1. Social Programs and Taxation
Social 9 – Chapter 8

3. $$$$$
The “free” health care enjoyed by Canadians costs big bucks… but where does the government get it?

5. All social programs are paid for by taxes
The ideals of the government in control can determine whether or not supports that are paid for by taxes are given to citizens.
Ex. Healthcare in Canada, vs. healthcare in the U.S.

6. Healthcare
Health care in Canada is a public service… meaning that everyone in Canada is entitled to health care coverage
Health care in the United States is paid for out of pocket by the recipient of the services at the time they are received
Some services can cost hundreds, thousands, or even hundreds of thousands of dollars … how do people pay?

7. Healthcare
Public Health Care- health care paid for by taxes; ex. Canada’s system
Private Health Care- health care paid for by individuals; ex. United States’ system
Health insurance- an agreement by a company to pay for your health services in exchange for a fee you pay every month, or year
People (especially in the U.S.) need to get health care insurance to ensure they can receive the care they need in the event they become ill.
Some companies offer additional coverage for things like dental or eye care to supplement the health care coverage provided by a public system, or to make costs more affordable in a private system.

8. A Short History of Healthcare in Canada
1700’s-1800’s: Hospitals were places which cared
for the poor, usually ran by Catholic
churches
1900’s- During the Great Depression there was
a need for government involvement
- creation of national health insurance to
help pay for some costs
1946- Canada’s first province to introduce
idea of universal healthcare?

9. Saskatchewan Universal Medicare was introduced in Saskatchewan in 1962
In 1966 Prime Minister Lester B. Pearson introduced Medical Care Act (Canada’s Universal Healthcare System)

10. History of US Healthcare
1800’s- mostly developed out of need to treat injured in civil war.
1900’s- like in Canada, the Great Depression resulted in need for government involvement
President Franklin D. Roosevelt introduced Social Security (Pension/Disability Social Program) but publicly funded healthcare was rejected
1964- President Lyndon B. Johnson introduced Medicare (provided healthcare to elderly (65+ and disabled)
President Barack Obama: “ObamaCare”- to supply medical insurance to those who cannot afford it.
2017 – Trump shoots down ObamaCare
However…..

11. How does this image contrast Public and Private healthcare?

12. What does Canada’s public healthcare system say about how our society values social programs?
What does the United States system of private healthcare say about how their society values social programs?

14. Social Programs in the U.S.
Federal and State governments can make legislation regarding social programs.
There is no differentiation of responsibilities as there is in Canada.
In general, federal laws take precedence.
Historically, the U.S. governments have found less reason to support social programs on the same level as the Canadian and Provincial governments.

15. Taxation and Social Programs
Governments collect taxes to pay for the services it provides to its citizens (that’s how they raise money!)
In Canada, citizens pay two kinds of taxes; income tax and sales tax
Income Tax- based on a percentage of a person’s income… the more you earn, the more you pay
Sales Tax- tax paid at the time of buying a product or service, and based on a percentage of the price of the product or service
GST- Goods and Services Tax; a federal sales tax in Canada

16. What do Taxes Pay for?
In Canada and Alberta, your tax money (yes, YOUR tax money) goes towards:
Recreation and culture
Health
Environment
Education
Debt reduction
Foreign affairs and Aid
Transportation
Social Programs
Defense
Resource Conservation

17. Taxation in Canada
A policy of a political party of government about what to tax, how much to tax, and how to spend tax money
Tax base- all the economic activity in a society, taxed by the government to pay for services
Open text to p. 289 to see
Canada’s Taxation Model

18. Taxation in Canada
Some people avoid paying taxes, or don’t tell the truth when they file taxes. This is called:
Tax evasion: misrepresenting what you earn to avoid paying tax (p )
This contributes to the “underground economy” or “black market”
Why does that matter?

19. Taxation in Canada
Since the government uses the tax money to fund social programs, the more money, the better. If anyone hides money from the government, there is less money to be used that could potentially be to your benefit. In 2012, total underground activity in Canada was estimated at $42.4 billion

20. Effects of the Underground Economy
Unpaid taxes mean less money for programs, such as health care, childcare, employment insurance, and pensions
The underground economy also undermines the competitiveness of businesses and individuals because it offers an unfair, illegal advantage to those who fail to comply with Canada's tax laws. It undermines the integrity of our tax system
In addition to fines and jail time, people found guilty of tax evasion must pay the taxes they owe, as well as interest and penalties
Participating in the Underground Economy robs the tax base of needed funds for schools, hospitals, and more. 

21. (p. 282 –Fed/Prov Spending)
(p. 282 –Fed/Prov Spending)

22. Government in the Economy
Along with social programs, we have seen that the government uses our tax money to fund other ventures as well:
Example: Canadian Film industry
Example: CBC Television/Radio
Example: Business subsidies or “bailouts”
2009: Banks got $114B from governments during recession: CIBC, BMO, and Scotiabank are examples

23. Canadian Values and You!
What are values?
Values are beliefs about what’s important:
Values influence your opinions and help you make decisions that affect your quality of life.
Canadian society is shaped by shared values, which shape our social programs and political party platforms (influenced by many things: family, school, religion, media and life experiences)

24. Both the Canadian and United States governments support social programs to a certain extent. However, due to the different shared values of each nation, their social programs are not the same.

25. Canada
The general shared value in Canada is to support all citizens through taxes (i.e. healthcare, pensions, income assistance)
In Canada our shared value (or political philosophy) of paying high taxes is to contribute to the well-being of all citizens (Social Welfare).
Our government collects our taxes and supports our Social Safety Net.
United States
The general shared value in the US is that individuals should support themselves (i.e. healthcare, pensions, income assistance)
In the US their shared value (political philosophy) of paying low taxes, and citizens will take care of themselves.
The government taxes them less so citizens can have more money and pay for services they need out of pocket.

26. Welfare State
A welfare state is a concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens.

27. Political Party Values
List examples in the political platform chart that are examples of social programs? (p.287)
To what extent do they reflect the same or different values?
Social Program: services provided by government to reduce economic inequalities and promote the well-being of citizens.

28. The Economic Continuum (p.288)
Planned Economy
More Government Involvement
Mixed Economy
Market Economy
Less Government Involvement
Collective
Individual
The more social programs a nation has = more government involvement
Which country has more social programs, Canada or the U.S.?
Which country has more government involvement in their economy?
Go To Page 290 in your textbook

30. Canada’s Healthcare System
Public System (funded through income tax, but in provinces such as B.C. (additional monthly charge, except for low income)
The government assures the quality of care through federal standards.
Out of Pocket: (Need for health insurance) prescription drugs, home care or long-term care, prescription glasses or dental care

31. Co-operative Commonwealth Federation (CCF)
The CCF was founded in 1932 in Calgary
In 1944, the CCF formed the first social-democratic government in North America when it was elected to form the provincial government in Saskatchewan, with Tommy Douglas as Premier.

32. Co-operative Commonwealth Federation (CCF)
The CCF aimed to alleviate the suffering that workers and farmers, the ill and the old endure under capitalism, seen most starkly during the Great Depression
Douglas introduced universal healthcare to Saskatchewan, a policy that was soon adopted by other provinces and implemented nationally by the Liberal Party of Canada during the administration of Prime Minister Lester B. Pearson

33. CCF to NDP
During the Cold War, the CCF was accused of having Communist leanings
In 1961, the CCF became the New Democratic Party (NDP) and Douglas became the leader of the party

34. Two years before his death in 2004, a CBC program named Tommy Douglas “The Greatest Canadian” (p.290)"