Quote:
Originally Posted by opendoor
I'm not sure how popular changes would be politically, but then again a failing healthcare system also isn't going to be popular. If it was up to me, I'd increase payroll/social security taxes and bump the GST back to 7%; that would generate a fair bit of revenue. Canada is 31st in the OECD in social security contributions as a % of GDP and 35th in goods and services taxes, so I think it's fair to say that there's room to increase there and it really wouldn't change a whole lot from the average person's perspective. The CPP changes basically went unnoticed by most people.
I'd also be significantly more aggressive about clawing back OAS and divert the savings to healthcare. The fact that a couple earning $170K in retirement can get full OAS is asinine. As is the fact that a couple earning almost $300K could get anything at all.
I'd also probably tie the eligibility in to wealth. There's no reason a retired couple earning $100K in retirement who are sitting on a paid off $2M house and a $1M stock portfolio needs a dime from the government. The fact that OAS and GIS are soon going to be a bigger expense than healthcare for the Federal government is clearly unsustainable, and there is zero argument that paying more money to seniors who don't need it will generate more public good than a stronger healthcare system.
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It's not that I disagree, because I don't, but people want every dime they can get "for free" from the government. Just the move by Harper to delay OAS to 67 was met with derision and anger. I've explained to a lot of people that you don't pay into OAS and it comes from general revenue, but they take the view that they've been funding this for decades with their taxes and when it's their turn, they want it.
It's political suicide to consider cutting this, at this point. Will that change when todays 40 year olds are ready to retire? I doubt it. People want all of their entitlements!