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Social Programs and Taxation. What is a Social Program??. - services provided by the government to reduce economic inequalities and promote the well-being of citizens. Human Resources and Skills Development Canada. 1.Education and Training.
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What is a Social Program?? - services provided by the government to reduce economic inequalities and promote the well-being of citizens
Human Resources and Skills Development Canada 1.Education and Training http://www.servicecanada.gc.ca/eng/subjects/education/index.shtml 2. Employment http://www.servicecanada.gc.ca/eng/subjects/employment/index.shtml 3. Health Care http://www.servicecanada.gc.ca/eng/subjects/health/index.shtml 4. Housing Assistance http://www.servicecanada.gc.ca/eng/subjects/housing/index.shtml 5. Immigration http://www.servicecanada.gc.ca/eng/subjects/immigrate/index.shtml
Continued……. 6. Income Assistance http://www.servicecanada.gc.ca/eng/subjects/benefits/index.shtml 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?
The “free” health care enjoyed by Canadians costs big bucks… where does the government get it? Show me the money!
Allsocial programs are paid for by taxes The ? is…… how many taxes should each citizen be expected to pay.
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.
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
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
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
Which governmenthandlesthe 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
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.
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
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
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
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?
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.
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)