Why does guaranteeing a minimum annual salary to all Canadians scare politicians so much? Many people view this as establishing a welfare state while bankrupting our country during the process. This is so far from the truth. By taking a fresh look on how we help our co-citizens, we can provide everybody with the basics of life while streamlining our bureaucracy, increasing our tax base, and stimulating our retail industry!

Before we move onto our proposed solution, let us first assess the current state of our average citizen, namely household income/expenditures.  These numbers are taken from 2012 Statistics Canada results.

Following is a table analysing the average expenditure per year for the average Canadian household in dollars;

     
Food expenditures 7,739 8%
Shelter 15,811 17%
Principal accommodation 14,373 16%
Other accommodation 1,438 2%
Household operation 4,111 5%
Household furnishings and equipment 2,183 2%
Clothing and accessories 3,461 4%
Transportation 11,216 12%
Health care 2,285 3%
Personal care 1,194 1%
Recreation 3,773 4%
Education 1,386 2%
Reading materials and other printed matter 214 0%
Tobacco products and alcoholic beverages 1,274 1%
Games of chance 202 0%
Miscellaneous expenditures 1,430 2%
Income taxes 13,060 14%
Personal insurance payments and pension contributions 4,272 5%
Gifts of money, alimony and contributions to charity 1,831 2%
  91,253  

 

According to Statistics Canada, the average household income is $65,200.  Compare this to the average household expenditure of $91,253, our average Canadian household is constantly building additional debt year in and year out.

The goal with the Guarenteed Minimum Annual Income (GMAI) plan, is not simply to give the lowest income earners money to live, but it is meant to ensure that every Canadian has a place to live, food on the table, a way to get around, clothes on their back, and a chance to live healthy life.  

Before we continue, let us define what we consider to be the basic that we want in order to live this kind of life as a free Canadian (figure in dollars, per Canadian household).  The GMAI contribution total is an estimated sum and is displayed in millions; 

   Household Total
Food expenditures 7,739 30,720
Shelter (Rent or Mortgage Payments) 15,811 62,762
Household operation 4,111 16,319
Household furnishings and equipment 2,183 8,665
Clothing and accessories 3,461 13,738
Transportation 11,216 44,522
Health care 2,285 9,070
Education 1,386 5,502
  48,192 191,299

 

One thing to keep in mind is that according to Statistics Canada there is an average of 2.5 individuals in a household, which translates the $46,456 per household.  This means that each individual would get $18,582.

Following is a list from Statistics Canada (2012) on the number of households in each earning level (a household representing 2.5 individuals);

   
Under $5,000 773,076
$5,000 - 9,999 722,444
$10,000 - 14,999 938,644
$15,000 - 19,999 1,015,628
$20,000 - 24,999 845,644
$25,000 - 34,999 1,330,276
$35,000 - 49,999 1,654,448
$50,000 - 74,999 1,566,264
$75,000 - 99,999 757,380
$100,000 - 149,999 467,580
$150,000 - 199,999 122,448
$200,000 - 249,999 48,272
$250,000 and over 76,900
  10,319,004

 

The GMAI shall be applied against a household's pre-tax income level.  This program ensures that a household will have a minimum of approximately $48,192.  

How do we pay for this program?  

  • This program would replace approximately $139 billion that is currently being supplied to Canadians.
  • We currently pay the provinces approximately $13 billion (Canada Social Transfer Equalization Payments which we would no longer pay.
  • General equalization payments to the provinces would be halved, generating another $8.6 billion in savings.  By introducing an added spending of $191 billion, provinces would see their consumption tax increase by at least 9 billion dollars.
  • The federal portion of HST on new spending would bring in over $9.5 billion.
  • Corporations would stand to benefit greatly from the new spending, immediate corporate tax revenue would increase in excess of $24 billion.

With these initial estimates, we come to a total of $194 billion.  This means that this program will save our government almost $3 billion.

By introducing this level of new spending into our economy, we will not only increase the amount of new jobs but significantly stimulate new business and reinvigorate our middle class!

