Sam

Canada’s Top Ten Secured Credit Cards

Last updated on October 17, 2022

When it comes to considering secured credit cards in Canada, you have quite an array of options to choose from. They come with different interest rates, annual fees, rewards, benefits, and minimum deposits. Here are some factors to consider regarding guaranteed credit cards, and a side-by-side comparison of Canada’s top ten!

What is a Secured Credit Card?

A secured, or guaranteed, credit card works on the same principle as a secured loan. With a secured loan, the lender has some tangible guarantee (like a home or car) that can be taken as collateral if the borrower should default on the loan. That’s why mortgage companies and lenders are willing to loan out large sums of money to people—because they know they’ll get either the money (and interest) in payment, or else they’ll get the property that was put up to secure the loan.

In the case of a secured credit card, the collateral is a sum of money you deposit when you are issued the card. The lender can be confident that you’re not a risk, because they already have your money in hand.

What Are Secured Credit Cards Good For?

So why even get a secured card? If you have the cash-in-hand sufficient for a deposit, you could just use your cash, right? Well, maybe not. You can’t use cash to purchase merchandise online, to make reservations, or even to pay some bills. Where a check or credit card is required, you’ll be out of luck if you don’t have a bank account or a card.

If your poor credit prevents you from qualifying for a regular credit card, or if you don’t yet have a credit history in Canada, you can still enjoy the convenience of paying for goods and services that require credit cards. You can also use that card to build (or rebuild) that credit score so you qualify for bigger things in the future.

Rebuilding Your Credit with a Secured Credit Card

If you’re looking to repair your credit rating, a secured credit card is one of the best tools at your disposal. You might think it’s wiser to “play it safe” and use cash, but that actually hurts your credit score. You actually need credit transactions in order to build up your score, so it’s important to use your secured card with intentional care.

Make sure that you make all your payments on time. That’s the number one thing you can do to repair your credit. A late payment of even a few days will undo a lot of your work toward credit repair. After a period of time making punctual payments, however, you will see your credit score improving visibly.

Top Canadian secured credit cards

Refresh Secured Card

* Annual fee: $12.95
* Interest: 17.99%
* Maintenance fee: $3/month
* Credit limit: $200 – $10,000
*This card is no longer offered. Check out Refresh Credit Builder Loan instead. This Secured Card from Refresh is easy to get and is a great option for people with less than perfect credit. It’s important to mention that no credit check is required to get approved. Clients are asked to provide personal information, email, choose a credit pack that matches their needs, and provide government issued ID and banking details. They also have to provide security deposit of at least $200. The main benefit for users is that timely payments are reported to the credit bureaus and this ultimately helps rebuilding your credit. There are also helpful videos offering financial advice.

Neo Secured Card

* Annual fee: $0
* Interest rates: 19.99%-24.99%
* Rewards: 1% minimum cashback, average 5% cashback at partners
This card is a great option for those who may have a lower credit score or are looking to begin their credit history. Neo guarantees immediate approval with no hard credit checks. The card requires a low security deposit of $50 with no monthly or annual fees, regardless of your current score or history. This means that you can start building your credit score quickly and with ease, even if you don’t want to spend a lot. Neo offers an average of 5% unlimited cashback² at their thousands of partners. You can also get up to 15% cashback² on your first purchase across participating partners, along with 1% cashback with all other purchases.

Peoples’ Trust Secured Credit Card

* Annual fee: $70
* Interest: 12.99% on purchases, 24.5% on cash advances
* Minimum required deposit: $500
The relatively low interest rate on this card makes it attractive to people who might be carrying a balance on the card. Applicants need to have a bank account and a verified income in order to apply for this card. This card charges a fee of $5 for cash advances, and a $5 fee if you overreach your credit limit. *Please note that this card is no longer available.

Home Trust Secured No Annual Fee Visa

* No annual fee
* Interest: 19.99%
* Minimum required deposit: $500
This card is ideal for people who expect to pay their balance in full every month. The interest rate is higher, compensating for the lack of annual fee, but this won’t affect you if you’re going to be paying your balance in full every month. The Home Trust card enables you to add another authorized user, and its credit limit may be as much as $10,000.

