This is brief presentation on household income for Canada

1. PAUL YOUNG, CPA, CGA
SEPTEMBER 13, 2017
Government Policy – Household
Income – Canada - 2016

2.  This presentation is one look at Ontario minimum wage changes. Job losses being
forecasted are always dependent on assumptions. The job losses that may result in
minimum wage changes range from 50,000 to 185,000.
Description

3. 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 – Business Process Change
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

4.  Household income
 Low income change 2005 vs 2015
 Energy Poverty
 Taxation Policies
Agenda

5.  According to the Labour Force Survey, two industrial sectors experienced declines in employment
from 2005 to 2015: manufacturing (-22%) and agriculture (-14%). Over the same period, employment
in the health care sector rose over 30% as did employment in construction and the professional,
scientific and technical services sector, sectors associated with economic expansion.
 These changes in the economy are reflected in changes to median household income. Nunavut
(+36.7%) and Saskatchewan (+36.5%) had the highest growth in median incomes over the past decade.
Newfoundland and Labrador, the Northwest Territories, Alberta, and Manitoba also saw median
incomes grow by more than 20% over the decade.
 The decline in manufacturing jobs in Quebec and Ontario was reflected in the lower growth of median
incomes in those two provinces. Quebec (+8.9%) and Ontario (+3.8%) were the provinces with the
lowest growth rates. The metropolitan areas within these regions also tended to follow these
provincial/territorial patterns.
 For example, almost every metropolitan area in Ontario saw income growth below the national
average, while almost every metropolitan area on the Prairies had income growth above the national
average. The following sections look at regions across the country and provide further detail on the
growth in median household income for provinces and metropolitan areas.
Summary

7. Source – Stats Canada
Household Income
• The Harper government has raised the basic
personal exemption, introduced the Child Tax
Credit and Working Income Tax Benefit, pension
income splitting and famously sliced two
percentage points off the GST to five per cent,
among other changes.
• Wage growth was impacted by 2008-2009
recession and continues to be an issue. Wages
continue to lag inflation
• Liberals cut tax rates by 1.5% in 2016 and then
eliminated boutique tax credits.
• Liberals are introducing national wide carbon tax as
well as hikes to CPP

8. Source – Stats Canada
Incidence of low income by single year of age,
Canada, 2005 and 2015

9.  Source - https://www.fraserinstitute.org/article/higher-energy-prices-fuel-energy-
poverty-in-canada-especially-in-ontario
Energy Poverty
Energy rates are provincial matter

10. Source - https://beta.theglobeandmail.com/report-on-business/canadian-tech-leaders-warn-new-tax-rules-may-hinder-startups-innovation-
agenda/article36234009/?ref=http://www.theglobeandmail.com& or http://www.bnn.ca/canada-s-tax-regime-could-make-it-more-difficult-to-attract-top-talent-
rbc-ceo-1.850720
Tax Laws / Canada
A proposal to boost taxes on Canadian small businesses could make Canada less competitive when it
comes to attracting top talent, RBC CEO Dave McKay told BNN in an interview.
“If we have foreign firms out there recruiting our best and brightest and taking them and their [intellectual
property] to other markets, tax policy has to be part of that,” he said. “We have to have a fair competitive
tax policy across small businesses, start-ups, options and personal tax rates that doesn’t become an
issue that they leave.”
Finance Minister Bill Morneau has come under fire recently for a set of proposals that would close tax
loopholes favored by small business owners and entrepreneurs. McKay did not weigh in on the specific
proposals but said they must be considered in the context of U.S. promises to cut taxes.
“Other jurisdictions are talking about lowering corporate taxes, lowering personal taxes,” he said. “We
have to make sure… our tax policy is competitive.”
BNN – September 8, 2017

11. Source - http://globalnews.ca/news/3293192/canada-2nd-best-country-2017-world-rankings-survey/ or
http://globalnews.ca/news/2465526/canada-named-2nd-best-country-in-the-world-report/
Canada best country to live in
This may sound like a broken record but Canada has been
named the second best country in the world yet again.
For a second year in a row, the Great White North was ranked
second in the annual “Best Countries” survey from the U.S.
News & World Report, in conjunction with Young & Rubicam
BAV Consulting and the Wharton School of the University of
Pennsylvania.
Switzerland edged out Canada for the number one ranking,
scoring a perfect 10 while Canada took in 9.7 in overall scoring.
Global TV – March 7, 2017
Sorry Canada. Germany is apparently the best country
in the world. We’re second, according to a new report
released Wednesday at the annual World Economic
Forum in Davos.
The inaugural “Best Countries” ranking from U.S. News
& World Report, the University of Pennsylvania’s
Wharton School and global brand consultants BAV
Consulting ranks 60 nations looking at 75 factors such
as sustainability, adventure, cultural influence,
entrepreneurship and economic influence.
Global TV –January 20, 2016
LPC and Trudeau CPC and Harper