Big corporations and the most well-connected Canadians are doing great, while working class Canadians, middle class Canadians, and small businesses are getting crushed.
We are currently in the middle of one of the biggest transfers of wealth in our history.
Wealth is evaporating for middle class and working class Canadians, and thousands of small businesses are being wiped out.
Even as this takes place, the elites are doing better than ever. Condo prices in major cities continue to rise, housing is getting more and more expensive, big corporations – particularly global corporations – are making record profits, and politicians and top bureaucrats are still getting their paycheques.
This wealth transfer will likely dwarf what took place in the 2008-2009 financial crisis, as that crisis – at least initially – saw all sectors of the economy take significant damage.
With inflation spiking – regardless of ‘official’ numbers we can all see that life is rapidly getting more expensive – the Liberal government is also slamming our country with both an increase to the carbon tax, and a new carbon tax – the Canada ‘fuel standard.’
This will make things even more expensive for working class and middle class Canadians, add to costs for small businesses, while not even being noticed by mega corporations.
As a result, this transfer of wealth will ongoing, unless it is reversed.
And here the ways we can reverse it:
A Massive Tax Cut for working class and middle class Canadians.
To begin with, we need to cut income tax rates for working class and middle class Canadians. We need to put billions of dollars back in the pockets of the true engine of our economy, and we need to do so now. A 10-20% cut to current income tax rates for lower income and middle class Canadians would be a step in the right direction.
Eliminate the Carbon Tax
Second, we need to scrap the carbon tax and the Canada fuel standard entirely. That would bring big savings, and unleash more economic growth – growth that is desperately needed given our rising national debt burden.
Cut the GST
While eliminating the carbon tax will be a big help, many would also be concerned about losing the rebates. To make up for that, a cut to the GST would be a wise move, as it would spur further spending in the economy, driving even more growth and putting money in people’s pockets.
Expand The Canada Child Benefit
The Canada Child Benefit is important, because it puts choice in the hands of parents. Parents who want one person to stay home can do so, or it can be used towards childcare. Rather than a national childcare plan, the Canada Child Benefit should be expanded to give parents even more choice and flexibility.
The Canada Prosperity Dividend
Many Canadians feel they don’t have a stake in how the government manages Crown Corporations, because there is no direct connection. That could be fixed with the Canada Prosperity Dividend. Rather than just going back into government coffers, 50% of the yearly profits from Crown Corporations should be distributed to all adult Canadians, with cheques (or deposits) sent out 4 times per year. While the amount might end up being very small, it would at least give Canadians a more direct stake and connection to Crown Corporations.
Reduced Immigration Levels
Given our low birthrates and aging population, Canada certainly needs some immigration. And immigration can bring many benefits to Canada. That said, it is a mistake to keep increasing immigration levels when we are already facing such a tough job market here in Canada. With surveys showing a clear majority of Canadians are against the ever-increasing immigration levels under the Liberals, the government should listen to Canadians and bring immigration down to somewhere closer to 150,000 – 200,000 per year, rather than the 400,000 and up the Liberals are currently pushing for. We also need to realize that our low birthrate is in part because of the rising cost of living, and the ideas I’m outlining here will help make it more affordable for Canadians to have bigger families if they so choose.
Small Business Tax Holiday
Given the devastation they have suffered, even those small businesses that survive will be in a tough situation. That’s why the government should provide a full and total exemption from taxes for small businesses for an entire fiscal year, and then cut small business taxes by 25% going forward.
Increased Enforcement against Illegal Offshore Tax Havens
Rather than going after regular Canadians trying to make ends meet, the federal government should increase resources dedicated to going after illegal offshore tax haven use, particularly by corporations operating in this country.
Balanced Government Spending
Large cuts to government spending right now would be a mistake, since taking money out of an already weakened economy would make things worse. However, given the ideas outlined above (which would have a large cost), there would need to be spending restraint in the federal government. That could be accomplished simply be limiting government spending to 2% growth for a period of 2-3 years. Given the economic growth that the ideas I’ve outlined would bring, a 2% yearly increase in government spending would ensure that our debt-to-GDP ratio is sustainable, while protecting key social programs for Canadians.
Slashing Foreign Aid, Redirecting Spending Towards Canadians
Canada spends roughly $6 billion per year on foreign aid, a number that is certain to surge rapidly this year given the seemingly-endless spending commitments of the Liberals, who always seem to have money to give away to foreign countries even as problems here at home go unsolved. Assuming our foreign aid spending is about $7-$8 billion now, we could easily cut 90% of that and still have money available to provide direct disaster relief – the only type of international aid that is actually shown to make a difference. That would leave us about $6 billion or so to spend here in Canada on Canadians, money that should go to ending boil water advisories on First Nations, supporting our Veterans, protecting seniors care homes, and strengthening our military.
Targeted Tariffs
Given the economic warfare being used particularly by China – who are attempting to cripple Australia’s economy to send a message (something they will likely try against Canada even more going forward), we must reduce our reliance on hostile foreign countries. Imposing targeted tariffs on products from China, particularly in areas where we want to protect domestic production and protect national security, will help secure good-paying Canadian jobs and make Canada more self-sufficient.
Get back to what used to work
These ideas are really about getting back to what used to work well for Canada. Our nation was strongest when we had a strong working class and middle class, something that is being lost. Our ‘leaders’ seem to want us to accept a lower standard of living, even as they live it up and travel the world – unaffected by the policies they impose on the rest of us. To fight back, we need strong ideas to counter the agenda being pushed on us.
If you agree with what I propose, I encourage you to share this post and send it your MP.
Spencer Fernando
