I Believe the Children are our Future

The middle class is doomed.

You may have heard of that internal Conservative Government report on the middle class prepared by Employment and Social Development Canada even though it was never released.

The Canadian Press used the Access to Information Act to get a copy and it’s mostly remarkable due to some of its blunt take-aways:

“The market does not reward middle-income families so well,” says the report. “As a result, they get an increasingly smaller share of the earnings pie” compared with higher-income families.

The report also refers to debt, saying “many in the middle spend more than they earn, mortgaging their future to sustain their current consumption.”

“Over the medium term, middle-income Canadians are unlikely to move to higher income brackets, i.e., the ‘Canadian dream’ is a myth more than a reality.”

Well it turns out that there’s another way to look at the same data, as Finance Canada has just done.

“Their analysis arrives at conclusions — namely that middle-income families have stagnant wages, are unlikely to move to higher income groups, and are increasingly indebted — which appear to conflict with the general message in Budget 2014 and previous internal briefings,” says an accompanying briefing note for Oliver.

The new report points out that moving from single earner to double earner households as more women have joined the workforce has acted to keep the middle class afloat.

The Finance Canada report estimates about 70 per cent of the increase in middle-class household incomes since the mid-1990s can be attributed to higher workforce participation rates, primarily by women workers.

“There is no second wave of women, spouses, entering the workforce,” said New Democrat MP Nathan Cullen, the opposition’s finance critic.

Of course the MP is being overly pessimistic without cause, there’s an obvious next wave of income for households and it doesn’t require polygamy.

The children are our future.

It’s time for Canada to get in line with global economic trends and fully utilize the productivity of the available workforce.  We have a large population of potential workers that remain untapped.

Instead of wasting tax dollars and time in school, children could be gaining valuable experience cleaning homes, mining coal or any number of other jobs to help support the household. Lets not squander this bright future opportunity, let’s put the kids to work!

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WWW
Guest
WWW

>Instead of wasting tax dollars and time in school, children could be gaining valuable experience cleaning homes

unless they can speak mandarin they won’t even be able to get these kinds of jobs

J
Guest
J

That is a wonderful report… We need a adjustment on a world scale, to make sure the top 10% are paying their fair share.. If they consume and use 90% of the countries capital they need to pay their fair share. If this does change we may see communism come back in play, and I really fear this.

Sesame Street Realty Co.
Guest
Sesame Street Realty Co.

” let’s put the kids to work!”

More importantly, let’s give them low interest 60 year loans so they can get into the RE market. It’s always a good time to get into the market, even when your 9 years old!

cris
Guest
cris

No. Uno

Allow Families to file join return like in the South.

One income family should not be penalized.

southseacompany
Member
southseacompany

Oakland California’s KTVU reports: “A Possible Housing Bubble in Canada”

http://www.ktvu.com/videos/news/a-possible-housing-bubble-in-canada/vCqCD4/?__federated=1

elvince
Guest
elvince
@cris: The extent at which single-income working families are penalised is almost extreme. Retirees can split their income between the 2 spouses, which in some cases can slash the tax bill enough that a retiree making 70% of what he made while he was working can get more money after-tax. But it’s insane, a 30% cut in gross income should end up with a raise in net income. And the one who keeps working shouldn’t end up with less that the one who retires. We can see the problem the other way too: Why should 2 incomes families (let’s suppose no kids) have any tax break that a single guy/gal doesn’t get? They have lots of financial breaks built-in: on phone/hydro/tax/cable bill. Per capita, a single person will pay 2X as much for his phone line than a couple. How… Read more »
tedeastside
Member
tedeastside

what are the career opportunities for young people in vancouver

vancouver is not exactly an economic star…..i dont see any Boeing’s or Microsoft’s here …..lots of pizza by the slice, marijuana, yoga pants, coffee

ouch for vancouver

Insanity
Guest
Insanity

@2 “We need a adjustment on a world scale, to make sure the top 10% are paying their fair share.”

Anyone making $80,400 or above is in the top 10%. The top 10% paid 54.8% of all taxes while the bottom 50% of Canadian income earners contributed 4%. The top 1% of income earners pay 21.2%.

So who is not paying their fair share?

I am not saying we need to tax the poor, just saying people are taxed enough already and the top 10% is paying most of it already. We need to increase incomes and cut back on government spending so people can keep more if it.

http://business.financialpost.com/2013/03/16/heres-what-the-wealthiest-of-the-wealthy-in-canada-earn-and-pay-in-taxes/

Randy Randerson
Guest
Randy Randerson

@7 Yoga pants aren’t even made in Canada, so technically young people can only hawk yoga pants and pretend they’re cool.

Insanity
Guest
Insanity

@7 “vancouver is not exactly an economic star…..i dont see any Boeing’s or Microsoft’s here …”

Excellent point Ted. Why didn’t you bring this to our attention earlier? I never realized Boeing and Microsoft were not based in Vancouver. Keep posting the same thing over and over again so we wont forget.

Bob the builder
Guest
Bob the builder

….Per capita, a single person will pay 2X as much for his phone line than a couple……

I have to warn you: one gets a lot more calls when they’re single than when their married. I can’t remember the last time someone phoned me (not counting those cruise ship horns).

Corruption
Guest
Corruption

So… the facts disagree with Conservative rhetoric, so the facts are wrong.

That’s my takeaway.

