Government are measure on their ability to deliver on their promises. This presentation highlight key areas where the Liberals have yet to keep their campaign promise.

1. Liberal Canada –
Mandate – March 2017
By: Paul Young, CPA, CGA
March 31, 2017

2. Agenda
• Family Tax Benefit
• Middle Class
• Honesty and Integrity
• Modest deficits
• Marijuana legalization
• Infrastructure funding
• Foreign Aid
• Help for Seniors
• CPP Enhancement
• Working relations with the Provinces
• GDP
• Employment

3. Key Planks

4. Income Bracket / $45,282
• Who makes under $45,282?
• Accommodation and food Services
• Healthcare/social services
• Other services sectors
• Part-time jobs

5. Income Tax Bracket ($45,282 – $90,563)
• Majority of the Canadians
• Goods Producing
• Service Sector

6. Liberal Tax cut

7. Liberal / Justin Trudeau - Tax Savings /
Example
• Elimination of tax credits
means more taxes for the
government
• EI and CPP are payroll taxes
as such reduced your after tax
income
• Carbon Taxes bump up the
price of consumer goods and
Utility costs
• Liberals tax cut saved money,
but that money will be lost
through higher payroll taxes,
carbon tax and the
elimination of tax credits

8. People making under 45,282
• No Tax cut
• Hikes to EI and CPP are planned
• Elimination of the Transit tax credit or about $800 savings per year gone in
2017

9. Elimination of Tax Loopholes
Comments:
• Elimination of the boutique and educational tax credits -
http://www.huffingtonpost.ca/cleo-hamel/federal-budget-child-
benefits_b_9558180.html
• TFSA moved back to 5,000 from 10,000 -
http://www.slideshare.net/paulyoungcga/pensions-for-canada-analysis-june-17-2016
• Elimination of principal residency for property held in trust - http://www.cra-
arc.gc.ca/gncy/bdgt/2016/qa12-eng.html (Based on residency status)
• Crackdown on evasion - http://news.gc.ca/web/article-en.do?nid=1049689

10. Family Tax Benefit
Source: http://www.cbc.ca/news/politics/calculator-canada-child-benefit-1.3504399
Issues:
• Where is the incentive to expand beyond 30,000
income
• Latest Retail Sales for August 2016 showed many
people were using the family tax benefit to pay down
debt or for savings Source:
http://www.slideshare.net/paulyoungcga/retail-
sales-canada-august-2016
• What about the impact of other government
policies?
• CPP hikes
• Carbon Tax/Pricing
• Hydro Rates

11. Poverty Levels / Canada
• Family Tax Benefit will reduced poverty levels
• How?
• Income
• Wages have become stagnated - http://www.slideshare.net/paulyoungcga/wages-and-employment-
canada-july-2016
• Part-Time jobs are growing faster than full-time jobs
• Good producing sector continues to bleed jobs
• Source: http://www.slideshare.net/paulyoungcga/government-policies-labour-market-canada-
67545343
• Household spending
• Sheltering and Food account for over 41% of the household spending - http://www.statcan.gc.ca/daily-
quotidien/160212/dq160212a-eng.htm

12. Middle Class
Key Comment:
• Treasury to be drained by $1.4B – Source - http://www.cbc.ca/news/politics/liberal-tax-drain-100-million-
1.3413516
• Taxing the richest - http://www.cbc.ca/news/canada/new-brunswick/higher-taxes-on-rich-may-miss-
revenue-targets-experts-say-1.3031842 or https://www.youtube.com/watch?v=pICUvNi95AY
• – Canada is still one of the best countries in the world -
http://news.nationalpost.com/news/canada/canada-named-the-country-with-the-best-reputation-by-
global-survey-again or https://ca.news.yahoo.com/blogs/dailybrew/canada-tops-the-world-as-most-
reputable-country-021908756.html or http://www.slideshare.net/paulyoungcga/middle-class-and-quality-
of-life-canada

13. Honest and Integrity with Financial Numbers
• Fundraising on the public dime -
http://www.therebel.media/innovations_minister_s_funding_announcements_follow_liberal_fundraisers
• Limo rides - https://www.thestar.com/news/canada/2016/08/18/limo-company-used-by-health-
minister-for-1700-ride-offers-refund-to-taxpayers.html
• Moving Expenses - https://www.thestar.com/news/canada/2016/09/23/liberals-try-to-turn-tables-say-
harpers-tories-paid-out-325k-in-relocation-expenses.html
• Climate Change - http://www.theglobeandmail.com/news/politics/canada-commits-265-billion-to-
climate-change-funding/article27507453/
• Trudeau and Wynne campaigning - http://ipolitics.ca/2016/02/14/trudeau-and-wynne-may-be-getting-
too-cozy-for-their-own-good/
• Trudeau and Nanny - http://www.cbc.ca/news/politics/trudeau-nannies-employment-1.3620702
• MP Renovation Cost - http://www.cbc.ca/news/politics/sohi-infrastructure-minister-office-renovations-
debate-1.3634811