Home Trust Secured Low Interest Visa

* Annual fee $59
* Interest: 14.9%
* Minimum required deposit: $500

Of the two Home Trust cards, this version is preferable for people who might be carrying a balance from month to month, because the interest applied to that balance will be lower with this card. Applicants need to have a bank account in order to apply for this card.

Capital One Guaranteed Secured MasterCard

* Annual fee: $59
* Interest: 19.8%
* Minimum required deposit: $75

This easy to get credit card has one of the lowest minimum deposits, so it’s a good choice if you don’t have the $500 required by many of the other card companies. Its uses are less advantageous, since it has both an annual fee and a high interest rate, but it’s an option that’s open to you if you can’t afford the bigger deposit to get started.

Vancity Enviro Secured Visa

* No annual fee
* Interest: 19.5%
* Minimum required deposit: $500

Vancity offers a variety of extra perks, including insurance for travel accidents, price protection, and insurance for lost baggage. The card also has a system of reward-points for spending, called My Visa Reward Plus. The rewards include options like travel, redeeming for purchases, and charity donations.

The Vancity line of Classic credit cards includes several combinations of annual fee and interest rates, allowing you to choose the best solution for your situation. The options range from no annual fee and higher interest of 19.5% (for people who don’t plan to carry a balance) to a card with a $50 annual fee with lower interest of 11.25%.

Secured Credit Cards Offered by the Big 5 Canadian Banks

Secured cards are offered by all of the “Big Five” Canadian banks, and with relatively similar features. You will find that it’s difficult to uncover information on these cards online, and almost all of them require you to apply in person at the branch office.

You can inquire about details at the branch nearest you—and that’s not a bad thing. Although we’re accustomed these days to be able to do almost anything online, there’s something to be said for a face-to-face conversation with an expert who can talk to you about the pros and cons and details of the card for which you’re applying. So take the information below if it helps you to decide on which bank you’d like to visit, but know that any of these five banks will likely require you to apply in person.

Royal Bank of Canada (RBC) Secured Credit Card

* Annual fee $20
* Interest 11.99 on purchases & cash advances
* Minimum required deposit: $500

This low interest card with its modest annual fee is well suited for people who expect to be carrying a balance from month to month. Its optional extra features include travel insurance, roadside assistance, credit monitoring, and automatic payment options.

The RBC secured credit card charges fees of $3.50 for a cash advance ($5 if you’re out of the country) and an overlimit fee of $29 per statement period if your balance goes above your credit limit.

Bank of Montreal (BMO) Prepaid Credit Card

* Annual fee: $6.95
* No interest

The Bank of Montreal uses a prepaid model as its secured card option, meaning you can choose what amount you’d like to load to the card. It gives you more flexibility upfront (you don’t have the $500 minimum many other cards require) but doesn’t allow you to spend more money than you have on the card, or to take cash advances. The card itself operates much like a debit card, but without the associated checking account.

Toronto-Dominion (TD) Secured Credit Card

* Annual fee: $29
* Interest: 19.9%
* Minimum required deposit: $500

To apply for a Toronto-Dominion card, stop in at a TD branch office for an application. Your credit limit will be equal to whatever amount you are approved for, and deposit up front. If you maintain your TD secured credit card successfully for seven consecutive months, you can be eligible for an unsecured card as the next step toward repairing your credit.

Canadian Imperial Bank of Commerce (CIBC) Secured Credit Card

* Annual fee: $29
* Interest: 19.9%
* Minimum required deposit: $500

Like the TD card, you will need to apply in person for a CIBC secured credit card, by stopping in at a TD branch office for an application. Your credit limit will be equal to whatever amount you are approved for, and you make the deposit up front.

CIBC will give you a card for a specific term, usually two years. At the end of the two years they’ll refund your deposit—and by that time you will probably qualify for an unsecured card if you’ve used your secured card wisely.

