Economic Crisis Causes Suffering to Canadian Working People and Small BusinessesPersonal income taxes of workers are projected to fall by 30 per cent for this taxation year indicating the enormous drop in wages paid for the year. Five-and-a-half million workers lost their jobs between February and April alone. The losses pushed the unemployment rate to 13.7 per cent in May, the highest monthly rise on record. For the year, the Canadian economy is projected to shrink by 6.8 per cent. In the second quarter alone the economy declined by 40.6 per cent. This represents the worst contraction since the economic crisis during the 1930s known as the Great Depression. The economy is expected to decline in 2020-21 more than twice as much as it did in 2009-10 during the previous economic crisis. Loss of Federal RevenueThe federal government's revenues are expected to decline to $268.8 billion in 2020-21 from a projected $341 billion in 2019-20. The largest component of the federal government's revenue stream is personal income tax, which is predicted to shrink around $25 billion to $146.3 billion this fiscal year from $170.9 billion in 2019-20 -- a decline of 14.4 per cent. Corporate income taxes are expected to decline 22.3 per cent, about $11 billion, to $38.3 billion from $49.2 billion last year. Revenue from the GST is projected to decline 20.4 per cent, around $8 billion, to $30.9 billion from $38.8 billion in 2019-20. The government through imperialist think tanks, such as the C.D. Howe Institute, is doing propaganda that raising consumption taxes is one way to raise additional revenue to pay back what they have borrowed from the global moneylenders. This would mean higher federal and provincial sales taxes (GST, PST, HST) and other fees.
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