Wednesday March 18, 2020 ~ NATIONAL
by Mary Brooke ~ West Shore Voice News
Prime Minister Justin Trudeau today announced a significant support package of direct payments and tax deferrals to Canadians during the COVID-19 crisis.
In total the package is $82 billion. In that: up to $27 billion in direct support to Canadians workers and businesses has been made available and there will also be $55 billion available to meet liquidity needs of Canadian individuals and businesses through tax deferrals. Trudeau said that is more than 3% of Canada’s GDP.
If people don’t quality for EI or sick leave, this new initiative is aimed at supporting that group. Emergency Care Benefits will be issued every two weeks to workers who have to stay home, said Trudeau. This support will last for 14 weeks; it is apparently comparable to receiving EI. If people fall ill, or have been placed in quarantine or asked to self isolate, if will apply to them.
The new support package is for people who have to take care of a family member with COVID-19 but fail to qualify, Trudeau explained. It’s an emergency support benefit that will help people who are self employed and have to close shop.
The federal government will also take additional steps to protect jobs, said Trudeau. A new measure will see employers receive a 10% payroll support offering “to keep staff on payroll during these uncertain times”, said Trudeau. He said this is a way to help small businesses, adding that the salary help of 10% of employees’ salaries will cover for 3 months.
As for this being tax season. If people owe money on their personal taxes they will have until August 2020 to pay.
Calling it “more targeted”, Trudeau said there is support for people in vulnerable situations. For parents “it’s especially difficult with school closures and additional child care”. Trudeau noted “how much child benefit helps with cost of raising kids”, and so the government’s mechanism to help families is now to boost the Child Care Benefit (CCB) in the coming months.
“Also more for lower income”, people who receive the quarterly GST credit directly into their bank accounts will be increased. Every adult will get an additional $300 and $150 for every child.
“Some groups are particularly vulnerable,” said Trudeau, saying that people still paying off student loans will be assisted with a 6-month interest-free moratorium on Canada Student Loans.
The government will boost funding for shelters for women experiencing domestic violence “when self isolating at home is simply not an option”, said Trudeau.
First Nations communities will have a distinct community-based support fund.
“This list is by no means exhaustive.” said Trudeau. “No matter where you live, what you do, or who you are – you will get what you need.”
This plan builds on coordinated action taken since the beginning of this outbreak, including the more than $1 billion COVID-19 Response Fund, which provided funding to provinces and territories to strengthen critical health care systems. It represents over $500 billion in credit and liquidity support for people and businesses through cooperation between financial Crown corporations, the Bank of Canada, the Office of the Superintendent of Financial Institutions (OSFI), and commercial lenders to ensure businesses can continue to operate.
The actions announced today are part of Canada’s whole-of-government response to COVID-19. As a first step, this plan aims to stabilize the Canadian economy through targeted measures to address immediate challenges faced by workers and businesses alike. Trudeau said it will help ensure that workers have the money they need while they are sick or in isolation, or due to loss of work or a significant reduction in work income, and help support people and businesses experiencing financial hardship because of the outbreak.
“Canadians should not make health decisions based on their financial needs. As the situation continues to evolve, further measures will be announced to support Canadians, stimulate the economy, and protect peoples’ jobs and livelihoods,” it was stated in a followup news release.