
is still a big
issue in Canada

16. Liberal Policy – Poverty
Source -
https://www.pressprogress.ca/liberal_government_decides_low_income_children_will_receive_500_less
_than_originally_promised

17. Blog Poverty
• People on poverty in Canada has been a big issue for the past 40+ years. The world economy has slowly shifted manufacturing to
low cost producing countries which has led to more jobs being created in the service sector.
• Many government have tried over the years to cut poverty rates, but have had limited results. The best solution to poverty is a job.
The more you take from other people and give to those that are able body to work the more it hurts the overall economy
https://www.thestar.com/news/gta/2017/03/16/pilot-project-to-introduce-a-basic-income-in-ontario-gets-strong-public-
support.html
• Margaret Thatcher said it best “The problem with socialism is that you run out other people’s money” -
https://www.goodreads.com/quotes/138248-the-problem-with-socialism-is-that-you-eventually-run-out
• In 2015 is when Canadians went to the poll. The ruling government had been in power for close to a decade as such people decided
to vote the government out for the Liberals. The liberals were elected as such are now working on year three of their mandate. The
Liberals mandate included a reduction in poverty - https://www.liberal.ca/realchange/fighting-poverty/. The problem is despite
the many speeches saying poverty levels have come down under the Liberals which is only partly true. Yes, there has been a
reduction, but very little of that has to do with Liberal policies - http://www.ctvnews.ca/politics/fact-check-how-deep-does-the-
canada-child-benefit-cut-child-poverty-rates-1.3521077 key quote” There is likely to be a reduction of children living in poverty at
the end of this year, potentially by 300,000, but Macdonald said maybe about one-quarter that number, or 75,000, can be chalked
up to the child benefit. That smaller decline isn't something to be dismissed, but it isn't the sweeping change of 300,000 fewer
children living in poverty -- or a 40 per cent cut -- that Trudeau touted.
• "I can give you a specific measure of how much baloney it is: Out of the 40 per cent reduction (in poverty rates), it's about 30 per
cent of that," said Macdonald, who has blogged repeatedly about the government's estimates.
• Source - https://www.slideshare.net/paulyoungcga/poverty-in-canada-june-2017-analysis or
https://www.slideshare.net/paulyoungcga/policy-income-inequality-canada
• Summary:
• There is more to be done to reduce poverty rates not just in Canada, but around the world. The problem is that it will take a
combination of policies that support both economic growth and targeted social spending to help those most vulnerable when it
comes to breaking the cycle of poverty.

18. Summary
• Employment has improved, but many jobs are either part-time or job
churning
• Wage growth has hit 20 year low
• New refugees from Syria have had struggles finding jobs
• Housing costs continue to grow at rates faster than GDP, Wages and
inflation
• Inflation is above 2%
• Government has removed tax credits as well as introduced carbon
taxation and hikes to EI and CPP
• Hydro rates are forcing people to choose between food and heat.
• Source – Stats Canada

19. Job Analysis
Source – Stats Canada
• Only 6% of the new jobs created are goods producing sector - https://www.slideshare.net/paulyoungcga/gdp-by-industry-canada-june-
2020
• Housing affordability is at it worst - https://www.huffingtonpost.ca/2018/09/28/housing-affordability-canada-rbc_a_23545103/
• Liberals are trying to create system that forces people to be dependent on government. Finland tried similar system and seen failure
- https://www.slideshare.net/paulyoungcga/basic-income-affordabillity
• Fraser Institute has said CCB programs provides little incentive for people to better themselves -
https://www.fraserinstitute.org/article/prime-minister-trudeau-thinks-canadians-achieve-better-lives-through-government-
dependence

