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CBC
16-04-2025
- Business
- CBC
Top election issue: Why this 14-year-old is concerned about affordability
Abdullah, 14, is scared of prices getting more expensive They may be too young to vote, but Canadian kids have told us they care about many of the issues up for debate in the lead up to the federal election on April 28. The CBC Kids News team has identified three key issues that matter to our audience. We've also looked at how Canada's major political parties have promised to address them. Today's story is about affordability and the cost of living. The federal election is less than two weeks away. Affordability and the cost of living were common issues that kids we spoke to brought up as important this election. This mirrors what Canadian voters have been saying, too. In a recent poll by Abacus Data, 47 per cent of Canadians listed 'reducing your cost of living' as one of their top-two issues this election. One 14-year-old we spoke to said he thinks it's top of mind for most Canadians. 'The main thing [people] will be focused on is if [leaders] will make the cost of living cheaper, because right now, it's very expensive,' said Abdullah Kamran Ahsan of Ottawa, Ontario. Abdullah said kids like him care about this because they are influenced by their parents. 'Every day when we see them struggle, it doesn't make us feel good,' he said. Abdullah said he wants whoever the next prime minister is to decrease the cost of living. Press play to hear teens from across Canada weigh in on cost of living this election. ⬇️⬇️⬇️ Inflation, tariffs cause more uncertainty The economy and cost of living have been a source of concern for Canadians. A recent study funded by Chartered Professional Accountants of Canada found that 83 per cent of Canadians surveyed had changed their financial plans due to economic uncertainty. One of the areas of concern is inflation, which refers to the increase in prices for many items and services. WATCH — Here's why your family's groceries are getting more expensive Prices normally go up over time, but in the last few years, the jump has been much bigger than Canadians are used to. According to the Bank of Canada, a package of common consumer products that cost $100 in 2020 would cost nearly $120 today. 'I'm very scared that if it gets more expensive and more expensive, how am I going to survive?' said Abdullah. In addition to the cost of essentials like gas and groceries, housing affordability has been a top issue. According to RBC, Canadian homeowners need to use more than half of their income to cover the cost of housing. Traditional guidance has been that people should spend more than 30 per cent of their housing. On top of those concerns, the threat of tariffs from the U.S. has increased uncertainty. Where the major parties stand Each of the major parties has discussed affordability and cost of living issues. Here are some of their proposed plans. The Liberal government cancelled the consumer carbon tax before the election was called. The party is campaigning on that as a cost-saving measure for Canadians. They say they would introduce a 'middle-class tax cut' that would save a two-income household up to $825 a year. Other proposals: Eliminate GST for first-time home buyers on new homes that cost up to $1 million. Prioritize new investment in affordable housing and seniors' facilities. The Conservatives say they would cut income taxes by 15 per cent. They say that would save the average worker $900 a year, and a two-income household up to $1,800 a year. They also say that in addition to the consumer carbon tax that was recently cancelled, they would also eliminate the industrial carbon tax. Other proposals: Remove the GST on new homes sold for less than $1.3 million. Sell off 15 per cent of buildings owned by the federal government so the land can be used to build affordable homes. New Democrats say they would put in place a $16-billion strategy to support building affordable homes and protecting affordable rentals that already exist. The NDP pledges to raise the amount of untaxed income from to $19,500. That means workers wouldn't have to pay federal taxes on the first $19,500 they make. The current amount is $16,129. The party would eliminate GST on essentials like energy, internet and cellphone bills. They also want to put emergency price caps on essential grocery items to 'tariff-proof' Canadians' food security. Other proposals: The Bloc Québécois says it would introduce a GST rebate on new homes for first-time homebuyers. The party would also eliminate the GST for services related to the purchase of a first home, such as building inspections. They would review how the child benefit is calculated for blended families (such as families with divorced parents) by basing it on the income of the parents who have custody of the children. Currently, it is based on the income of the whole household. Other proposals: Restrict credit-card interest rates. Fight for consumers' right to repair tech products like smartphones so they don't have to buy new ones as often. Cut the GST on all second-hand goods. The Greens say they would raise the amount of untaxed income to $40,000. That means workers wouldn't have to pay federal taxes on the first $40,000 they make. The current amount is $16,129. They also say they want to make it free to attend university and college. Other proposals: Expand paid leave to cover time off work for elder care, miscarriage and other family needs. Stop corporations from buying single-family homes, leaving more housing available for individuals and families. Provide a guaranteed livable income to all Canadians. Have more questions? Want to tell us how we're doing? Use the 'send us feedback' link below. ⬇️⬇️⬇️
CBC
19-02-2025
- Business
- CBC
'A trillion-dollar tsunami': Canadians grapple with unprecedented wealth transfer