J
Guest
J
@Insanity Says: “Anyone making $80,400 or above is in the top 10% The top 10% paid 54.8% of all taxes while the bottom 50% of Canadian income earners contributed 4%. The top 1% of income earners pay 21.2%. So who is not paying their fair share?” Hey I’m in the top 10% and I can share a little more, to equal the playing field. If the additional funds I provide go to lowering costs of education, public transit, and basic staples I am all for it. As I make more money I receive more from the system because I rely on the lower end of the income spectrum to do the work to support my income. Income inequality is the big issue and how is this fixed without a revolution. Again my big concern is the consequence of letting this… Read more »
RFM
Guest
RFM
Recently I saw a posting here that a buyer of a unit in the newly completed and occupied Opsal hi-rise development in southeast False Creek was claiming a $100,000 increase in the value of the unit he bought. I laughed. Why? Simple. There is only one way to find out if his unit has increased $100,000 in value. SELL IT! Sure, the developer may be offering unsold units like his for $100,000 more than he paid. Or a flipper may have a similar unit listed for $100,000 more, but, are they selling? Even if they sell, he will know if HE has a $100,000 gain ONLY when he sells. Then the following analysis will apply: First, calculate his ‘Basis’ in the property this way: Start with the purchase price he paid; add, closing costs, attorney’ and notary’ fees and any… Read more »
Heard Herd selling
Guest
Heard Herd selling

Hehehe Sixth and Willow rusted townhouses, sales not happening, Now called Sixth and Steel, new marketer Bob Pennies, if these never sold before only was Bob gonna sell is with a lot o lipstick and 30-40% reductions

space889
Member
space889

We are already making our children work. I think it is a requirement to have like xx number of work hours in order to graduate highschool in BC? Along with that requirement, the Liberals also introduced that training wage thing which paid lower wage to people with less than a certain number of previous work experience hours.

space889
Member
space889
As for income inequality, I would say the easiest thing would be to eliminate pretty much all tax loops, credits and deductions, lower the overall tax rate, and tax all sources of income the same. Yes – interest, dividends, capital gains all the same. That would probably be the most fair thing for a government to do from a tax policy to level the playing field. As for corporate tax, do the same thing, eliminate all deductions, tax the corporations based on revenue just like how individuals are taxed. Maybe give a tax credit for each full time local citizen/PR employee and a much lower reduced rate for each part-time citizen/PR employee. TFW, etc get no tax breaks. This has the benefit of simplying tax which most people hates and don’t quite get, free up a lot of money, resource,… Read more »
J
Guest
J

Space I like your ideas around the corporate tax issue. I have quite a few friends that have incorporated to gain large breaks on taxes. One of my friends has dropped $5,000 on lawyer and accountants to Incorporated and within a year he has recovered the costs and more. He expects to save 5% on taxes going forward after costs..

All income is equal and should be taxed equally.

crabman
Guest
crabman

After over 30 years of catering to the rich and big business, we the hell did we expect? The natural outcome of unregulated free-market capitalism is plutocracy. The fact is capital has much more power than labour. The one exception to the rule was the post-WWII period when labour unions were strong and countries implemented very progressive tax codes. During that period, the balance of power between labour and capital was pretty even, and the result was probably the best time in human history for the middle class. Since the 1980s, when we drank the supply-side kool-aid, we’ve been undoing those very successful policies. Hopefully we start to backtrack before the revolution starts.

paulb
Member

New Listings 258
Price Changes 87
Sold Listings 118
TI:15659

http://www.paulboenisch.com

OV
Guest
OV

Vancouver Sun publicly shamed for printing Beijing-funded “propaganda”

http://canadalandshow.com/article/vancouver-sun-publicly-shamed-printing-beijing-funded-propaganda

patriotz
Member
@8: “Anyone making $80,400 or above is in the top 10%. The top 10% paid 54.8% of all taxes while the bottom 50% of Canadian income earners contributed 4%.” That’s income taxes, not all taxes. There are other taxes of course and they are not as progressive. These numbers are also misleading for another reason. These numbers are based on tax filers and there is no joint filing in Canada. Thus a husband who makes $100K a year will be counted in the top 10% and his wife who doesn’t work will be counted in the bottom 10%. Likewise his kids if they’re still in school. This makes the net dependent population look a lot bigger than it really is. I think the Canadian tax system should shift more of the burden onto non-productive activities, first and foremost speculative RE… Read more »
Insanity
Guest
Insanity
@19 “The one exception to the rule was the post-WWII period when labour unions were strong and countries implemented very progressive tax codes. During that period, the balance of power between labour and capital was pretty even, and the result was probably the best time in human history for the middle class.” BS, the standard of living is much higher today for the middle class then it was post WWII and for any period prior to today. Maybe the middle class cut is slightly less but still the standard of living is much better. That increase in the standard of living is due to the innovators (the people at the top) not the unions. Unions impede progress. If you look at most of the top innovative companies in the world today they are all non-union where the companies stuck in… Read more »
Insanity
Guest
Insanity

@17 “As for corporate tax, do the same thing, eliminate all deductions, tax the corporations based on revenue”

They already do this. It is called the GST and PST. The GST is essentially a tax on all revenue collected in Canada. And you are the one who pays it. If the tax was hidden and called corporate income tax it would still be the consumer paying it.

Joe Mainlander
Guest
Joe Mainlander

@#21 I’d like to see the day the Vancouver Sun is public shamed for printing RE industry propaganda.

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