This document provides an overview and agenda for a presentation on social spending, taxation, and quality of life. The presentation covers topics like social spending rankings by country, education and healthcare spending comparisons, income taxation rates globally, guaranteed income programs, venture capital environments, issues with government spending, recommendations to address income inequality, and productivity comparisons. The goal is to highlight pressures on government spending and identify opportunities to reform tax policies and emphasize value for money in social program delivery.

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Social Spending and
Taxation – Quality of
Life – June 2019
P a u l Yo u n g C PA , C G A
J u n e 1 3 , 2 0 1 9

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Paul Young - Bio
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM/Risk
Analytics)
• 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

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Agenda
• Social spending ranking by country
• Education spending ranking by country
• Healthcare spending ranking by country
• Income Taxation by Country
• Guarantee Income / Finland
• Venture Capital / Best Countries
• Issues with government spending
• Public Spending Sustainability
• Public Sector vs Private Sector Compensation - Canada
• Productivity
• Venture Capital
• Innovation
• Income inequality
• Recommendations
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Introduction
• This presentation looks at social policy
and income inequality as way to
highlight the pressure facing
government spending around the
world.
• Countries around the world need to
reform their tax policies
• Countries around the world need to
emphasize value for money as part of
delivering program spending.
• There needs to be a proper balance
between the environment and the
economy.
• There is middle ground to be achieve
between providing social programs and
the right level of taxation
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Social Spending
Ranking by Country
• Source - https://pressprogress.ca/canadas-
investments-in-social-programs-now-rank-
near-the-bottom-of-the-industrialized-world/
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Education
spending by
Country
Source -
https://www.weforum.org/agen
da/2018/10/these-countries-
spend-the-most-on-education/
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Income
Taxation
by
Country
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Income Taxation / Rates – Federal Rate
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Source - https://www.businessinsider.com/tax-rates-take-home-salaries-40-countries-2018-5
Ranking Country Tax Rate Average After Tax Income
1 Saudi Arabia 0% $21,720
1 India 0% $1,670
3 Switzerland 2% $84,006
4 Indonesia 5% $3,230
5 Brazil 8% $8,177
6 Japan 10% $35,279
6 Romania 10% $8,532
6 Bulgaria 10% $6,822
9 South Korea 12% $25,754
9 China 12% $7,247
11 Mexico 13% $8,537
11 United Kingdom 13% $40,169
18 USA 18% $52,344
31 Canada 28% $35,299
40 Denmark 56% $28,227

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Marginal Tax
Rates
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https://taxfoundation.org/com
parison-tax-burden-labor-
oecd-2018/

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Blog – Low, middle and high income
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• Can you show me where @andrewscheer
supports only the top 1%?
https://www.slideshare.net/paulyoungcga/201
9-election-middle-class-canada-june-2019-
149149542 or
https://www.slideshare.net/paulyoungcga/201
9-election-top-1-wealthiest-canada-june-2019
• FYI
• Top 1% pay over 20% of the income tax and
over 50% income on their income tax -
https://business.financialpost.com/personal-
finance/taxes/canadas-income-tax-rates-
have-become-uncompetitive-and-the-
economy-will-pay-the-price
• The low income benefited under the CPC tax
plans -
https://globalnews.ca/news/1356467/tax-cuts-
since-2005-net-canadians-30b-pbo/

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Healthcare spending
ranking by Country
• Source -
https://www.healthsystemtra
cker.org/chart-
collection/health-spending-
u-s-compare-
countries/#item-average-
wealthy-countries-spend-
half-much-per-person-
health-u-s-spends
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Guarantee Income /
Finland
• Source -
• https://www.reuters.com/ar
ticle/us-finland-basic-
income-
idUSKCN1PX0NM?utm_ca
mpaign=trueAnthem:+Trendi
ng+Content&utm_content=5
c5d4d5b04d3011dd162b83f
&utm_medium=trueAnthem
&utm_source=twitter
•
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Issues with
Government
Spending
• Lack of value for money –
• Too many people think all levels of govt has
unlimited resources to raise moneys -
https://www.vice.com/en_ca/article/a34n54/m
odern-monetary-theory-explained
• All governments need to look activity-based
costing models as part of their cost to serve
model for their various government programs
-
https://www.scirp.org/journal/PaperInformation
.aspx?PaperID=83553
• Auditor-General / Internal audit reports have
been ignored by all levels of government -
https://www.cbc.ca/news/politics/government-
culture-auditor-general-ferguson-1.4685726
• More ongoing audits and performance
measurement reports as part of managing
outcomes and costs, i.e. use of Analytics and
AI.
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Government Spending Unsustainable
• http://business.financialpost.com/news/economy/canadas-
government-spending-is-now-on-unsustainable-path-warns-pbo
Financial Post – June 28, 2016

