CANADIAN SUPPORT SOCIAL PROGRAMS AND TAXATION

1. CANADIAN SUPPORT SOCIAL PROGRAMS AND TAXATION CHAPTER 8

2. Social programs • What are social programs? • Social programs are provided by the government to reduce economic inequalities and promote the well-being of citizens. • Social programs are paid for by taxes. • They aim to reduce economic inequalities in society and promote the well being of citizens. In Canada: • Health care • Education • Low – income housing • Pension • Welfare services • Employment services and many many more How do social programs affect quality of life?

3. Social programs • Thousands of people are homeless in Canada. Governments in Canada and the United States provide support to people in distress or those who cannot meet their basic needs. • Homeless shelters will provide a safe place to sleep and often supply a food program. • Low income housing can help people who do not make enough money to afford a home. • Citizens who cannot meet their basic needs for food, clothing or shelter receive assistance, paid for by taxes.

4. Government Responsibilities • Different levels of government provide and fund various social programs. • Each level of government had different responsibilities. • Each province is responsible for health care. • The federal government can pass laws, like The Canada Health Care Act.

5. The Canada Health care act • A federal law that sets out 5 principles for health care in Canada. • Health care must be: • Publically administered: no profit gained • Comprehensive: for care provided by hospitals, physicians and surgeons. • Universal : available to everyone! • Portable: available everywhere in Canada. • Accessible: available within reasonable time and distance.

6. United States • In the United States, federal and state governments can make laws about social programs. • Citizens with low income receive health care paid by taxes. HOWEVER, all other citizens pay for health services or health insurance on their own. • In 2007, about 15% of people in the USA did not have health insurance because they could not afford it. • People who cannot meet their basic needs may receive financial assistance – welfare.

7. Senior Citizens • In Canada • At age 65, all citizens who have lived in Canada for 10 years automatically qualify for a monthly pension, paid for by taxes. • Federal legislations • Old Age Security Act • The federal government provides the pension • In the USA: • Senior citizens support themselves through personal savings. • Senior citizens sometimes receive help from their families • There is no legislation to help them.

8. How do we fund social programs? • In Canada, the government collects taxes to pa for the services that are provided to citizens. • Canadian citizens pay 2 types of taxes to the federal government to the provincial government: Income Tax and Sales Tax. • Income Tax: is based on what you earn – the more money you earn, the more taxes you pay • Sales Tax: based on what you spend on products and services. Every person pays sales tax. • In Alberta, sales tax is 5% • Some provinces, like B.C and Saskatchewan, also have PST (provincial sales tax) • When GST and PST are combined it is called HST – meaning, Harmonized Sales Tax.