20. Middle Class
• Trudeau’s GDP and Job growth are also not accurate
in terms of health of the economy -
https://www.slideshare.net/paulyoungcga/real-
truth-canada-and-united-states-gdp-january-2018
• Canada is less competitive today than it was when
Harper left office -
https://www.slideshare.net/paulyoungcga/competiti
veness-canada-vs-other-countries-january-2018
• Harper had the best middle class in the world,
right?
https://www.youtube.com/watch?v=yOl37VcG89c
(Trudeau has failed the middle class)
https://www.slideshare.net/paulyoungcga/middle-
class-canada-february-2018
• 80% of the Middle class are paying higher taxes
under the Liberals -
https://globalnews.ca/news/3769136/taxes-middle-
class-liberals/
This video is from a few years
back when CPC were in Power

21. What is income inequality

22. How is income inequality fix
• Distribution of wealth
• Funding to Healthcare
• Funding to Education
• Funding to other social Programs
• Strong Middle Class/Job Creation

23. Wage Growth
• https://www.spencerfernando.com/2017/04/08/trudeau-economy-worst-wage-gains-20-
years/ or https://www.slideshare.net/paulyoungcga/average-wages-and-job-quality-canada
But like Trudeau’s other promises, they’ve turned out to be nothing but lies.
In fact, the Trudeau economy has led to the weakest wage growth in 20 years.
As reported by Bloomberg, average hourly wage increases were up 1.1% year-over-year, which was the lowest increase since 1998. It is also far
below the historical average of 2.7% in the last 10 years.
When looking further into the numbers, things are even worse for permanent workers. They had the lowest wage growth since 1997.
And when it comes to the province-by-province picture, the increase in Ontario was only 0.1% year-over-year, which is the lowest increase ever
recorded.

24. Harper and Poverty
• Tax cuts - https://globalnews.ca/news/1356467/tax-cuts-since-2005-net-
canadians-30b-pbo/ “Another gift to the government in the report was that the
PBO found that in relative terms — lower income Canadians earning between
$12,200 and $23,300 benefited the most, increasing their after-tax income by four
per cent.”
• https://ottawacitizen.com/opinion/columnists/poilievre-harper-not-trudeau-sr-
actually-reduced-poverty “If you do not like those numbers, try Statistics
Canada’s low-income cut-off line (LICO), which measures poverty and inequality
based on the share of income that households must devote to food, clothing and
shelter. When Trudeau left office, the percentage of people living below that line
had increased to 13.7 per cent. In Harper’s last full year in office, it dropped to a
record low of 8.8 per cent. ”

25. Ed Broadbent

26. LPC – Income inequality

27. Blog – Poverty
People on poverty in Canada has been a big issue for the past 40+ years. The world economy has slowly shifted manufacturing to
low cost producing countries which has led to more jobs being created in the service sector.
• Many government have tried over the years to cut poverty rates, but have had limited results. The best solution to poverty is a
job. The more you take from other people and give to those that are able body to work the more it hurts the overall economy
https://www.thestar.com/news/gta/2017/03/16/pilot-project-to-introduce-a-basic-income-in-ontario-gets-strong-public-
support.html
• Margaret Thatcher said it best “The problem with socialism is that you run out other people’s money” -
https://www.goodreads.com/quotes/138248-the-problem-with-socialism-is-that-you-eventually-run-out
• In 2015 is when Canadians went to the poll. The ruling government had been in power for close to a decade as such people
decided to vote the government out for the Liberals. The liberals were elected as such are now working on year three of their
mandate. The Liberals mandate included a reduction in poverty - https://www.liberal.ca/realchange/fighting-poverty/. The
problem is despite the many speeches saying poverty levels have come down under the Liberals which is only partly true. Yes,
there has been a reduction, but very little of that has to do with Liberal policies - http://www.ctvnews.ca/politics/fact-check-
how-deep-does-the-canada-child-benefit-cut-child-poverty-rates-1.3521077 key quote” There is likely to be a reduction of
children living in poverty at the end of this year, potentially by 300,000, but Macdonald said maybe about one-quarter that
number, or 75,000, can be chalked up to the child benefit. That smaller decline isn't something to be dismissed, but it isn't the
sweeping change of 300,000 fewer children living in poverty -- or a 40 per cent cut -- that Trudeau touted.
• "I can give you a specific measure of how much baloney it is: Out of the 40 per cent reduction (in poverty rates), it's about 30 per
cent of that," said Macdonald, who has blogged repeatedly about the government's estimates.
• Summary:
• There is more to be done to reduce poverty rates not just in Canada, but around the world. The problem is that it will take a
combination of policies that support both economic growth and targeted social spending to help those most vulnerable when it
comes to breaking the cycle of poverty.
•
• Source - https://www.slideshare.net/paulyoungcga/poverty-in-canada-june-2017-analysis or
https://www.slideshare.net/paulyoungcga/policy-income-inequality-canada