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Public Sector vs Private Sector Compensation
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• There are big issues with public vs private sector pay. So why did you ignore that issue? https://www.cfib-
fcei.ca/en/advocacy/Ontario-municipal-elections or https://www.slideshare.net/paulyoungcga/canada-public-sector-vs-private-
sector-compensation
• F/F, Police and other municipal workers education requirements tend to be much lower than accountant, HR, marketing, etc.,
right? Yet municipal workers along with other govt workers make more on average, right?
https://www.owensoundsuntimes.com/news/local-news/owen-sound-seeks-change-through-arbitration-aimed-at-reducing-fire-
services-costs or https://www.tvo.org/article/small-towns-cant-afford-independent-policing-but-dont-know-where-to-turn
• Teachers salaries is an issue - https://business.financialpost.com/executive/careers/teachers-should-earn-their-high-pay
• The reality is the public sector needs to bring in compensation reform - https://www.slideshare.net/paulyoungcga/ontario-
economic-and-fiscal-mess
•
• Government does not operate in a competitive environment -
https://msu.edu/course/prr/371/Privatization%20and%20Downsizing/competion.html
• FYI – Do not provide scripts unless they are back up with facts. Your words meaning nothing to me as they are not supported.

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Recommendations
/ Social Policy
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• All governments need to emphasize value for
money when it comes to delivering social programs
• Government needs to look at all of their economic
policies like education, skills development, housing,
getting goods to market, environment and
infrastructure.
• All governments need to implement better costing
models
• All governments need to stopped looking for ways
to tax people and business.

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Outsourcing – Social Programs
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Source - https://www.canadianmanufacturing.com/financing/liberals-set-to-unveil-social-finance-strategy-including-755m-in-new-fund-234147/
he federal government is to unveil its promised strategy today,
planning to use hundreds of millions of dollars in federal funding to
finance new, experimental ways to deliver social services.
Social Development Minister Jean-Yves Duclos is scheduled to
make a mid-day announcement in Montreal.
The Liberals have been crafting a strategy for social finance, as it’s
known, for years, hoping to bring private money into social services
governments provide themselves or directly fund.
Under the concept, private backers partner with a group or
organization to fund new ways of helping people improve their job
skills or health, for instance, with public dollars flowing in if the
partnership produces measurable results.
What makes the approach attractive to governments is that it shifts
financial risk from taxpayers to investors and can turn up more
efficient ways of providing social services.
Finance Minister Bill Morneau’s fall update included $755 million
over 10 years to be seed money for groups that provide services
such as housing the homeless or training hard-to-employ people
with new skills.
The idea is that as loans seeded with federal money are repaid,
local intermediaries could hand out more loans and entice traditional
lenders to open their wallets. And some of the money will come back
to federal coffers.
• Non-profit sector to take on social policy would
need funding either direct from government or via
donations
• Existing government programs can have
performance audits. Who is going to ensure
performance audits are done on 3rd parties to
ensure outcomes are achieved - http://www1.oag-
bvg.gc.ca/internet/methodology/performance-
audit/manual/101.shtm?wbdisable=true
• I support the need to review social policies to
ensure the dollars are properly spent, but
governments of all level have done a poor job of
delivering tax dollars to various programs.
• Private sector will only get involved if there is
money to be made by them and/or they are able
to become self-sustaining units. The problem in
the past the govt has thrown money at the
symptoms.
• The liberals tried something similar with the
infrastructure bank as such all that happen was
liberal supporters got cushy jobs. Little money has
flowed from the infrastructure bank

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Business Related
Issues
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Productivity by Country
19Source - https://collectivehub.com/2018/02/15-of-the-worlds-most-productive-countries/
1. Luxembourg
2. Norway
3. Switzerland
4. Denmark
5. Iceland
6. United States
7. Australia
8. Ireland
9. Netherlands
10. Sweden
11. Germany
12. Finland
13. Canada
14. France
15. Japan

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Venture Capital
• Source -
https://www.usnews.com/ne
ws/best-
countries/slideshows/these-
are-the-technologies-that-
countries-invest-in?slide=11

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Innovation
Ranking
Source -
https://www.wipo.int/publicatio
ns/en/details.jsp?id=4330
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Corporate
Tax Ranking
by Country
Source -
https://taxfoundation.org/public
ations/international-tax-
competitiveness-index/
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Income
Inequality
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What is income inequality

