The affects of government budgets

on inequalities

By

Christine Saulnier, PhdNova Scotia Director

Canadian Centre for Policy Alternatives

The Growing Gap

The Rich Families and the Rest in NS

Source: Kyle Buott, Judy Haiven and Larry Haiven, Labour Standards (Halifax: CCPA-NS, 2012)

Productive Workers not Fairly Rewarded

Source: Kyle Buott, Judy Haiven and Larry Haiven, Labour Standards Reform in NS (Halifax: CCPA-NS, 2012)

Losing Ground: Gender Equality in NS

Women in Nova Scotia:•experience a 71% pay equity gap; •earn an avg weekly wage of $200 less than male counterparts; •are the majority of workers in 8/10 of lowest paying jobs; •are the minority in the ten highest paying occupations; •constitute about 60 % of minimum wage workers; •represent fewer than 5% of active apprentices, an increase of only .5 % in 15 years. Source: www.wacns.ca

What to look for in the budget that would advance equality

1. Funding to increase secure employment at living wages

2. Funding targeted to achieve gender equality

3. Funding to address the root causes of poverty and provide dignity to those living in poverty

4. Adequate revenue to provide quality services

Nova Scotia Budget Highlights

3% cut to Post Secondary: -$10 m

1.5% cut to School Boards:-$17 m

Low income assistance: $8.3 m

Personal tax credit inc: $7.5 m

Energy Rebate: $102 m

Small business tax cut: $10 m

Large Corp Tax: 16.3 m ($92 m)

Total Dept increase: $338 m 3.1%

Total cut over 4 years: $772 m

Federal Budget HighlightsCut Departmental Spending -$1.8 billion this year, $3.5 billion next year, and to over $5 billion per year from 2014-15.

19,000 jobs up to 50,000 include crown corps agencies and private sector

increase in the age of eligibility for OAS and GIS from age 65 to 67,

 “strengthen and clarify what is required of (regular EI) claimants”

6% cut in fed housing programs

National Council on Welfare eliminated ($1.1 m)

Community Access Program funding eliminated

Canadian Revenue Agency will crackdown on registered charities who engage in political activities ($8 mil).

working income tax benefit (no increase in past 3 years)

corporate tax down to 15% (from 16.5)

Public Sector Cuts Hurt Women More

•Women in NS compose 67% and 85% of education and health employment, respectively; and 63% of all public sector jobs. These public sector jobs:

• represent quality jobs, where pay is on average higher than private sector jobs, with smaller pay equity gaps;

• are unionized and provide good benefits to women often including extended health and maternity benefits. In addition, more women in the public sector have pensions (2/3 v 1/3 in the private sector)

TAXES: NO LONGER PROGRESSIVE?

From Marc Lee, Eroding Tax Fairness , www.policyalternatives.ca

Toby Sanger, CUPE; Sources: Informetrica Ltd, Centre for Spatial Economics, Finance Canada Budget 2009 (p. 240)

Alternative Federal Budget:THIS OR THAT?

THIS OR THAT?

CECI ou CELA?

Budget Choices Comparison NS Government Budget

3% cut to Post Secondary: -$10 m

1.5% cut to School Boards:-$17 m

Low income assistance: $8.3 m

Personal tax credit inc: $7.5 m

Energy Rebate: $102 m

Small business tax cut: $10 m

Large Corp Tax: 16.3 m ($92 m)

Total Dept increase: $338 m 3.1%

Total cut over 4 years: $772 m

CCPA NS Alt Budget

 Early Learning and Child Care:$45 m

Cut NSCC Tuition in Half: $16 m

Increase income assistance: $120 m

Total new revenue: $327.80 m

Reallocate: $142 m

Total new spending: $492.5 million

Plus Increase in Dept spending to cover inflation: $166 m

Promoting equality is in everyone's best interest

"a more long-term process that requires government officials to think about the economy in new ways that include the unpaid sector where much of women’s time and efforts are concentrated.“Isabella Bakker, Gender Budget Initiatives and Why They Matter in Canada (Ottawa: CCPA, 2006).

“Greater equality is the gateway to a society capable of improving the quality of life for all of us and an essential step in the development of a sustainable economic system.” Richard Wilkinson and Kate Pickett, The Spirit Level see www.equalitytrust.org.uk

WHERE TO FROM HERE?

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Greater equality is in everyone's best interest