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Social Programs

Social Programs Focus Question: How do decisions about social programs and taxation in Canada and the US attempt to meet the needs of citizens?. Social Programs. Social programs are services provided by the government and paid for by taxes

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Social Programs

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  1. Social Programs Focus Question: How do decisions about social programs and taxation in Canada and the US attempt to meet the needs of citizens?

  2. Social Programs • Social programs are services provided by the government and paid for by taxes • Their goal is to reduce economic inequalities and promote the well being of citizens • There are differing opinions on what constitutes a social program • Health care, pensions for senior citizens, income assistance, education, affordable housing, child protection services, employment insurance, child care and other programs supported by a government • Three areas of focus for us will be: • Health care • Pensions for senior citizens • Income assistance • The decisions of governments to provide (or not provide) social programs comes from many different factors • Economic philosophies • Different values

  3. Sweden – Too Many Social Programs? • “In Sweden, new parents get 480 days of parental leave and a child allowance from the state. There is free day-care offered from age 1, and a free primary and secondary school system that promotes democratic values. School lunches are free for all students. University and post-graduate studies are free. Healthcare and dental coverage is high quality and universal, and patients choose their doctors. A public pension system reserves a portion of your income for retirement. There is an efficient public transportation system of metros, streetcars, buses, and commuter trains.” • “Sweden pays for its social welfare system through one of the highest tax rates in the world. The people we talked to saw paying in as part of their self-interest. Everyone pays in, and everyone gets back.” • - Mike Medow, Director of Allied Media Projects in Detroit • http://blog.gmfus.org/2013/12/18/swedens-social-welfare-system-up-close/

  4. Health Care • Canada has public health care • Public funds (taxes) pay for it • It is considered a necessity • The United States has private health care • Individual citizens cover the cost of their own medical needs • Health care is considered a business, where profit is a goal • Many Americans buy (or receive) health insurance to cover some of the costs of medical expenses • Everyone may not be able to afford it, however • Gov't has Medicaid & Medicare Discussion Question: Which form of health care do you think is more effective? Why? Do you have any experiences to draw upon?

  5. Canadian Programs (2007)

  6. Government Responsibilities • Because Canada follows a Federalist system, both the provincial and federal governments provide social programs • Provinces have the responsibility to supply health care to their residents • That's why funding and programs can differ by province • Allows for unique perspectives and needs • BUT, because the federal government has the catch-all “peace, order and good government” it can pass laws which affect how provinces provide health care • The American constitution allows both federal and state governments to create laws regarding social programs • Specific responsibilities are not addressed, however • In general, federal laws determine the principles regarding social programs

  7. The Canada Health Act is federal legislation which created 5 principles for health care in Canada in 1984 • Every province and territory must abide by them • Publicly Administered: run by the government and is not for profit • Comprehensive: it must look into all your health needs • Universal: everyone is allowed to access it • Portable: is available everywhere in Canada • Accessible: available within a reasonable time and distance • These 5 principles apply to all hospitals, physicians and surgeons • Dental care and eye care and other health related services are NOT included

  8. American Programs (2007)

  9. Private vs. Public Debate - Videos • http://www.youtube.com/watch?v=48gvhlZTqtM • http://www.cbc.ca/news/world/toronto-s-dr-danielle-martin-educates-u-s-senators-on-canadian-health-care-1.2570872

  10. Taxation • Social programs are funded by taxpayers' dollars • Both the federal and provincial governments collect taxes from residents • The federal government gives some to the provinces • Canada Health Transfer • Canada Social Transfer • Citizens of Canada pay two main types of tax • Income Tax • Sales Tax

  11. Sales and Income Tax • Income Tax: This is a tax which is based on how much money you earn • They more money you make, the more taxes you pay • Sales Tax: This is a tax that is added on to products that you buy • The more products you buy, the more sales tax you pay • Everyone in Canada pays the Goods and Services Tax (GST) • It is currently set at 5% • Provinces can choose to add a Provincial Sales Tax (PST) • Some provinces have a Harmonized Sales Tax (HST) • Canadian families paid, on average, 17% of their income to taxes in 2005 • The median income of families in 2005 was $67,000

  12. Tax Brackets • Taxes are calculated using a bracket system • You fall into a certain “tax bracket” depending on how much income you earn annually • The higher your bracket, the higher percentage of taxes you will pay • Taxes are generally taken off each pay by your employer, but the rate is up to you • This could lead to a refund or balance 2015 Tax Rates:http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

  13. Tax Distribution: Canada

  14. Tax Distribution: Alberta

  15. Taxation Models • A taxation model shows a policy which describes: • What to tax • How much to tax

  16. Tax Evasion • Canada's government(s) spend a lot of tax dollars on social programs • Because of this, tax evasion can be a serious issue • Misrepresenting what you earn to avoid paying, or paying less, tax • Tax evasion is against the law • You have to make a legal tax return • The economic activity (people, businesses) that the government taxes is referred to as the tax base • The tax base it what pays for social programs and other services • If you do not report your economic activity, you are committing tax evasion • The people who work in a country and do not pay taxes are part of what is termed the underground economy or the black market • Generally, people perform tax evasion for legal reasons

  17. Tax Dodgers - Video • http://www.youtube.com/watch?v=YMtG3JXrwFc

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