28. Ontario new Minimum Wage Law and other
reforms
• http://www.recorder.ca/2017/05/18/minimum-wage-hike-worries-chamber
The potential reforms are coming at a time when costs for consumers and the cost of doing
business is high and putting Ontario at a competitive disadvantage,” the chamber’s statement
adds.
“Ontario has experienced slower growth in GDP and job creation than in the past and drastic
reforms to labor and employment run the risk of causing serious damage to the future
prosperity of the province.”
The Ontario chamber is urging Wynne to do an economic impact analysis of the proposed
reforms.

29. Poverty Groups / Child Benefits
• https://www.thestar.com/news/canada/2017/06/12/anti-poverty-
groups-push-trudeau-government-to-boost-child-benefit.html
A national coalition of anti-poverty groups is asking the Trudeau government to
boost the basic amount it provides in child benefits in hopes of cutting child
poverty rates in Canada in half by the end of the decade.
The coalition wants the government to change the rules so those earning less
can keep more of the benefit, and to increase payments with the cost of living,
retroactive to when the new benefit was first introduced last July.

30. Broadbent
• Broadbent – speech to the Finance Committee in 2013:
• https://www.youtube.com/watch?v=KsUlt0bP2yU
•
• Fact 1 – Harper has increased program spending either via the transfers or direct program spending. It is
not Harper’s fault if various provincial governments waste money -
http://www.slideshare.net/paulyoungcga/provincial-transfers-and-program-spending. You do not have to
take my word as you can watch this video - https://www.youtube.com/watch?v=xqLDHQ-iJU8.
• Fact 2 – Harper has done very good on job creation area despite lower world-wide growth. You do not have
to take my word as you can review the Stats Canada results in areas like wage (reported), jobs by industry
(reported), Exports (reported), etc. http://www.slideshare.net/paulyoungcga/economy-lpc-impact or
http://mb.cme-mec.ca/?action=show&lid=XE8MT-GCZX2-KAD9G&comaction=show&cid=3CWP8-FKASM-
JYNFE
• Fact 3 – Where is the discussion on private –vs- public sector? http://www.cfib-
fcei.ca/english/article/7107-wage-watch-2015.html
• Fact 4 – Broadbent supports more moneys for daycare, right? We all know how well the PQ model has work,
right? http://www.nationalpost.com/news/story.html?id=5a5e1555-093f-4959-9395-028c36daadc7&p=2