Scotiabank Secured Credit Card

* No annual fee, no balance transfer fee
* Interest: 16.99%
* Minimum required deposit: $500

The no-fee Value Visa card is a great option if you’re looking to transfer balances from other credit cards. There’s no fee for balance transfer, and the introductory APR is a low 3.99 percent for the first six months. (That rate goes up to 16.99 percent after the introductory period, so try to pay off your balance before you hit the six-month mark.)

In Conclusion

Secured credit cards are the best way to improve your credit score, or to establish one if you are new to Canada and don’t have a financial history in this country. With your secured credit card you will enjoy all the benefits of credit card membership, like making purchases online and over the phone, or accessing cash from ATMs.

Your life will feel easier and your daily transactions will be smoother once you have a secured credit card at your disposal. Enjoy all the advantages of having a card, like being able to make reservations or purchase items online. And build your credit score as you go, by making sure to handle your card finances wisely.

Your secured credit card can serve as a stepping-stone to bigger things, like unsecured cards, car loans, or even a mortgage. Used wisely, the secured credit card is a gateway to your future. Let your credit score soar!

Legal Disclaimer

² See Merchant web site

5 Cyber Safety Tips to Protect Yourself from Online Threats

Sam 3 Comments

As the number of Internet users has surged in recent years, so have the security risks and cyber threats, in particular. With the explosive growth of social media networks, more and more people make their personal and business information openly available. As well as data leakage and theft, cyber threats to watch for abound, including hacking, phishing, ransomware, and insider threat. Fortunately, there are plenty of ways to protect your data and identity online and avoid getting into trouble.

Avoid Phishing Scams

Phishing scams make use of different methods to steal credit card numbers, login credentials, and other sensitive data. This can be done through malicious emails and URLs, text messages, or fake tweets or posts that encourage users to download malware or share personal information. To avoid becoming victim of scammers, you should never click on unsecure links or open attachments or emails from an unknown sender. Stay away from anyone requesting donations for causes you know nothing about and anyone offering lucrative job opportunities or money.

Never Use Weak Passwords

The problem with passwords is that many people choose easy ones like 56789 which can be easily decoded or cracked. Also, there are different databases with lists that hackers use to guess and attack passwords. To protect yourself online, you should never use a number, word, or phrase that hackers can associate with your employer, phone number, home address, child or spouse’s name, or your first or last name. Instead, only use passwords that are difficult for cyber criminals to decipher, like using special characters, mixing numbers and letters, and combining lower and uppercase letters.

Avoid Unsecure Websites

Before disclosing sensitive information or making a financial transaction, you should always check whether the website you are about to use is encrypted. Encrypted websites have an extra “s” (https) as well as trusted security lock symbols. You should also check their contact information and privacy policy to ensure the website you’ve come across can be trusted. Safe websites display their return policy, physical location, phone numbers, email address, and other details that you would need should you require assistance. Also, make sure you read their privacy policy and how your personal data is protected, used, and collected.

Keep All Devices Up to Date

Having the latest operating system, browser, and security software is one way to ensure you are protected against malware, viruses, and other security threats. While security software does not offer protection against every single threat out there, it can detect most types of malware. Antivirus software offers many advantages should you bother to install the newest fixes they have. It will protect your computer from viruses that cause frequent crashes and data loss, delete or damage files, and slow down your device. You also need a firewall that monitors all outgoing and incoming traffic from your device and network. Combined with security software, firewalls monitor every piece of data or file that is transferred online to another network.

Educate Yourself and Your Family

You should take time to educate yourself about some common security threats that target online users and their personal and financial information. Such are, for example, SQL injections, malware, denial of service, emotet, and man-in-the-middle attacks. Malware can take different forms, including worms, viruses, ransomware, and spyware that can make your operational system inoperable, transmit data, and block access to network components. Emotet malware is a more advanced type of Trojan that is mainly spread through spam email and can easily spread to connected devices. The infection may arrive in different ways such as a malicious link, macro-enabled document files, or a malicious script. The software gains access to your contact list to spread itself to clients, colleagues, family, and friends. Everyone can be the target, including government agencies, businesses, and individuals, with cons stealing financial data, banking logins, and Bitcoin wallets.

