Here is a look at the different areas that relate to the Cost of Living

1. Cost of Living – Canada –
February 2020
Paul Young CPA CGA
March 30, 2019

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, MU1 and MS2)
• SME – Risk Management
• SME – Emerging Technology
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Cost to Serve modeling
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Consumer Price Index
• Housing Prices
• Carbon Taxation
• Transit (Tax Credits vs Carbon Tax Credit)
• 80% of the Middle Class is paying higher taxes
• The wealthiest are paying less of the federal taxes
• Household Spending
• Child Tax Benefit / After Tax income
• Poverty
• Cell Phones
• Principal Residency / Speculator tax
• Future Gas tax / Carbon Pricing
• Trudeau’s policies are not keeping pace with higher
household costs. Trudeau thinks he can provide a
smoke screen on Child benefit. The average net
benefit for a family is about $1,200 (based on median
income)

4. Introduction
• The liberal ran on a platform saying they would make things more
affordable. This presentation discuss key policy changes as part of
people assessing did the Liberals make lives either more affordable
or less affordable

5. Agenda
• Consumer Price Index – inflation

6. Consumer Price Index
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/200318/dq200318a-eng.htm
• The Liberals pushed a carbon tax onto taxpayers
by adding a carbon tax to price of a liter.
• Inflation on average is about 1.9% which is
consistent with the past 17+ years
• Wage growth has at times not kept pace with
inflation -
https://www.slideshare.net/paulyoungcga/2019-
election-wages-and-inflation-canada-august-2019
• Government does set policies that impact inflation
• Payroll taxes
• Income tax rates
• Regulations
• Hydro rates
• Carbon Tax and fuel tax increases
• https://www.dailywire.com/news/justin-
trudeau-gets-crushed-online-after-suggesting-
canadians-turn-off-lights-tv-for-earth-hour-
amid-coronavirus-quarantine
• There are many factors that impact inflation that
are outside of government control
• Commodity Prices
• Wage increases (Private Sector)
LPC

7. Housing Prices
Who would you trust to make housing more
affordable?
@theJagmeetSingh @JustinTrudeau have
thrown up schemes for housing which will not
fix the issues with affordable housing.
@CPC_HQ has the best option including
reviewing the stress test and 30 yr mortgages
https://www.slideshare.net/paulyoungcga/ho
w-do-you-make-housing-more-affordable
https://business.financialpost.com/real-
estate/toronto-is-now-the-worlds-second-
most-overvalued-property-
market?utm_medium=Social&utm_source=Face
book&fbclid=IwAR3MB4fX_neOy2Ly9-
B9kf3ONW34Qi0CuqGOxI4rMf3CNbISxPBQa3vJ1
nU#Echobox=1569870173 https://www.statista.com/statistics/591782/house-
price-to-income-ratio-canada/

8. Household Costs / Carbon Pricing
How so? The carbon tax would cost people
an extra $1,100 to 1,800 through higher
costs. The tax rebate would be lucky to
cover 10% of the cost. Liberals are lying as
they normally do because they do not
consider the complete past through of the
carbon to consumer goods, household
expenses, etc.
https://www.slideshare.net/paulyoungcga/the
-art-of-taxing-pollution-canada-april-2019
It is the liberals that are dishonest as they
never released their carbon pricing economic
impact, why?
https://capforcanada.com/canadian-
households-to-pay-1100-per-year-in-carbon-
tax/?fbclid=IwAR02rsYH4ht9Gw3ESA0MsI3
4UeLjjnZ6sFW40leAoqVLr0FqY56wFuJgpJc
or
https://www.slideshare.net/paulyoungcga/the
-art-of-taxing-pollution-canada-april-2019
Or
https://www.slideshare.net/paulyoungcga/the
-art-of-taxing-pollution-canada-april-2019

9. Tax Impact I like to know @justintrudeau why he
thinks carbon tax refund $300 is better
than the transit tax credit ($400-675)
under Harper.
You would think the transit tax credit
encourage people to use transit which it
did when you look at ridership
Trudeau said people were no using the
tax credit and/or ridership was not
going up.
http://cutaactu.ca/en/news-
media/latest-news/transit-ridership-
growing-canada “2017 saw a 1.5%
increase in Canadian transit trips
over the previous year, according to
new data released by CUTA. ”
Source - https://globalnews.ca/news/5368001/canada-average-carbon-tax-
rebates/beta/?utm_expid=.kz0UD5JkQOCo6yMqxGqECg.1&utm_referrer=https%3A%2F%2Fwww.google.com%2F
Trudeau cancel the
transit tax and replace it
with carbon rebate, but
then added about 1,100
to each family costs due
to his carbon pricing

