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We are reducing income, but Canada is increasing the amount(2)
Two things have happened recently.
The first thing is social security reform.
On August 27, the State Administration of Taxation issued a news that from 2019, social security will be taxed uniformly. That is to say, if your unit used to pay you social security according to the minimum social security payment standard, next year it will pay according to the actual income.
What does that mean?
Take Beijing as an example, in 2018, the minimum payment base of pension and unemployment insurance is 3387 yuan, and the minimum payment base of medical insurance, maternity insurance and industrial injury insurance is 5080 yuan.
If an employee employed by an enterprise earns 10,000 yuan a month and has previously paid social security at the lowest base, the impact before and after the implementation of the new policy is as follows:
Employees need to pay more after the implementation of the new policy: 1023 - 383 = 640 yuan / month
Enterprises need to pay more: 3100 - 1240 = 1860 yuan / person / month
The second thing is to raise taxes on venture capital funds.
The actual tax rate for individual investors of venture capital funds will rise from 20% to 35%, the tax burden will increase by 70%, and the tax revenue in the past years will have to be reimbursed according to the new standard.
When business owners lament that costs are rising and staff lament that incomes will fall, Canada has again allocated funds to increase the amount of "milk money" issued, the increase is as high as 1,000-2,000 Canadian dollars.
We are reducing income, but Canada is increasing the amount of "milk money" allowance!
The Federal Government of Canada has announced a new Milk Grant (or Child Welfare) scheme.
According to the plan, every family with an annual income of less than 30,000 Canadian dollars will receive a child welfare benefit of 6,496 Canadian dollars (equivalent to 34,000 yuan) per year for children under 6 years of age, and 5,481 Canadian dollars (equivalent to about 29,000 yuan) per year for children between 6 and 17 years of age, without tax.
To support this policy, Canada will allocate C$23.3 billion from its fiscal revenue to "milk gold", equivalent to RMB 121.1 billion. It is expected that 90% of Canadian households will benefit from this benefit. The higher the household income, the lower the milk money will be, while high-income households with an annual income of more than 190,000 Canadian dollars (equivalent to about 997,500 yuan) have little chance of doing so.
After the implementation of the Milk Gold Subsidy Scheme, the amount of milk in Canadian households will be increased by 1,000-2,000 Canadian dollars from 4,600 Canadian dollars.
We are reducing income, but Canada is increasing the amount of "milk money" allowance!
In fact, since Canadian Prime Minister Trudeau took charge of the federal government, "milk gold" has been raised more than once. As early as 2015, Trudeau promised before the election that 90% of Canadian families raising children would receive more child benefits if the Liberal Party became the ruling party.
Trudeau fulfilled his promise when he came to power. Since July 1, 2016, Canada has implemented a new child welfare policy. On average, families with children receive an additional $2,300 a year. Most families with children under 18 receive monthly benefits. More than 3.6 million Canadian families benefit from this policy.
Two years later, in 2018, the Canadian government implemented a new round of child welfare promotion program. Unlike in 2016, the amount of milk money in this new policy is adjusted according to the family's annual income. The lower the income, the higher the milk money, the higher the income, the lower the milk money will be. In addition, the new plan makes it clear that milk benefit is a tax-free subsidy and no longer requires taxes.
In addition, Trudeau's Liberal Party government has promised to link the amount of milk money to the inflation index if re-elected in 2020, so that the amount of subsidies will increase with inflation and reduce the impact of inflation on eligible families.
We are reducing income, but Canada is increasing the amount of "milk money" allowance!
So will the milk subsidy program, worth 23.3 billion Canadian dollars, or more than 100 billion RMB, put enormous pressure on Canada's financial situation? In fact, due to Canada's good economic performance in 2017, the Canadian Federal Government promised at the end of last year that additional taxes would be used to improve children's welfare and increase the amount of milk. Therefore, the new milk money is entirely the welfare of the Canadian people.
In addition to the $23.3 billion worth of milk, the Canadian government will also spend $14.9 billion from the Treasury on a range of welfare and tax cuts, including an annual financial subsidy of over $800 million under the Registered Educational Savings Program (RESP), with a maximum government subsidy of $7,200 per child from birth to 18 years of age. In addition to the national welfare policy, Canadian provinces and municipalities are also increasing their efforts to subsidize their citizens.
Over the years, Canada has maintained a very high level of investment in civil welfare, with particular emphasis on children, education and health care. With the implementation of Canada's new welfare policy, families with Canadian status will also enjoy more benefits, and truly realize the "business tax cuts, maternity subsidies, school benefits"!