Canadian Money Forum banner

1 - 20 of 27 Posts

·
Registered
Joined
·
11,825 Posts
Discussion Starter #1 (Edited)
The Trudeau government announced an $83 billion dollar aid package today. Details are still to come out and the program starts in April.

The details should provide for some discussion on the various programs as they appear to be somewhat complicated.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #2
Hmmm

$55 Billion of the spending is deferred taxes. That isn't really "spending" but it puffs up the number and sounds good.

Different benefits and lots of details to be ironed out, but it seems to me they made this as complicated as they could and likely will create all kinds of screw ups because of it.
 

·
Registered
Joined
·
2,646 Posts
Hmmm

$55 Billion of the spending is deferred taxes. That isn't really "spending" but it puffs up the number and sounds good.

Different benefits and lots of details to be ironed out, but it seems to me they made this as complicated as they could and likely will create all kinds of screw ups because of it.
Well, we simply can't afford many billions of new debt. But deferring and spreading will help us deal with it. I think the plan overall is not too bad.

Lots of details (which is what people on other forums are complaining about), but realistically there is too much to keep up with.
The leaders took a few ideas, turned it into an acceptable plan, now it's up to the rest of government to figure out the how.
That's what should happen.

I'm glad to see our government moving fast, while there are a lot of issues, of the G7 nations it seems we have one of the more comprehensive plans.
 

·
Registered
Joined
·
11,729 Posts
A lot of this is just confidence creation. So deferring tax payments is not spending. It is a cashflow play to help businesses stay liquid. Big numbers help with economic confidence.
 

·
Registered
Joined
·
2,646 Posts
A lot of this is just confidence creation. So deferring tax payments is not spending. It is a cashflow play to help businesses stay liquid. Big numbers help with economic confidence.
And some small handouts to help with those who are in tough times.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #6
It sounds to me like the Liberals may plan on making some of these benefits permanent. It would be pretty unpopular to scrape back child benefits or put the waiting period back in EI.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #7 (Edited)
The government announced they had worked with the banks to allow people to defer mortgage payments for up to 6 months.

The banks are either denying people outright or requiring complete credit checks with income verification, credit scores, employment records......etc.

I remember during the housing crisis when a very unhappy Finance Minster Jiim Flaherty called the banks for a chat.

Hopefully, Finance Minister Morneau will making a few similar calls to the banks today.

Landlords and banks are going to have to step up with some creative ideas to defer payments because a lot of people will be missing work for awhile.

I still like the idea of landlords returning 50% of the last month deposit. I would guess 99% or renters would pay the 50% remaining for the last month without a problem.
 

·
Registered
Joined
·
10,336 Posts
It sounds to me like the Liberals may plan on making some of these benefits permanent. It would be pretty unpopular to scrape back child benefits or put the waiting period back in EI.
I don't see why putting back the waiting period for EI would be an issue. Dropping it was for an exceptional situation that hopefully isn't going to repeat itself soon.


Cheers
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #9 (Edited)
It would affect votes. The Harper government changed EI qualifications for seasonal workers.

I think the Liberals remember what happened next. In the following election, the Liberals swept every riding in Atlantic Canada.

The political lesson......screw around with people's benefits at your own peril. Once people have the benefit they don't like politicians who try to take it away.
 

·
Registered
Joined
·
2,646 Posts
The government announced they had worked with the banks to allow people to defer mortgage payments for up to 6 months.

The banks are either denying people outright or requiring complete credit checks with income verification, credit scores, employment records......etc.

I remember during the housing crisis when a very unhappy Finance Minster Jiim Flaherty called the banks for a chat.

Hopefully, Finance Minister Morneau will making a few similar calls to the banks today.

Landlords and banks are going to have to step up with some creative ideas to defer payments because a lot of people will be missing work for awhile.

I still like the idea of landlords returning 50% of the last month deposit. I would guess 99% or renters would pay the 50% remaining for the last month without a problem.
Bankrupting landlords is going to create even more of a housing shortage.


It's bad enough that you can't realistically hold tenants liable for damage, or have damage deposits, or evict them. Demanding rent holidays without compensation is just nuts.

I am sooo glad I didn't get into rental housing. The policy direction was bad, and it's only getting worse.
 

·
Registered
Joined
·
3,598 Posts
Bankrupting landlords is going to create even more of a housing shortage.


It's bad enough that you can't realistically hold tenants liable for damage, or have damage deposits, or evict them. Demanding rent holidays without compensation is just nuts.

I am sooo glad I didn't get into rental housing. The policy direction was bad, and it's only getting worse.
I am a member of a landlord and tenant group , tenants think mortgage deferrals mean they should get a rent deferral too .The cannot grasp this is on a case by case basis and likely investment properties will not qualify ,I see the n12 going up after this as small landlords will just sell to get rid of tenants deep in arrears over this.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #12 (Edited)
Rent deferral and last month deposit are different issues.