New Cybersecurity Threats to Watch for

In today’s technology-driven world, data storage on devices and the Internet of Things provide an access point for cyber criminals. The Internet of Things refers to devices that are equipped with software, processing capabilities, and sensors to connect and communicate with other devices. Cyber security reports show that criminals are increasingly targeting IoT and smart home devices, including connected mobile phones and baby monitors, voice assistants, and smart TVs. By gaining access to your Wi-Fi, criminals can also access your website passwords, bank statements, medical records, and other sensitive details.

In fact, the explosion of data has resulted in huge amounts of data stored on mobile devices, computers, and laptops. Using portable devices, in particular, increases the risk of network-based attacks. Such portable devices include both smart and simple media devices that transfer data. Simple media devices are, for example, music players, DVDs, media cards, and jump drivers that can transfer data through a wired connection. Smart media devices include e-readers, gaming devices, and tablets that use a non-cellular or wired connection to transfer data. They are typically used to download books, music, or applications, browse the Internet, or access email. Smart devices can infect your network or computer when used to download applications and games. The problem with smart devices is that users often store their client information or bank credentials on devices where they also use untrusted applications. Finally, a potential security risk is also the fact that smart and storage devices are portable and small in size. This means you can easily leave them in the library, cab, train, or café. If you use them to store personal financial or proprietary client information, you can easily become victim of cyber criminals looking for sensitive information to pilfer.

Working in Canada Post-COVID

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Covid-19 has transformed how we live, travel, study, and work, and do business. Navigating the pandemic and staying afloat has been a major challenge for many businesses. Due to the pandemic disruption, many have been forced to adopt new performance, management, and planning strategies to cut costs, improve efficiency, and keep operations going. In many cases, this has left their stores, manufacturing facilities, and offices empty.

More than a year and a half through the pandemic, the world is a very different place to live in. From working from home and flexible hours to following a hybrid home-office model, companies are rethinking where and how to operate. Evaluating their operations, many businesses choose to save on real estate and office expenses. With employers offering fully remote opportunities, employees increasingly choose to buy real estate further away from their offices, which has an impact on real estate demand in remote locations.

Remote Work

According to Statistics Canada, about 30 percent of employees have worked from home in 2021. As over 75 percent of Canadians prefer the hybrid model, remote work is likely to outlast Covid-19.

Businesses’ office leasing plans also offer insights into what the future of work might look like. Most companies plan to reduce their office space by around 20 percent. Under this work model, some 70 percent of employees will be working in the office and 30 percent from home at any given time. Insecurity about when the pandemic will end also plays a role. Businesses are reluctant to bring employees back again only to find out that they need to resort to a remote work model in the face of a new outbreak. One thing is certain, however, when it comes to the future of work. Today, we have more openness and flexibility that we had before the onset of the pandemic.

Commercial Real Estate

According to Desjardins Securities’ chief economist Jimmy Jean, commercial real estate is one of the sectors that will be the hardest hit. With many working from home, there will be fewer people in city centers to buy coffee, snacks, or clothing. This will have major implications for small businesses operating near office buildings. The big question is what is going to happen to cities and major urban districts if work remains online going forward?

The shift to remote work is expected to reduce spending in major urban areas due to the smaller number of commuters. An estimate by researchers at the Mexico Autonomous Institute of Technology indicates that spending could decrease by up to 10 percent compared to 2019. The shift to remote work has already affected the value of real estate in city centers, along with sales activity and volume. At the same time, commercial real estate is a major source of tax revenues in large cities.

One of the challenges that lies ahead is how to put commercial spaces to good use post-pandemic. The likely scenario is that some cities would do better than others. The ones that make a successful transition might offer different job opportunities such as entertainment businesses bringing residents and visitors into city centers.

Real Estate in Remote Locations

As the nature of work has changed, workers are increasingly moving to new locales, including remote locations. Many Canadians have come to realize that working from home is more enjoyable, convenient, and cheaper than transit rides and traffic jams. Recurrent lockdowns and spending time in isolation also provoked many to reflect on what is really important for them. And one of the things that is important is more space. For many, real estate prices in remote locations are cheaper, making mortgage payments more affordable. As a result, small towns across Canada experienced a housing boom all of a sudden and due to remote work capabilities.

