Here is my latest work on the cost of living in Canada

1. Cost of Living
in Canada -
October 2020
Paul Young CPA CGA
November 18, 2020

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

3. Agenda
• Consumer Price Index
• Housing Price Index
• Housing Prices
• Household Debt to Income
• Carbon Taxation
• Broadband Costs
• Food Prices
• Transit (Tax Credits vs Carbon Tax Credit)
• 80% of the Middle Class is paying higher taxes
• Cdns above the average wage
• The wealthiest are paying less of the federal taxes
• Household Spending
• Child Tax Benefit / After Tax income
• Poverty
• Principal Residency / Speculator tax
• Cable and Satellite Pricing Index
• Lumber Prices
• Fuel Prices
• Hydro Rates
• Farmer Prices
• Summary

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. Overall Cost of living by major area

6. Housing Price Index
Source -
https://www150.statcan.gc.ca/n1/daily-
quotidien/201021/dq201021c-eng.htm

7. Consumer Price Index
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190717/dq190717a-eng.htm or
• 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 –
• Government does set policies that impact
inflation
• Payroll taxes
• Income tax rates
• Regulations
• Hydro rates
• There are many factors that impact
inflation that are outside of government
control
• Commodity Prices
• Wage increases (Private Sector)

8. Housing Prices
Source - https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1810020501#timeframe and http://www.rbc.com/economics/economic-reports/canadian-housing-
forecast.html
All levels of governments need to embrace modular housing as part of addressing their housing shortage. https://www.prnewswire.com/news-releases/demand-for-
modular-housing-to-grow-over-5-annually-through-2024-301062001.html
Housing Ponzi - https://www.cbc.ca/news/opinion/homebuyers-incentive-1.5281833 “The program asks too much in exchange for savings of a couple of
hundred dollars a month”
Housing needs to address their systemic issues facing affordability!
https://www.slideshare.net/paulyoungcga/housing-market-analysis-and-commentary-canada
Source - https://tradingeconomics.com/canada/housing-index

9. Household Debt to Income

10. Broadband
This is another reason why @JustinTrudeau does not get it about cell and internet rates. Capital is required to
upgrade and maintain the network.
1. Teksavvy hikes rates - https://www.itworldcanada.com/article/teksavvy-hikes-prices-for-all-residential-
internet-subscribers-and-says-it-may-need-to-do-it-again/429063
2. Cost to expand 5G networks - https://www.slideshare.net/paulyoungcga/whats-next-for-5g-networks
3. More people working from home - https://www.bnnbloomberg.ca/canadian-telecoms-say-covid-19-causing-
surge-in-demand-for-services-1.1436844
4. Capital Investment - https://www.canadianmanufacturing.com/financing/bell-big-cable-networks-ask-
government-to-overrule-crtc-on-wholesale-rates-242328/
5. Rogers - https://www.bnnbloomberg.ca/rogers-earnings-1.1377765 “The Toronto-based company -- owner of one of
Canada's biggest wireless and internet businesses -- issued 2020 guidance that includes an estimate of between $2.7 billion
and $2.9 billion of capital expenditures this year. But that is assuming there is no negative changes to the regulatory
environment. "If the regulatory rules change, we will cut our investment. We will have no choice," Rogers chief executive
Joe Natale said in an interview.”

11. Food Prices
• COVID19 and Food Prices - https://globalnews.ca/news/6880414/supply-
chain-food-shortage-coronavirus/
• Food prices soaring despite deflation -
https://www.huffingtonpost.ca/entry/consumer-prices-canada-
deflation_ca_5ec52a37c5b6e47da9edbdaf
• Failure to protect farmers and supply chain -
https://www.slideshare.net/paulyoungcga/agriculture-and-food-policy-
what-needs-to-happen

12. Household Costs / Carbon Pricing CAN environmental ranking has dropped one position under
your watch
No where do you mentioned either the dumping of sewage into
waterways or the impact of cruise ships.
No where do you mentioned that carbon tax hurts family
$1K+/yr (ex-tax credit)
https://www.slideshare.net/paulyoungcga/2019-election-
environment-climate-change-issues-and-concerns-canada-
september-2019
@cathmckenna
You allow sewage into waterways
Cruise ship have emissions issues
Oil is going by rail
Canada already taxed pollution way before your carbon tax
https://www.slideshare.net/paulyoungcga/2019-election-
environment-climate-change-issues-and-concerns-canada-
september-2019

13. 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 or https://www150.statcan.gc.ca/n1/daily-

14. 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!