31. Broadbent
• Fact 5 – Broadbent gives credit to the working class benefit. http://www.cra-arc.gc.ca/bnfts/wtb/menu-eng.html.
So, how come this benefit is not mentioned by either NDP or LPC?
• Fact 6 – Broadbent talks about GIS increases which are now proposed by Mulcair. The issue that Broadbent does not
discuss is other programs like pension splitting. The article also is dated so it does not deal with RRIF or how many
seniors are using TFSA - http://www.carp.ca/2015/04/21/carp-members-welcome-government-action-in-budget-
2015/ FYI – Harper is planning to increase GIS - http://servingbrant.ca/node/48
• Fact 7 – Broadbent wants a new welfare program. It seems to me that Broadbent does not get the purpose of
welfare. Welfare is not design to make people rich, but to help those that most need the support. Ontario has wasted
moneys on gas plants, eHealth, etc. and that money could have went to helping the most vulnerable in Ontario.
http://www.cbc.ca/news/canada/toronto/ehealth-scandal-a-1b-waste-auditor-1.808640
• Fact 8 – Broadbent is all over the stock options issues. Broadbent again does not get it about how small startup use
stock options to as part of luring talent to their organization - http://www.bloomberg.com/news/articles/2015-09-
24/ndp-plan-to-boost-tax-on-stock-options-seen-stunting-canada-tech
• Fact 9 – Tax avoidance was discussed and again since this is dated it does not deal with Harper and his government
going after tax avoidance areas as part of taxation enforce, i.e. tax treaties, transfer pricing, OECD work, etc.
• Fact 10 – increasing the taxes to top 1% never brings in the revenue windfall due to how rich have accountants,
lawyers, etc. that know how to work within the framework of the various countries’ ITA
• Summary:
• I am not surprised by Broadbent as it is all about taxing the rich. It should be noted the information in Broadbent’s
statement are part of the NDP platform. This should tell you that the Broadbent Institute was directly involved with
NDP platform.

32. Justin Trudeau and low income
Source - https://www.fraserinstitute.org/sites/default/files/effect-of-federal-
income-tax-changes-on-families-in-the-bottom-20-percent-of-earners.pdf

33. Liberals Anti-Poverty
1. Child tax benefit never lifted 400,000 kids out of poverty. It may have
reduced child poverty by maybe 25,000 -
https://globalnews.ca/news/3628540/canada-child-benefit-program-
poverty-rates/
2. There is a refugee problem -
https://vancouversun.com/opinion/columnists/analysis-many-syrian-
refugees-still-struggling-after-12-full-months-in-canada. The govt has also
loss count of the Syrians -
https://vancouversun.com/opinion/columnists/douglas-todd-trudeau-
government-goes-silent-on-syrian-refugees
3. Ontario and Quebec are asking for more money to help with the influx
refugees - http://www.rcinet.ca/en/2018/03/22/quebec-bills-federal-
government-for-migrants/ and https://ottawacitizen.com/news/local-
news/reevely-ontarios-refugee-claimant-bill-hits-200m-macleod-testifies-on-
the-hill
4. Liberals are planning to bring in more immigration when the economy is both
sluggish and less competitive -
https://www.slideshare.net/paulyoungcga/government-policy-education-
and-skills-development-canada-april-2018 or
https://www.slideshare.net/paulyoungcga/government-policy-immigration-
canada-november-2017
5. Canada housing market is becoming more and more less affordable -
https://www.slideshare.net/paulyoungcga/housing-social-and-affordable-
housing-canada-90494557
Source – MacLean's – August 21, 2018
https://www.macleans.ca/opinion/is-the-
liberals-federal-poverty-reduction-strategy-really-
a-strategy/

34. Blog – Poverty / Twitter

35. Blog #2 – Poverty
@jyduclos
• What does the graph tell you? It tells you that
@stephenharper also seen a major drop in
poverty with less population growth. You have
more population growth so the 800K+ drop is
very misleading!
https://nationalpost.com/pmn/news-
pmn/canada-news-pmn/baloney-meter-how-
deep-does-the-canada-child-benefit-cut-child-
poverty-rates
•
• https://www.slideshare.net/paulyoungcga/20
19-election-poverty-and-income-inequality-
august-2019
•
• (It is great to see CPC is starting to push back
on stats. FYI – I sent my scorecard to many
different groups including the CPC to call out
the miss leading posts from the Liberals
• @karen_vecchio @ErinOTooleMP

36. Summary
• You fixed poverty several ways
• Strong economy that creates jobs
• Carbon Taxation neither lead to strong economy nor do they create
sustainable jobs.
• Government stop hiking taxes and/or introducing new taxes
• Government looks at better ways to deliver program spending
• Government policies related to hydro rates
• Too much focus on minimum wage hikes. Minimum wage jobs were never
design to be a career.
• Education pushing people to careers that have job openings