Canada is in the midst of an unprecedented transfer of wealth that experts say could have significant social and economic implications for the country. The Chartered Professional Accountants of Canada said in 2023 that $1 trillion of wealth was expected to move between Canadian baby boomers and their millennial and Generation X children from 2023 to 2026. Much of that money is the result of real estate wealth, as many baby boomers have benefited from sharply rising home prices and other investments. Keith Willoughby, who runs the Edwards School of Business at the University of Saskatchewan, said this wealth transfer could have a widespread impact on the broader economy and society. "We're talking about a trillion-dollar tsunami that is about to hit this nation, which is unparalleled in our history," he said. The situation is especially visible in cities like Toronto and Vancouver, where home values have risen the most, but Willoughby said Saskatchewan is also experiencing this phenomenon. Willoughby said that money will pile back into the housing market as those children buy houses with those gifted funds, or have their parents directly contribute to down payments. In light of Canada's housing shortage, that influx of money is likely putting upward demand pressure on the housing market. "Assuming there's no increase in the supply of homes, the supply of cottages, the supply of vehicles and the like, you're actually going to increase the equilibrium price," Willoughby said. According to CIBC, 31 per cent of first-time homebuyers in Canada in 2024 received financial help from family members to buy a home. That was up from 20 per cent in 2015. CIBC also reports that the average value of monetary gifts has risen dramatically, to $115,000 in 2024 from $66,000 in 2019. These transfers are expanding wealth divides that go back decades. A 2023 study by Statistics Canada found that among people born in the 1990s, those whose parents were homeowners were twice as likely to be homeowners themselves compared to those whose parents did not own homes. "I think it creates a disturbance within society, because I think we're almost hardwired in our DNA to link cause and effect. That 'If I do X, I should get Y,'" Willoughby said. "You could be wealthy or wealthier by working in a productive profession, or you could be wealthy or wealthier by simply being the luck of the draw." Macleans writer Katrina Onstad describes our growing sense of mismatch between someone's lifestyle and their perceived income as "status fog," where invisible wealth alters a person's place in society relative to their perceived income, and distorts our perception of a middle-class lifestyle. Ballooning farm values In Saskatchewan, the steady increase in land values has placed family farms at the centre of this phenomenon. According to Statistics Canada, the average value per acre of farmland and buildings in Saskatchewan has nearly doubled since 2016. Donovan Tofin, a wealth management advisor for farmers based in Saskatoon, said the average value of a farm in the province is now likely more than $3 million. Tofin said that's creating tension in some farm families, as owners debate whether to sell the farm or pass it on to their children. "Looking back at my career in the '80s and '90s, sitting around the table with the family it was basically, well, which one of you poor souls got to stay in farming?" he said. "Today it's the opposite, where the kids know there's a lot of wealth. They're not sure what the number is, but they know there's significant wealth there." An unequal distribution Not all young Canadians will be a part of this wealth transfer. Newcomers who didn't participate in the Canadian housing market decades ago, and Indigenous people, who were largely prohibited from doing so due to colonial laws, have less to pass down. Home ownership was not permitted on reserves, and Indigenous people were barred from owning and running their own businesses. "We don't even have really a boomer generation to pass stuff down," said Jason Bird, who teaches business at First Nations University of Canada. "Most of the people from that generation, numerous of them have passed on already. They're already gone, but there was never a real inclusion in the wider economy so there wasn't much to leave. "Wealth is kind of judged differently in Indigenous communities. Really, the ability to share more is actually considered wealth. The more you have, the more you can give, and the more you can give, the more it helps numerous people." Converting gifts to donations Donating inherited money has become more popular as inheritances have grown. Donna Ziegler is the executive director of the South Saskatchewan Community Foundation, which helps individuals and businesses set up funds that benefit charities in perpetuity. She leveraged Saskatchewan's agricultural wealth to build a property holding company that donates the proceeds of land rental income to local communities. "When we're talking about intergenerational transfer of wealth, it's keeping that wealth alive onto the next generation," she said. Other people are taking individual steps to donate their newfound wealth. Jess Klassen, who received a $300,000 inheritance, is part of a group called Resource Movement. It educates people on how to redistribute their wealth effectively. "Getting that money really made me think more that I wanted to actually take steps to connect to an organization and make some goals," they said. "How much money do I actually need to live my life in a way that I feel safe living?" Klassen hasn't decided yet on what their strategy will be, but said it will likely involve redistributing a portion of their income and total next worth. Canada has not had an inheritance tax since 1972, so these redistribution efforts remain optional. But Willoughby believes that Canada, which is the only country in the G7 without one, could benefit from studying it. "For generations we have hung our hat on this notion that the CRA is going to tax income, not wealth, and until the CRA changes that tune or the government changes that perspective, I think we are a long way away from an inheritance tax," he said. "I think it would help Canada though to maybe take a look at those jurisdictions that have incorporated this just to see, are there ways of maybe teasing out some of the benefits."