For further reading, check out the following;

Canada’s fisheries belong to all Canadians, not to private interests. We will focus on the long-term economic and environmental sustainability of our marine resources, not on rewarding special interests.

Support the international initiative through the United Nations for a moratorium on high seas drag nets and gill nets.

Ensure that all aquaculture operations meet the highest environmental standards. We will promote the use of closed tank technologies. We will work in partnership with provincial governments, stakeholders and First Nations to protect adjacent waters, communities, and wild fish stocks.

Invest more in habitat protection and salmon enhancement. We will increase enforcement by hiring more fisheries officers and updating the Fisheries Act.

Reaffirm and enforce the oil tanker moratorium on B.C.’s inland coast, including the North Coast inside Passage and Hecate Strait.

Maintain the moratoria on oil and gas exploration in the Gulf of St. Lawrence and off the B.C. coast where the ecological threat is significant.

The United Party of Canada wants all children to get the best of starts in life. We will invest in every child so they get an excellent education and we will try to help the provinces raise standards in every school. At university, we will scrap tuition fees for full and part-time students so long as they maintain a passing grade.

Free tuition for higher education degree qualifications – We will provide free tuition for provincially accredited University, College and Vocational courses, again as long as the student maintains a passing grade, and the courses can be taken full-time or part-time, as suits the individual.

Further, the minimum income will be provided to post secondary students.  A student can study knowing that they have their living and tuition paid for with almost a $100 a week to spare.  By approaching students’ financial situation in such a way we can make sure that they can pursue their studies, foster new businesses, and further enrich our Canadian economy while not exiting school with a huge financial burden.

By protecting our students in this way we can make sure that many more graduates stay and practice their professions in Canada so that we’re not training other country’s doctors, engineers, and other professionals.  In a global market that is getting more and more educated, it is our duty that our populace is better educated so that we can continue to compete and prosper on the world stage.  Ireland and Germany have been supporting their students in this manner for many years and have enjoyed extreme economic growth as a result. This is an opportunity that we are missing out on.

Thus far, any solutions and ideas that have been brought forth by other Canadian political parties have been less than satisfactory. We currently have a party in power that does not take the pending devastation seriously. They have ignored the Kyoto Accord, a pact that Canada signed under a previous government.

The United Party of Canada thinks it is time that Canada stopped relying on fossil fuels and started relying on greener options.

Under this policy, The United Party of Canada will guide the country into a new “Revenue Sharing System”:  A system that will move away from pollution and fossil fuels, and away from inequality and poverty. The goal of this new system is to solve the environmental problem that Canada faces.

The United Party of Canada will also use other methods of guiding Canada into a new era such as changes in infrastructure and appliances and vehicles and new concentration into research and development.  Canada needs to stop being a follower and start being a leader. As a country we can do this.

The United Party of Canada can lead Canada to a new green beginning.

The first step is to implement a Fee for Polluting.  This fee will stop polluters from profiting from rising energy prices. It will be implemented quickly and simply. It will “cover approximately 75 per cent of all domestic emissions”. It will in turn, allow “our economy to immediately begin the needed transition to clean energy, efficiency and low emissions”. The idea behind the fee is to convince and encourage industry to pollute less. It will also create new demand in Canada for green products and green technologies. It will level the playing field.  It will allow companies that want to introduce clean energy or more efficient solutions the flexibility to do so.  Currently, they are at a disadvantage.

The revenue collected by the Fee for Polluting will end up back in the pockets of Canadians. The Fee for Polluting will be implemented at $10.00 per tonne of greenhouse gas emissions.  It will rise by $10.00 per tonne each year for 4 years.  After the first four years, the Fee for Polluting will steadily increase until it reflects the true social costs of pollution.  The Fee for Polluting will target the wholesale level, across the country, to the full range of fossil fuels including coal, propane, natural gas, oil and diesel.

The Fee for Polluting will affect Canadians in the following way.