One of the unintended consequences of the ongoing pandemic is a large-scale exodus of remote workers to the countryside or the so-called secondary markets. Places like the Yukon Territory, the Okanagan, and the East Coast have become hot markets, with workers moving from traditional hubs of industry and finance to small towns such as Lethbridge, Barrie, and Charlottetown.

A recent report by RE/MAX shows that cottage prices in Muskoka, Ontario have increased by over 20 percent in 2021. Real estate worth $350,000 before Covid-19 experienced a daily $200 increase in value during the pandemic. While Muskoka is just one example, many once-flagging areas, retirement communities, and tourist centers have experienced housing booms. Real estate on the Niagara Peninsula saw price increases of 19 percent, while cottages and homes in Collingwood spiked by 19.5 percent. Even places like Windsor, where real estate cost $175,000 on average saw price rises of 21 percent, with homes now priced at about $406,000. The fact is that small cities across Canada saw a housing boom, and not just in Ontario. Early market research showed that real estate prices would increase by 5 percent by the end of 2021, with price gains of up to 27.3 percent for single-detached homes. This trend is mainly due to families relocating to less-dense cities and municipalities. And in a world without live entertainment and travel, many were able to save cash for a down payment. A contributing factor is Canada’s historically low interest rates, with rates going down every time when borrowers choose to refinance their mortgage.

Wage Inflation

According to finance experts, wage inflation could soon turn into a serious problem for the Bank of Canada. The bank announced plans to keep 2 percent inflation targets, with current rates at 4.4 percent.

Wage increases result in higher costs for businesses cross sectors, making goods and services more expensive for consumers. As a rule, wage inflation does not result in an improved purchasing power or better standard of living because consumer goods become more expensive. Businesses are forced to increase wages, eventually causing an inflationary spiral and imbalances in the labor market.

The Future of Work Post Covid-19

The pandemic has brought changes to where and how we work and affected labor markets across the globe. Yet, this one-in-a-century health and economic crisis is not only a challenge but an opportunity for businesses and employees to redefine the future of work. Moving forward, employment in some sectors is likely to increase, including STEM professionals, technicians, healthcare workers, and health aids. Employment in other areas such as office support and customer service is likely to shrink. Whatever the case, businesses have the chance to redefine their workplace and workforce by shifting their focus to specific responsibilities, tasks, and related skills rather than entire jobs.

Canadian Careers with Bright Prospects Post-COVID

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Covid-19 accelerated the shift to digital and remote work, along with trends like automation and e-commerce. The onset of the pandemic also had a significant impact on high proximity occupations in areas such as leisure and travel, manufacturing, onsite customer service, and personal and medical care. Work areas involving high physical proximity may require the adoption of AI and automation to increase both safety and productivity.

Remote Work

A recent KPMG study reveals that the majority of Canadians (77 percent) would like to work both in the office and remotely post-Covid-19. About 67 percent of respondents also said they were satisfied with working from home.

The good news for many is that hybrid and remote work are likely to become the new norm. Careers with bright prospects and flexible schedules abound, from workplace environment architect and work-from-home facilitator to mortgage underwriter and director of accounting.

Automation and AI

Many companies are in the process of adopting and deploying AI and automation in manufacturing plants, call centers, grocery stores, and warehouses. The goal is to cope with increasing demand, reduce workplace density, and improve worker safety. Sectors with high levels of physical proximity are expected to be the biggest adopters of AI and automation, including healthcare, manufacturing, and retail.

The acceleration in adoption of AI and automation has already resulted in a growing demand for jobs such as computer system analyst, hardware and software engineers, and data engineers and scientists. In-demand AI jobs also include:

Software architect
Machine learning engineer
Full stack developer
Information research scientist
Big data architect
Business intelligence developer
Site reliability engineer

Career paths with bright prospects include natural language processing, user experience, data analytics, and data mining and analysis. AI professionals are tasked with building models, finding patterns and anomalies, interpreting and analyzing datasets, developing virtual assistants and chatbots, and more.