14. Modest Deficits
Comments:
• The country is on track to run a deficit of C$34 billion ($25.7 billion) in the current fiscal year, almost
C$5 billion more than forecast in the government’s March budget, the report calculated. Over the next
five years, Canadian deficits are tracking C$16 billion more than forecast. Source:
http://www.bloomberg.com/news/articles/2016-10-13/td-expects-canada-to-run-bigger-deficits-than-
trudeau-budgeted

15. Marijuana Legalization
Comments:
• Enforcement issues - http://www.theglobeandmail.com/news/national/canadian-cities-challenged-by-
ottawas-pot-plan-vancouver-mayor/article32204568/
• Violations of international treaties - http://www.cbc.ca/news/politics/marijuana-legalization-pot-anti-
drug-treaties-1.3780661

16. Infrastructure Funding
Provincial dilly-dallying over eligibility and fine-print details has held up money for several provinces,
including Ontario, Alberta and Nova Scotia Source:
http://www.canadianmanufacturing.com/regulation/billions-dollars-infrastructure-spending-yet-start-
flowing-173930/

17. Foreign Aid
Comments:
• Expectations were low, but the federal budget released on March 22 provides little concrete encouragement in the
area of international development. In a section ambitiously titled “Restoring and Renewing International
Assistance,” the government commits to increasing the International Assistance Envelope (IAE) by $256 million
over two years – mere peanuts in relation to its other initiatives.
• The Harper government’s IAE reached $5 billion six years ago in 2010–11 and the Trudeau government does not
plan to even match that level until next year. If we take into account inflation, the Liberals are further still from the
modest goal of “restoring” foreign aid levels, which the Conservatives slashed in recent years. - Source:
http://www.cips-cepi.ca/2016/03/24/budget-2016-postponing-decisions-on-canadas-foreign-aid/
• Foreign Aid oversight - http://www.slideshare.net/paulyoungcga/why-does-foreign-aid-fail-to-help-poor-countries-
59777482

18. Help For Seniors
• GIS improvements or $947/year (Targeted low income seniors) -
http://www.benefitscanada.com/news/budget-2016-changes-to-oas-and-gis-
benefits-78787
• Issue hurting seniors
• Hydro costs hurting seniors
• Proposed carbon taxation will eat into household spending
• Drug/prescriptions
• De-listing of OHIP Services

19. CPP Enhancement
• Contribution rate to go from 4.95% to 5.95 -
https://www.sunlife.ca/Canada/GRS+matters/GRS+matters+articles/2016
/Breaking+News/Consensus+reached+on+CPP+enhancement+good+bye
+ORPP?vgnLocale=en_CA
• Impact to business
• Financial burden to business which can make them less competitive to their peers elsewhere
in the world - http://www.bnn.ca/cfib-calls-for-delay-on-final-agreement-of-cpp-changes-
citing-need-for-more-analysis-1.521851

20. Working relations with the Provinces
• After nearly a decade of a prime minister notorious for public tussles with premiers who challenged his policies,
Canada's provincial leaders reacted Tuesday to the electoral victory of a Liberal leader who has promised to work
harmoniously to advance their interests.
• During his time as prime minister, outgoing Prime Minister Stephen Harper was not shy about aggressively engaging
premiers who spoke out against his government and displayed an outward contempt for first ministers' meetings.
http://www.cbc.ca/news/politics/justin-trudeau-s-majority-greeted-with-optimism-by-provincial-premiers-
1.3280093
Issues facing the Premiers and lack of meeting with Prime Minister
• Carbon taxation - http://www.producer.com/2016/10/carbon-tax-not-part-of-new-sask-climate-change-plan/ or
http://www.slideshare.net/paulyoungcga/climate-change-policies-cap-and-trade-emissions-carbon-tax-carbon-
pricing-canada
• Healthcare accord - http://www.cbc.ca/news/politics/premiers-trudeau-health-care-1.3782875

21. GDP Growth
• Scotiabank RBC – March 28, 2017

22. Summary - Overall
Source – Stats Canada – March 10, 2017
Comment:
• Public Sector grew employment by 65,000
Government spending not sustainable – Financial Post – June 28,
2016

23. Employment by Sector
Source – Stats Canada – March 10, 2017

24. Broken Promises
• http://globalnews.ca/news/3009595/justin-trudeau-campaign-promises-
kept-broken/