Canada and CERB

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Blender

Registered User
Dec 2, 2009
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7.8 million people have applied for CERB so far, not 200,000. An estimated 30% of Canada's workforce has either lost their job or had their hours/pay significantly reduced due to the pandemic so far, and the program is in place to make sure we don't have a huge amount of evictions, foreclosures, bankruptcies, etc. so that we're positioned well for a recovery.

Yes there is an estimated amount of fraud, and the government and the CRA have said that they will be auditing and reviewing anyone who collected money to ensure they were actually eligible, anyone who wasn't will be gone after for the money back or prosecuted criminally.

To answer "who is paying for it", in the short term taxpayers that are still working are helping to support people who can't, in the long term everyone will have to pay this down over time.

Edit: 7.8 million, not 3.5 million who have received it.
 

Blender

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Dec 2, 2009
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A1LeafNation

Obsession beats talent everytime!!
Oct 17, 2010
27,284
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I guess the smart play is to get the money, make money, and then pay back the initial grant.

Or highjack a printing press and make your own bills.
 

ffh

Registered User
Jul 16, 2016
8,362
5,073
I guess the smart play is to get the money, make money, and then pay back the initial grant.

Or highjack a printing press and make your own bills.
look the vast majority stayed home when told and will get paid for what they lost. when they go back to work if they do then I would expect the vast majority to tell the government if they were still on cerb that month. really don't see any major fraud. you will have to pay taxes on it so its more like 1200 that will go to rent or mortgage food don't see why some might see this as a problem
 

DuklaNation

Registered User
Aug 26, 2004
5,682
1,544
Currently, CRA will ignore any potential fraudulent submissions. However, this could change, they can adjust retroactively for quite a while. Place your bets accordingly.
 

Blender

Registered User
Dec 2, 2009
51,305
45,253
look the vast majority stayed home when told and will get paid for what they lost. when they go back to work if they do then I would expect the vast majority to tell the government if they were still on cerb that month. really don't see any major fraud. you will have to pay taxes on it so its more like 1200 that will go to rent or mortgage food don't see why some might see this as a problem
It's not. 2-3% of people knowingly or unknowingly committing fraud was definitely not a reason to delay paying the other 97% of people who needed the help. People who are innocently overpaid, like in the situation you describe where they are called back to work mid term, will just have it rolled into their taxable income and no crimes have been committed. People who were never eligible for it are going to get audited aggressively, and prosecuted if need be.
 

Mick Riddleton

“A day without sunshine is like, you know, night.”
Apr 24, 2017
14,036
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Niagara
I think they will get away with it. CRA already been told to look the other way
Wrong, you never get away with it and if no taxes are being withheld on the payments they will pay a lot on it next year. Same as with EI you always pay for it later in taxes.
 

TheDoldrums

Registered User
May 3, 2016
12,154
18,137
Kanada
Neither my wife or I have lost our jobs but I'm glad the program exists. Giving the people in need consistent cash is a better plan than using that money to say, pump up the stock market.

As for the future bill, all nations are going to have to reckon with that going forward as everyone piles on the debt. I think it's unavoidable at this juncture.
 

The Hanging Jowl

Registered User
Apr 2, 2017
10,311
11,422
Just saying, CERB is the tip of the iceberg. Students getting money, seniors, businesses. My small business has received $56,500 so far ($30,000 is an interest free loan that has to be paid back within 2 years). Applying for another $16,500 today and it seems I'll qualify for this every month for months to come since they've announced it will be extended until...?

Not sustainable.
 

PromisedLand

I need more FOOD
Dec 3, 2016
41,857
52,058
Hogwarts
I tried to find information but couldn't find it; not just for Canada but across the globe is the current spending by all the governments for COVID related expense financed by borrowing or just printing the money?

Does anybody has credible source for this?
 

shaner8989

Registered User
Aug 6, 2005
22,841
4,771
The only people who lose are the ones working but with less hours. They are paying taxes yet getting less money and nothing from the government

for example
Used to work 40 hours a week
Now work 25 hours a week

Almost half their income is gone yet getting nothing from the government.
 

MM425

Registered User
Aug 14, 2005
4,968
446
A lot of people seem to be of the opinion that this will eventually transition into a form of universal basic income. If that's the case, we all might as well cash in right?
 
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Blender

Registered User
Dec 2, 2009
51,305
45,253
The only people who lose are the ones working but with less hours. They are paying taxes yet getting less money and nothing from the government

for example
Used to work 40 hours a week
Now work 25 hours a week

Almost half their income is gone yet getting nothing from the government.
Depending on what province they live in, their job, tenure, age, etc., some people in that situation would have been better off treating a major job change like that as a constructive dismissal and collecting severance and the CERB, rather than accepting such a reduced number of hours. Really depends on your individual circumstances though whether you want to go down that route.
 
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