1. Social Programs and Taxation

2. What is a Social Program??
- services provided by the government to reduce economic inequalities and promote the well-being of citizens

3. Human Resources and Skills Development Canada
1.Education and Training
2. Employment
3. Health Care
4. Housing Assistance
5. Immigration

4. These services are free to Canadians… right?
Continued…….
6. Income Assistance
7. Legal Assistance
8. Personal Documents
9. Savings Plans
10. Special Events
11. Starting a Business
12. Travel
These services are free to Canadians…
right?

5. The “free” health care enjoyed by Canadians costs big bucks… where does the government get it?
Show me the money!

6. All social programs are paid for by taxes
The ? is……
how many taxes should each citizen be expected to pay.

7. IMPORTANT
The ideals (values) of the government in control can determine which services will be offered and how many taxes will be assessed to citizens.
Ex. Canada vs. U.S.

8. Healthcare Let’s look at the example of………
- is a public service provided by the Canadian gov’t through taxes
- is a service paid for “out of pocket” by citizens in the US and is provided by private business

9. Health insurance
- an agreement by a company to pay for your health services in exchange for a fee you pay every month, or year
Can be purchased in Canada
used to provide extra services not provided by gov’t healthcare. Ex. Blue Cross
US citizens need to get health care insurance to ensure they can receive the care they need in the event they become ill.
some people can’t afford to do this

10. A Quick Note….. Canada’s health care system has five principles…….
Public
– gov’t run
Universal
– available to everyone
Comprehensive
– care provided by hospitals, physicians & surgeons
Portable
– available everywhere in Canada
Accessible
- available within a reasonable time and distance

11. Which government handles the bills?
- different social programs are covered by the different levels of government because under Canada’s constitution, each level of government has different responsibilities
Examples:
Healthcare= Provincial
Employment insurance= Federal
Child Care subsidies= possibly all levels

12. Social Programs in the U.S.
Federal & State gov’ts can make legislation re: social programs.
no differentiation of responsibilities as there is in Canada.
In general, federal laws take precedence.
U.S. gov’ts have found less reason to support social programs on the same level as Canada.

13. Tax Collection in Canada
Two kinds of taxes….
1. Income Tax
2. Sales Tax
Income Tax- based on a percentage of a person’s income… the more you earn, the more you pay
Sales Tax- paid at the time of buying a product or service, and based on a percentage of the price
GST- Goods and Services Tax; a federal sales tax in Canada

14. What else do taxes pay for?
In Canada and Alberta, your tax money (yes, YOUR tax money) goes towards:
Recreation and culture
Health
Environment
Education
Debt reduction
Foreign affairs and aid
Transportation
Social Programs
Defense
Resource Conservation

15. Taxation in Canada
Taxation Model- a policy of a political party of government about what to tax, how much to tax, and how to spend tax money
Tax base- all the economic activity in a society, taxed by the government to pay for services
See taxation model in text p. 283

16. Taxation in Canada
Some people avoid paying taxes, or don’t tell the truth when they file taxes. This is called:
Tax evasion: misrepresenting what you earn to avoid paying tax
This contributes to the “underground economy” or “black market”
Why does that matter?

17. Taxation in Canada
Since the government uses the tax money to fund social programs, the more money, the better. If you (or anyone else) hides money from the government, there is less money to be used that could potentially be to your benefit.

18. Government in the Economy
Along with social programs, we have seen that the government uses our tax money to fund other ventures as well, and where they choose to put that money, may have different effects and consequences for the country or province.
Example: Canadian Film industry (ch. 6)
Example: Business subsidies or “bailouts” (ch. 6)
Example: Labour Union Strike (health care;ch. 6)