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Mexico Income
Inequality
• Source -
https://www.bloomberg.com
/news/articles/2016-11-
24/chile-mexico-u-s-have-
highest-inequality-rates-
oecd-says

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Should the Wealthiest be taxed more?
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• Hike taxes to 80%
This gal is always a hoot! All she ever does is repeat tax the top 1%.
She then admits that she is upper middle class as such pays 30%.
Tucker asked her to write a check and she deflects by saying she
gives money to Not for Profit.
There has always been issues with delivering of taxation dollars to
social services in efficient and effective manner.
This gal takes every opportunity to swipe @realDonaldTrump . Trump
is not perfect, but he is focusing in wages and jobs.
https://www.bloomberg.com/opinion/articles/2019-01-09/how-
wage-growth-could-continue-as-u-s-economy-slows
USA like many countries needs to reform its tax act as well as closing
tax havens. https://www.thehindu.com/business/us-reacting-to-
beps-with-barriers-to-free-fair-trade/article24505566.ece

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Income Inequality
27Source - https://www.weforum.org/agenda/2018/11/is-income-inequality-rising-around-the-world/

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Rebuttal #1 – Income Inequality
http://thetyee.ca/News/2016/03/08/UN-Tells-Canada-Clean-Up-Inequality/http://thetyee.ca/News/2016/03/08/UN-Tells-Canada-Clean-Up-Inequality/
I am getting tired of the UN pushing their policies. How about going after China/India/other countries that have high poverty levels. Do we have issues?
Yes! Does the new budget address those issues? No
http://www.vancouversun.com/opinion/columnists/cayo+some+forms+inequality+better+some+much+worse/11804872/story.html or
1. Scandinavia vs- Canada - https://www.youtube.com/watch?v=Y2jobYcTsXY
2. Middle Class https://www.youtube.com/watch?v=hoZ96sCQ-sQ
3. Income inequality - https://www.youtube.com/watch?v=TulkPgfR-R0
4. Guarantee Income - https://www.youtube.com/watch?v=0UrgSeNDCPo
http://www.cbc.ca/news/business/tax-changes-inquality-1.4285436
Canada is middle of road when it comes to income inequality: https://www.bloomberg.com/news/articles/2016-11-24/chile-mexico-u-s-have-highest-
inequality-rates-oecd-says
Harper had it right in terms of supporting income issue - http://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/. Consumption
taxes hurt the poor to middle class more than the top 1%.
The top 1% pay close to 20% of the federal income tax - https://www.slideshare.net/paulyoungcga/top-1-wealthiest-income-earners-canada-2013-and-
2014-analysis-and-comments. Liberals continue to think taxing the rich will fixed the issues with income inequality. The problem is that you cannot tax
people to prosperity
The best solution to income inequality is creating the conditions that jobs grow in the goods producing sector or jobs that require advance skills.
https://www.slideshare.net/paulyoungcga/august-2017-canada-employment-market. If Trudeau and his team spent more time on getting projects of the
ground and/or expanding exports then you could see more decent jobs returning to Canada. Trudeau goals seems to want to build a system that has
people dependent on government - https://www.slideshare.net/paulyoungcga/what-is-agenda-2030

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What’s needs
to be done
• Governments need to start focusing on delivering of social welfare via value for money
• Government corruption needs to end
• OECD needs to work with governments around the world to shut down tax havens. Tax
havens starve government treasuries - https://medium.com/@nslewis/tax-havens-
make-gdp-screwy-c241430447d9 - BEPS was good start but more needs to be done to
shut down taxpayers moving funds to tax havens
• Countries around the world need to start focusing on education through proper degree
and apprenticeship programs. Germany model on apprenticing is good model that
could be exported around the globe -
https://www.insidehighered.com/views/2018/03/27/how-adapt-german-apprenticeship-
model-work-best-us
• United Nations needs to clean up its act when it comes to foreign aid. More oversight
and value for money audits to ensure money is getting to the people that need it the
most - https://www.slideshare.net/paulyoungcga/foreign-aid-lack-of-accountability-and-
oversight-december-2018
• Governments around the world need to stop looking at ways to tax. Carbon taxation /
price for carbon hurts the low to middle income more in terms of costs.
• Countries around the world need to fix their various tax codes. There needs to be
simplification to their tax codes.
• Minimum wage hikes need to be tied to inflation
• WTO needs to push emerging markets to liberalized trade practices including labor law
reforms, environmental reforms, removal of subsidies, etc.
• 2030 agenda needs to be stopped. There needs to be more effective way to move
people to rural areas as way to spread out economic development
• Politicians need to stop looking at one off policies when it comes to income inequality.