15. Average Wages / Canada
This was the liberal goal under @jyduclos @JustinTrudeau @telfordk which was to build a society dependent on their govt!
EI Fund was in a surplus as such any major changes will require a review of the funding. EI is funded through payroll taxes -
https://www.slideshare.net/paulyoungcga/policy-review-unemployment-insurance-canada or
https://www.slideshare.net/paulyoungcga/policy-analysis-employment-insurance-and-cerb-canada
GDP - https://www.slideshare.net/paulyoungcga/gdp-canada-real-truth-august-2020 GI-
https://www.slideshare.net/paulyoungcga/should-canada-moved-to-guaratee-income

16. 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/
https://www.slideshare.net/paulyoungcga/2019-
election-top-1-wealthiest-canada-june-2019

17. Wealth Tax
@theJagmeetSingh you want to drive out investment and people, then push a wealth tax. BTW: You may want
to stop wearing 4,000+ suits before you start preaching you are for the little guy
https://www.slideshare.net/paulyoungcga/are-wealth-tax-a-good-idea
*** Wealth Tax have failed in the past

18. 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)

19. 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

20. Taxation, After Tax Income and Household
Spending

21. Taxing the Rich

22. Canada net worth
Source - https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019003-eng.htm or https://business.financialpost.com/news/economy/canadians-average-net-worth-shrinks-for-first-time-in-a-decade-amid-bank-
of-canada-rate-hikes or https://environicsanalytics.com/en-ca/resources/blogs/ea-blog/2019/09/18/wealthscapes-2019-report-canadians-display-financial-prudence
Harper 2015 Net worth
Trudeau seen the first
drop in net worth in
more than a decade
Turns out that Harper
Policies help with the
net worth for people

23. 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

24. 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

25. Cable and Satellite Pricing

26. Federal Govt
– Fiscal
Management
• GDP growth is 2% on
avg for Trudeau
• Trudeau has no
balance budget

27. GDP per capita
Source – Stats Canada and https://www.ceicdata.com/en/indicator/canada/gdp-per-capita or
https://calgaryherald.com/opinion/columnists/opinion-economic-underperformance-excessive-indebtedness-and-our-constrained-future

28. Lumber Cost
Source - https://www.canadianmanufacturing.com/operations/new-record-wood-product-prices-boost-shares-and-estimates-for-canadian-producers-
259279/ or https://www.slideshare.net/paulyoungcga/forestry-management-environment-sustainable-practices

29. Fuel Prices
Source - https://tradingeconomics.com/canada/gasoline-prices https://nationalpost.com/opinion/john-
ivison-get-ready-for-the-liberals-secret-new-carbon-tax
New Carbon Tax (Fuel Standard)

30. Hydro Price Index
Hydro Analysis - https://www150.statcan.gc.ca/n1/daily-quotidien/201013/dq201013d-eng.htm

31. Farmer Price Index
Source -
https://www150.statcan.gc.ca/n1/daily-
quotidien/200902/dq200902d-eng.htm

32. Affordability
• Canada is still struggling with both equality (https://www.slideshare.net/paulyoungcga/has-canada-
reduced-gender-equality-issues and poverty (https://www.slideshare.net/paulyoungcga/why-has-
poverty-still-exist-around-the-world
• Canada has some highest broadband costs in the world -
https://mobilesyrup.com/2019/12/18/canada-top-five-highest-costs-100mbps-internet/ (Where is the
relief promise by Trudeau)
• Canada needs to re-think its economic and tax policies -
https://www.slideshare.net/paulyoungcga/scorecard-government-and-economic-performance-
november-2015-to-april-2020
• Trudeau’s housing reforms have done little for both supply and affordability. More work on policies is
required including urban planning and 3-D housing
• Building codes need to revamp to deal with 3-D housing -
https://www.forbes.com/sites/pikeresearch/2019/11/20/3d-printed-homes-quietly-gain-traction/#74899cc763bd
• All levels government need to look at proper land management - https://www.slideshare.net/paulyoungcga/why-
do-politicians-play-games-with-the-environment

33. Other Sources
• 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.udem
y.com/ (search Paul
Young CPA CGA

34. 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
• Post-Covid19 - https://www.slideshare.net/paulyoungcga/whats-
next-for-canada-post-covid19
• Fixing issues plaguing the goods-producing sector -
https://www.slideshare.net/paulyoungcga/how-to-address-issues-
facing-getting-goods-to-market
• Circular Economy - https://www.slideshare.net/paulyoungcga/how-
to-best-support-a-circular-economy