Twenty-eight per cent of federal employees continued to have problems with the Phoenix pay system in 2021-2022 compared with 47 per cent the previous year, the Auditor General’s office reports. However, the number of outstanding pay action requests rose to 310,500 from 254,500. Moreover, the government had yet to collect some $500 million in overpayments, half dating back more than three years, to more than 100,000 employees [node:read-more:link]
Finance Minister Chrystia Freeland confirmed today that she will present the federal government’s fall economic update to the House of commons on November 3. Her department said it will provide information “on the state of the Canadian economy within a challenging global environment and outline the government’s plan to continue building an economy that works for everyone.” [node:read-more:link]
Canada’s top income earners pay more than half the total taxes collected by governments, according to a report by the Ottawa-based Fraser Institute. During the last federal election campaign, the New Democratic Party had called a special tax for those earning more than $10 million annually, but the Institute says that the 20 per cent of families with an income of more than $227,486 already cover 53 per cent of overall taxes while families earning less than $56,516 pay 2.1 per cent of total taxes and the middle-income earners 45 per cent. [node:read-more:link]
Canada’s top income earners pay more than half the total taxes collected by governments, according to a report by the Ottawa-based Fraser Institute. During the last federal election campaign, the New Democratic Party had called a special tax for those earning more than $10 million annually, but the Institute says that the 20 per cent of families with an income of more than $227,486 already cover 53 per cent of overall taxes while families earning less than $56,516 pay 2.1 per cent of total taxes and the middle-income earners 45 per cent. [node:read-more:link]
The Bank of Canada today raised its overnight lending rate to 3.75 per cent from 3.25, the sixth increase since March in a continued effort to bring inflation back to the bank’s target of two per cent. The bank also said it expects an economic recession in the first half of 2023. [node:read-more:link]
Former Bank of Canada and Bank of England governor Mark Carney has echoed warnings by the International Monetary Fund and Finance Minister Chrystia Freeland about the prospect of an economic recession in 2023. While he said October 20 that Canada should fare better than many other countries because of its strong economic fundamentals, “a recession is both likely globally and most probable in Canada.” [node:read-more:link]
Canadians eligible for a GST rebate can expect the benefit to double for the next six months, thanks to parliamentary approval of enabling legislation. Bill C-30 was approved by the Senate October 17, less than a month after the government introduced it to address recipients’ cost-of-living concerns. [node:read-more:link]
Statistics Canada reported today that the annual inflation rate in September was 6.9 per cent, a smaller-than-expected deceleration from August’s 7.0. Lower average fuel gasoline prices were the key factor, partly offsetting steadily-rising food costs which have outstripped the overall inflation rate for 10 months. [node:read-more:link]
A class-action lawsuit against Visa and Mastercard has resulted in a policy shift which will enable Canadian businesses to pass credit card fees on to their customers, effective October 6. Some companies such as Telus have already announced new processing fees but a Retail Council of Canada spokesperson said today that it is “more a hypothetical possibility than a real one” that retailers would pass on the surcharge.” [node:read-more:link]
While the average prices of crude oil has fallen by about 20 per cent in the past month, imbalances between supply and demand have caused retail gasoline prices to skyrocket in much of North America as refiners shut down for routine fall maintenance. The average price in British Columbia hit a continental-high average of $2.39 a litre last week. [node:read-more:link]
The Canadian Climate Change Institute said in a report released today that Canadians can expect to have to choose between higher taxes or reduced government services if more isn’t done to adapt to climate change. “We have some ability to change this future,” said Ryan Ness, director of adaptation research for the registered charity, which said that if the public and private sectors begin investing in making the country more resilient to extreme weather, the economic impact could be reduced by 75 per cent. [node:read-more:link]
Post-tropical storm Fiona is expected to be the costliest storm to ever hit Atlantic Canada but analysts at DBRS Morning Star, the fourth-largest credit rating agency in the world, say gaps in insurance coverage leave many property owners without coverage after the weekend’s devastation. [node:read-more:link]
Despite steadily rising food prices, Statistics Canada reported that annualized inflation was 7.0 per cent in August compared with 7.6 per cent in July and a 40-year high of 8.1 earlier in the summer. Economists had been expecting a deceleration, but to 7.3 per cent. Gasoline prices fell by an annual 9.6 per cent in August but food prices were up 10.8 per cent, the largest increase since 11.9 per cent in 1981. [node:read-more:link]
The value of the dollar against its U.S. counterpart is at nearly two-year low. It traded at 75.27 cents at the close of markets September 16, recovering only slightly from 75.15 earlier in the day. Meanwhile the World Bank has warned that as central banks continue to raise interest rates in a bid to damp inflation, there is increased risk of recession. [node:read-more:link]
Federal Environment & Climate Change Minister Steven Guilbeault has announced that up to $250 million will be provided over four years to help defray homeowners’ heating bills, including $120 million in the Atlantic provinces where some 30 per cent of homes use oil-heating. The funds also will support a move toward “greener” heating options. [node:read-more:link]