Tenants in rent arrears wouldn't have any last month deposit remaining, because it would have been applied to the arrears owed.

I think landlords are going to have to be practical about it and work individually with tenants if that is possible.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #13 (Edited)
If the 1% fatality rate of COVID19 is anywhere near accurate, a lot of older Canadians could die from the virus.

Maybe the government should have raised the $2500 CPP death benefit to at least cover funeral expenses.
 

·
Registered
Joined
·
11,729 Posts
I have a feeling a lot of those funerals will be modest, small affairs. Generally, you don't want a bunch of old folks coming for the visitation/service. I'm guessing immediate family and close friends. Should help with the cost!
 

·
Registered
Joined
·
3,050 Posts
If the 1% fatality rate of COVID19 is anywhere near accurate, a lot of older Canadians could die from the virus.

Maybe the government should have raised the $2500 CPP death benefit to at least cover funeral expenses.
You can get a funeral for less than $2500 from basicfunerals.ca or similar. I see no reason the government should pay for anything fancier. If you want something fancier that's up to you.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #16 (Edited)
I don't know about that place Spudd. It is located in a strip mall with a massage parlor and a place that sells fireworks.

It isn't too expensive to get an immediate cremation, but $2500 and some fireworks wouldn't provide the funeral I would like to have.

Oh lay me down in Forest Lawn in a golden casket.
Put fresh flowers over my head in a silver basket.
Let the Drum and Bugle Corp blow taps while cannons roar;
Let sixteen liveried employees sell souvenirs at the funeral store.
I want to go simply when I go.
They'll give me a simple funeral there I know.
With a casket lined in fleece,
And fireworks spelling out "Rest in Peace"
Oh take me when I'm gone to Forest Lawn.

Oh lay me down in Forest Lawn; they understand there.
And they have a heavenly choir and a military band there.
Just put me in their care and I'll find my comfort there,
With sixteen planes in a last salute, dropping people down in a parachute.
I want to go simply when I go,
And they'll give me a simple funeral there I know.
With a hundred strolling strings,
And topless dancers with velvet wings
Oh take me when I'm gone to Forest Lawn.

Oh, come, come, come, come...
Come to the church in the wild wood,
Kindly leave a contribution in the pail.
Be as simple and as trusting as a child would,
And we'll sell you the church in the dale.

To find a simple resting place is my desire.
To lay me down with a smiling face costs a little bit higher.
My likeness cast in brass, will stand in plastic grass
While weights and hidden springs tip it's hat to the mourners filing past.
I want to go simply when I go.
They'll give me a simple funeral there I know.
I'll sleep beneath the sand,
With piped-in tapes of Billy Graham.
Oh take me when I'm gone to Forest Lawn.

Rock of ages cleft for me--
For a slightly higher fee.

Oh take me when I'm gone to Forest Lawn!


John Denver
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #17 (Edited)
People laid off and collecting EI will have to qualify and will only receive 55% of their income.

It is better than nothing, but will still be tough times for them. Minimum wage workers earning $560 a week are going to have an even tougher time earning $300 a week.

Governments can't pay everyone for everything, and I think at the very least the recovery will be difficult and there will be big changes coming.

https://www.greaterfool.ca/2020/03/19/ch-ch-ch-changes-2/
 

·
Registered
Joined
·
1,013 Posts
You can get a funeral for less than $2500 from basicfunerals.ca or similar. I see no reason the government should pay for anything fancier. If you want something fancier that's up to you.
Get cremated...no one needs to own land after they die.
 

·
Registered
Joined
·
1,013 Posts
If the 1% fatality rate of COVID19 is anywhere near accurate, a lot of older Canadians could die from the virus.
A lot of seniors are staying in and avoiding crowds. My parents haven't gone out for 2 weeks. When they need groceries we pick them up for them and the majority of their friends are also staying in. People taking these steps most likely won't catch the virus.
 

·
Registered
Joined
·
11,825 Posts
Discussion Starter #20 (Edited)
47% of people living in Toronto rent. There is a petition with 578,000 signatures already calling for the government to cancel all mortgage and rent payments for 6 months.

Landlords may be wise to offer to apply last month deposit cheques to rent now. That will buy some time for money from the government to start flowing.

If landlords steadfastly refuse, they may regret what happens instead. Tenants won't pay the rent and can't get evicted.

https://www.change.org/p/federal-government-of-canada-cancel-rent-and-mortgage-payments-during-covid-19?recruiter=671731844&utm_source=share_petition&utm_medium=twitter&utm_campaign=psf_combo_share_initial&recruited_by_id=e2f1c7c0-e5bb-11e6-81db-9b5ac24b33dd
 
1 - 20 of 27 Posts
Top