10. Liberals voted against a motion to stop rising cost of fuel and
food
Source - https://www.spencerfernando.com/2018/05/08/trudeau-liberals-vote-against-motion-to-lower-gas-grocery-prices/#respond
http://business.financialpost.com/pmn/business-pmn/newsalert-statistics-canada-says-cpi-in-march-up-2-3-from-year-ago-2
• Liberals said they would make things
affordable for Canadians -
https://www.liberal.ca/trudeau-unveils-
liberal-platform-for-a-strong-middle-class/
• 80% of Canadians are paying higher
taxes -
https://globalnews.ca/news/3769136/t
axes-middle-class-liberals/
• Carbon Taxes are regressive as they hurt
the low to middle class more in terms of
costs -
https://twitter.com/LindaFrum/status/
989957835692957696
• CPP hikes mean less after tax income
• https://www.slideshare.net/paulyo
ungcga/2019-election-retirement-
payroll-tax-cpp-canada-august-2019
• Jobs in goods producing sector lag
service sector -
https://www.slideshare.net/paulyoungc
ga/2019-election-job-quality-and-
employment-canada-june-2019
Bottom line:
• Trudeau is not making things more affordable!

11. Wealthiest Who do you trust to more when it comes to
taxing the Top !%
@justinTrudeau who refuses to go after tax
havens and/or loss moneys during his so
called tax hike -
https://www.theglobeandmail.com/politics/
article-high-income-earners-paid-46-billion-
less-in-taxes-in-2016-despite/
@Andrewscheer who was part of a
government that brought in more tax
fairness -
https://globalnews.ca/news/1356467/tax-
cuts-since-2005-net-canadians-30b-pbo/
Top 1%
https://www.slideshare.net/paulyoungcga/t
axing-the-top-1-and-wealth-distribution

12. Wealthiest
@theJagmeetSingh @JustinTrudeau both focus on
the rich, but they are doing in a way that is not
truthful
The top 1% are paying less of the federal tax despite
the Libs increasing the tax rates
You cannot tax someone to prosperity
https://www.slideshare.net/paulyoungcga/taxing-
the-top-1-and-economic-prosperity

13. Household Spending
• Liberals forced a carbon tax which has impacted
household budget, i.e. transit and heating costs -
https://www.slideshare.net/paulyoungcga/carbon
-tax-and-pollution-taxation-all-you-need-to-know-
canada-april-2019
• Liberals claim the CPC policies led to high
consumer debt, but say little about their own
policies -
https://www.huffingtonpost.ca/entry/consumer-
debt-canada_ca_5d5c07d5e4b0d1e113685b39
• Liberals tout their record on jobs, but do never
discuss issues with either a slowing economy
(https://www.slideshare.net/paulyoungcga/2019-
election-gdp-and-economy-canada-june-2019) or
job quality issues
(https://www.slideshare.net/paulyoungcga/real-
truth-about-economy-and-jobs-august-2019)

14. Household Spending (CPC vs LPC)
• Ralph Goodale (circa 2015) – Source - https://www.huffingtonpost.ca/ralph-goodale/mr-harpers-economic-
recor_b_8020980.html “Canadians are stuck with $158-billion in new Harper debt -- without much to show
for it. There are 160,000 more jobless Canadians today than before Stephen Harper took power. Job
quality is at a 25-year low. Household debt is near a record high. Canada's trade deficit this year has
topped $13-billion. (Liberals have the highest household debt now

15. Poverty
• Liberal tout only one policy (Child Tax benefit). The problem is other policies like carbon taxation have had a
large impact on the poor
• Food bank usage continues to be on the rise - http://enfieldweeklypress.com/2019/08/24/food-bank-usage-
at-a-critical-level/
• Low income depend on public transit. Public transit has been impacted by carbon taxation -
https://www.slideshare.net/paulyoungcga/election-2019-transit-canada-june-2019 (Majority of buses and
trains are still supply by diesel

16. Taxation, After Tax Income and Household
Spending

17. Blog – Taxation and After Tax
Who would be better for the middle class?
@justintrudeau who increase taxes on the middle class
https://www.fraserinstitute.org/article/trudeau-government-continues-to-spread-
misinformation-about-middle-class-tax-burden
@andrewscheer who was part of previous governments that led to Canada having one of the
best middle class in the world.
https://www.stcatharinesstandard.ca/opinion-story/9581143-andrew-scheer-in-his-own-
words-young-families-are-the-future-of-our-country-/?fbclid=iwar0tvoaxeqkbsp2ooe-
l7dszpqvetxwpxcfgke5ofmeozh1yrierlxag0ku
https://www.slideshare.net/paulyoungcga/2019-election-middle-class-canada-august-2019