The Virtual Economy

Virtual transactions are also likely to soar in the coming years, including streaming entertainment, online banking, and telemedicine. Virtual practices are expected to continue above pre-pandemic levels, with in-demand occupations such as streamer, influencer, community manager, channel editor, and influencer talent manager.

As the pandemic caused a surge in e-commerce, the digital marketplace offers a wealth of job opportunities. Occupations with bright prospects are:

Virtual assistant
Customer service representative
Business analyst
Marketing specialist
Digital operations manager
Supply chain manager
Director of commerce
Online merchandizer
Customer satisfaction manager

E-commerce occupations are already in high demand, along with skills such as market automation, search engine optimization, advertising, data analysis, and data collection and testing.

Jobs in Manufacturing

As Canada has already reopened its economy, jobs in manufacturing, procurement, supply chain management, warehousing, and construction have gained popularity. In the short term, occupations that are likely to see a surge in demand post-Covid-19 include warehouse inventory personnel, production supervisors and leads, and supply chain management jobs.

Medicine

During the ongoing pandemic, registered nurses, laboratorians, and epidemiologists have been on the front lines. The development of new vaccines and treatments will continue to support good job opportunities for pharmacologists, bio-information professionals, virologists, and immunologists. With population aging, the need for eldercare is projected to increase significantly between 2021 and 2028. Occupations that are expected to be in high demand post Covid-19 also include:

Speech language pathologist
Nurse practitioner
Clinical laboratory technician
Physician assistant
Occupational therapy assistant
Personal care and home health aids
Dental assistant

Demand for online healthcare will continue after the pandemic as patients increasingly seek ways to safely access medical services and care. A survey by the Canadian Medical Association shows that 46 percent of Canadians prefer telecare as an entry point to the health system. The vast majority of respondents or 91 percent said they were satisfied with telehealth services. As many Canadians accessed healthcare remotely, via mobile or video technology, virtual care is likely to become the norm, at least in the near post-Covid future.

Jobs That Might Vanish Post-Covid-19

Automation, AI, e-commerce, and the shift to digital might make some jobs redundant or extinct. The prolonged pandemic also triggered shifts in work preferences that are likely to stay. According to a recent report by the McKinsey Global Institute, about 1/5 of employees might end up working remotely long-term. About 20 percent of business travel is also unlikely to return to pre-pandemic levels. What this means is that downtown shops, restaurants, and hotels might require fewer jobs.

Also, job automation tends to accelerate during recessions, with businesses looking for ways to cut costs by implementing new technologies. This is a likely scenario for manufacturing plants and warehousing facilities that will still have directors and engineers but fewer individual workers.

Other occupations that might vanish due to improved technology include:

Parking enforcement workers
Locomotive firers
Postal service mail sorters
Mail superintendents
Telephone operators
Data entry keyers
Legal secretaries
Photographic process workers
Weaving machine operators

Going Forward

According to the International Labor Organization, 23 million jobs will vanish and never return. Also, a 40-60 home-office split during work days is likely to become the new normal. The global pandemic, will have a long-lasting impact on economies, businesses, and jobs around the world. Recent job postings also offer insights into what jobs are going away and what are emerging. Experts note a decline in postings seeking pet groomers, beauty consultants, food service workers, human resources personnel, and administration assistants. Jobs in demand, on the other hand, are positions in essential services, agriculture, healthcare, and IT. Millions of people who lost their jobs will not return post-pandemic, clearly showing the importance of retraining and upskilling.

Canadian Elections – How would Liberal Party or Conservative Party win affect your wealth?

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Following one of the shortest campaigns in Canadian political history, Election Day will be September 20. In an attempt to appeal to voters nationwide, political leaders have announced plans to restart the economy amidst a one-in-a-century public health and economic crisis. Each party has detailed measures on issues such as taxes, child care, and jobs, affecting businesses, the economy, and your wealth.

Jobs, Post-Covid-19 Recovery and Proposed Measures

Both the Liberals and Conservatives have pledged to create one million jobs that have been lost due to Covid-19. As part of the Canada Job Surge Plan, the Conservative Party promised to pay up to 50 percent of the wage of new hires for a period of six months. All Canadian businesses will be eligible to apply for this subsidy. The Conservatives also pledged to implement credit incentives, tax breaks, and child care tax credit to support low income households and to create more jobs through loan financing.

