Pandemic wage subsidies expected to top $100 billion

Pandemic wage subsidies expected to top $100 billion
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The Canada Emergency Wage Subsidy (CEWS) has been extended until June of 2021.

Costs associated with continuing the program, designed to help employers stay afloat through the government's COVID-19 lockdowns, will cost $83.6 billion by the end of 2020.

Blacklock's Reporter has the full story behind their paywall:

Pandemic wage subsidies will cost $83.6 billion by year’s end and are expected to surpass $100 billion this winter. The Department of Finance would not comment on the final cost.

A subsequent extension to December 31 “has been estimated to be approximately $83.6 billion”, the finance department said in a notice of amendments to Income Tax Regulations. The winter rebates are capped at 65 percent.

...“These amendments are intended to maximize employment during the post-pandemic economic recovery,” said the notice. The finance department did not reply to multiple requests for estimates on the overall cost of the program.

CTV reported on the estimated price tag this past July, before the 2021 extension was announced last week:

As of July 5, just under 19 million Canadians had applied for the benefit and more than $54 billion had been paid out.

The new $82.3 billion CEWS projection, outlined in last Wednesday’s fiscal snapshot, is a stark increase from the original $45 billion estimate.

As of July 6, 581,800 out of a total of 587,060 submissions had been approved. This equates to slightly more than $18 billion.

According to statistics posted by the Government of Canada, more than $42.63 billion has been paid out under the CEWS program since October 11 to more than 1,300,000 applicants.

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  • By Rebel News

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