18. Cell Phones CBC
I guess CBC miss the memo from Bell Canada about rates,
right?
https://www.slideshare.net/paulyoungcga/5g-network-and-
telecom-costs-whats-next-for-canada
(see slide 20)
CRTC had started working with companies
https://www.newswire.ca/news-releases/crtc-takes-steps-to-
make-lower-cost-data-only-wireless-plans-widely-
available-to-canadians-702937801.html
Govt already provided funding to Nokia
https://www.canada.ca/en/innovation-science-economic-
development/news/2019/01/government-of-canada-invests-
in-research-and-development-for-technologies-behind-5g-
networks.html
Bell Canada has threatened pull back of investment
https://www.cbc.ca/news/business/bell-canada-internet-
1.5252419
Cell phone Cost – Canada
• Canada market is control 97% by Rogers and Bell
• New players would require capital investment in cell towers
• 25% rate reduction is not realistic due to need to upgrade to 5G or
other investments
• CRTC has forced large telecom companies to charge lower
wholesale rates - https://openmedia.org/en/smaller-internet-
providers-are-dropping-their-prices-and-you-can-thank-crtc-it
• Liberal plan for reduction is unrealistic -
https://www.theglobeandmail.com/business/article-campaign-
plans-to-tackle-wireless-pricing-unrealistic-analysts-say/
Source - https://www.whistleout.ca/CellPhones/Guides/canada-
phone-plan-pricing

19. Gas Taxes / Carbon

20. Speculator Principal Capital Gain Tax
Adam Vaughan tax on principal residency is really call a speculator tax. Here are what people need to know about the speculator
tax:
• There have been many people that buy a condo before it is built. These people put down a down payment. The condo gets
built then these people sell it at the market value. CRA calls these people Condo Flippers “
https://business.financialpost.com/personal-finance/taxes/condo-flippers-beware-the-taxman-is-watching-you-and-has-new-
tools-at-his-disposal-to-take-action
• Starting with 2016 it was mandatory to report your principal residency on your tax return.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-
tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/sale-your-principal-residence.html
• Many properties are held for longer period of times as such this speculator tax would not apply to them. However, there is
nothing stopping another government reviewing the capital gain exemption as part of future tax policies.
• This one-off policy will not fix the issues with supply and demand including urban vs rural strategy.
https://www.slideshare.net/paulyoungcga/2019-election-rural-areas-and-affairs-canada or
https://www.slideshare.net/paulyoungcga/urban-planning-issues-facing-urban-planners-april-2019
• This policy will not fix houses that need major repairs. Many people are not doing the maintenance of their houses as such
future owners could be on the hook for housing improvement costs - https://globalnews.ca/news/3766695/homeownership-
costs-canadians-forget/
•
• Here is my presentation on affordable housing - https://www.slideshare.net/paulyoungcga/2019-election-who-do-you-trust-
more-to-make-housing-more-affordable

21. Training and Development
• If you like to learn
more about trade
and/or other subjects
as part of your
professional learning
and development then
feel free to review my
material on
https://www.udemy.co
m/ (search Paul Young
CPA CGA)
• These subjects address
how to fixed issues
with housing and/or
systemic issues related
to economy including
government policies

22. What’s next
• Removing the carbon tax
• All levels of government need to stop looking for ways to
tax people and start fixing issues with the tax code as well
as finding better ways to deliver government -
https://www.slideshare.net/paulyoungcga/2019-election-
fiscally-responsible-government-canada-september-2019 or
https://www.slideshare.net/paulyoungcga/2019-election-
tax-reforms-and-fairness-canada-september-2019
• Fixing policies that will ensure Canada is more competitive
when it comes to attracting FDI -
https://www.slideshare.net/paulyoungcga/2019-election-
canada-competitivenes-september-2019
• All governments along with the private sector need to fix
the systemic issues with housing -
https://www.slideshare.net/paulyoungcga/2019-election-
housing-affordability-canada-june-2019
• All levels of government along with private sector need to
work together as part of address the skill gap issues -
https://www.slideshare.net/paulyoungcga/2019-election-
human-capital-and-skills-management-canada-september-
2019