Similarly, the Liberal Party has pledged to give credits to businesses that bring on new hires, thus extending the Canada Recovery Hiring Program to March 31, 2022. The Liberals also promised to create work and training opportunities for some 28,000 people who would aid medium-sized and small enterprises in implementing new technology in the workplace. The Liberal’s election platform covers all announcements made on employment issues, including workers’ right to disconnect, extending the work-from-home tax, and a new Employment Insurance benefit for self-employed individuals.

Taxes

The Liberal Party has announced plans to raise corporate income tax on insurance businesses and financial institutions with annual revenue of $1 billion. The Conservative Party promised to strengthen the role of the Canada Revenue Agency to ensure it can combat wealthy tax evaders.

Child Care

The Liberals plan to invest $30 billion over a 5-year period into a national child care system, which is a major part of their spring budget. The government already signed deals with 8 territories and provinces to reduce fees to $10 per day. The goal is to cut fees by 50 percent for child care and early learning in 2022. The plan also extends $2.5 billion in funding toward Indigenous child care and early learning.

In contrast, the Conservative Party would allow the territories and provinces that signed deals to keep the funding and would introduce a refundable tax credit for low income families. To cover child care costs, families with an income of $50,000 would be entitled to get $5,200 while those with an income of $30,000 would receive up to $6,000.

How Both Parties Fare

Both the Liberal and Conservative platforms cover measures to support Covid-19 recovery, create new jobs, and support businesses. The Liberal Party’s proposed measures translate into $78 billion in new spending over the next 5 years, adding $70 billion to the federal debt. While Trudeau insisted that the plan is transparent, prudent, and responsible, there is no timeline to balance the budget. Additionally not all promises have been costed by the parliamentary budget office. The budget deficit starts at $156.9 billion in 2021 and is projected to fall to $32 billion in 2025 – 2026.

According to the Institute of Fiscal Studies and Democracy, the spending measures proposed by the Liberal Party are relatively straightforward to implement but there is no discussion on economic and fiscal risks in the platform.

The Conservative Party has pledged to run a disciplined government and balance the budget in 10 years. If they succeed in forming government, the deficit would start at about $168 billion and fall to $25 billion by 2025 – 2026. One item on the Conservative agenda that will help curb the deficit is their child care platform. Instead of the national child care system introduced by the Liberals, the Conservative Party proposes a refundable tax credit in place of the existing child care expense deduction. The measure will cover up to 75 percent of child care expenses for households in the lower-income bracket.

Additionally, analysis by the Parliamentary Budget Officer indicates that a Conservative government could recoup billions of dollars by extending additional funding to the Canada Revenue Agency to enforce international taxation and taxation of large corporations and multinational firms. Such measures would result in additional $3.5 billion in revenue.

An issue that voters across the political spectrum find important is fair taxation and tax increases for wealthy corporations. A new Abacus Data poll reveals that 89 percent of Canadians believe a wealth tax should be part of Canada’s post-Covid-19 economic recovery. The overwhelming majority or 92 percent of respondents also believe it is important to prevent large corporations from booking profits in tax havens.

Most Canadians, including half of the Liberal voters, share that the Trudeau government could have done more to ensure that large corporations pay their fair share, thus helping to reduce income inequality.

In a statement, press secretary Katherine Cuplinskas noted that the government has already taken steps to reduce stock option deductions, implement a luxury tax, introduce a tax on multinational digital corporations, and implement tax on non-resident unproductive use of Canadian domestic housing. Yet, it seems that voters largely feel the Liberal government has not done enough to introduce measures that support income equality and help protect their wealth. Over 30 percent of Canadians are unsure which party’s platform would best support action in this direction. According to program director for the Broadbent Institute Katrina Miller, many Canadians are waiting to see which party is ready to make a commitment that voters believe in. In this year’s election, taxing wealthy corporations and fair taxation is an issue that both Liberals and Conservatives “should be looking to double down”, as Miller concludes.