The price at the pump will not be affected.  Currently, there is 10 cents per litre fee which is the equivalent to $42.00 per tonne of greenhouse emissions.  Diesel and aviation fuel would not be affected in the first year of the new Fee for Polluting.  Currently there is a 4 cent a litre fee on both.  Other fossil fuels used by Canadians are not subject to a fee and therefore will be subject to the new Fee for Polluting.

The cost of filling a 20 lb. propane tank will rise 24 cents in the first year and 95 cents by the end of the 4th year. The price of the average household using heating oil will rise $50.00 (or $4.20 per month) and $203.00 by the end of the 4th year.

The average household using natural gas will rise from either $57 to 66.50 per year (or $4.75-$5.54 per month) and $228 to $266 per year by the 4th year.  The average Canadian family will see an annual increase in direct costs totalling $270.00.

The “Revenue Sharing” would take the form of different tax cuts and incentives.  The tax cuts will range from income tax cuts for both middle and lower income Canadians to corporate tax rates.

The Universal Child Tax Benefit will see an increase.  The Employment credit will be redesigned to help more Canadians.  The Working Income Tax Benefit will help lower income workers starting at the first dollar earned instead of after the first $3000.00.  The Disability Tax Credit will be made refundable.

Canadians in Northern and Rural parts of Canada will also see increased support since their cost of living will be affected by the Fee for Polluting.  This support will be in the form of an annual Green Rural Credit and a boost in the Northern Residents Deduction (NRD).

The “Revenue Sharing System” will also help low-income seniors and low income families, by helping lift them out of poverty and better enabling them to contribute to society. 

Businesses will also benefit from the Fee for Polluting.  They will see support in the form of Broad-based corporate income tax reductions, small business income tax reductions, an Accelerated Capital Cost Allowance for green technologies and Better Research and Development incentives.

Another significant part of the “Revenue Sharing” is the 1 billion contingency offset.  This is designed to off-set the impact of the Fee for Polluting on groups such as not-for-profit organizations and charities.  It will also be used to design tax relief to address unanticipated and unavoidable costs.

While the “Revenue Sharing System” and subsequent tax cuts are important they are only half of what would lead Canada to being a leader in establishing a green environment.  For this policy to be a success, minor changes needs to be made within Canada itself.

Some of the changes include the elimination of all non-energy star rated appliances and inefficient light bulbs; removal of all funding for new nuclear power plants; removal of all subsidies from the fossil fuel industry; Cap extraction levels of oil, gas and coal; regulate vehicle emissions; provide tax deductible green industrial mortgages; offer significant tax incentives/support for conservation and renewable energy development; create a carbon market and have it overseen by a non-governmental body (Montreal Stock Exchange); create a Canadian Carbon Bank; Retrofit all buildings to a high level of efficiency; Provide strong support for walking, cycling, transit, coaches, rail, tele-working and video conferencing; tax credits for LEED Gold and Silver Buildings.

This new Green Policy – “Revenue Sharing System” can help shape a new energy efficient Canada.

The country needs to be rescued and this is the rescue plan to do it.

Millions of people are worried about their jobs and how they will pay their bills.

The government allowed the economy to get out of control by letting people get into too much debt. We believe that people need help now to get through these hard times. We would create a stable economy where ordinary, hard-working people can get ahead

Cutting taxes for ordinary families – We will make the tax system permanently fairer by cutting income tax for people on low and middle incomes and by raising the threshold at which people start paying tax. We would pay for this tax cut by closing tax loopholes. We would also crack down on tax avoidance.

Create a Green-Collar Jobs Fund of $750 million a year to train new workers and re-train displaced workers. This will provide the skills to install and maintain energy efficient and renewable energy technology. It will support the transition from jobs in older, higher-pollution energy systems.

Environmental fee’s can be used to encourage people to act in an environmentally sustainable way. We will launch an Environmental Incentive Programme within the CCRA to advise government and Parliament on ways to reform taxes and incentives to encourage sustainable development.