Ron Butler Profile picture
Aug 7 7 tweets 2 min read Read on X
The Massive Numbers Of Canada's Government Employees Is Unmanageable

Look at one department: CRA

59K Employees for 41M population

Comparisons:

90K Employees US IRS for 341M population
19K Employees Australian ATO 26M population
56K Employees Japan NTA 125M population

2/
There are some differences between the responsibilities of each of the Tax organizations in these counties but NOTHING that would explain the Mind Boggling size of Canada's CRA

This is just one example: the size of the Canadian Public sector is massive

The Biggest Worry:

3/
These are effectively permanent employees & we fund the Government payroll by super high taxation & even worse: Canada BORROWS to make the Government payroll

Yeah, we BORROW at interest to pay our employees

This is a sure path to economic destruction

What's the answer?

3/
Clearly FAR FEWER EMPLOYEES is the answer

If we reduced the CRA employee group by 20K people would taxes STOP being collected?

Clearly NOT

But would service to Tax Payers deteriorate radically?

How could it get worse?

Ever call CRA?

How fast was that call picked up?

4/
Once you got through to CRA were you passed on to another department for another 30 minute wait? And once you got through & explained your problem were you ever told that was STILL the wrong department?

Look there are some excellent professional people working at CRA

5/
But the way they operate the department is insane

How the hell could CRA ever justify having likely the largest group of people on EARTH to collect taxes that are 75% collected AUTOMATICALLY through payroll deduction, GST at purchase level & duties collected on some imports

6/
59K people working at something that's 75% purely automatic?

And most outrageous: Canada BORROWS money to make that payroll

It's insane

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Ron Butler

Ron Butler Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ronmortgageguy

Jul 30
Is The Federal Government's Housing Accelerator Fund Causing DECELERATION In New Home Starts?

Because it looks like it in some provinces

Firstly, what was the concept behind the Housing Accelerator Fund: Create more homes

The Fund used 2 systems to accomplish this

2/
- Provide $Billions$ directly to Cities & Towns to build subsidized housing for social purposes: poor people who need homes

- In order to get this money the Cites & Towns had to change Zoning Rules & drastically cut Red Tape to allow greater density on the same lots

3/
Allow 4 to 6 Units on a Single Family Lot

Even more on land directly adjacent to Public Transit

Cities & Towns mainly agreed because it was important to expand critical socialized housing for people in need

Many City Councils passed "Up-Zoning" allowing for more density

4/
Read 6 tweets
Jul 23
Unemployment Will Soon Become A Major Issue In Canada: It's Going To Get Worse

What makes Bank Of Canada Rate cuts a certainty is ongoing Job Losses in Canada particularly Ontario

Don't be fooled by Jobs Reports showing small rises in Unemployment it's going to take off

2/
The absolute certainty of Bank Of Canada continous rate cuts is simply an outcome of the dangerous Recessionery impact of Job Losses

And the Number One worry of all Bank Chief Risk Officers is NOT high interest rates: it's Unemployment

In my work we get calls every day

3/
And lately too many of the those calls revolve around what how to raise money from Home Equity to handle a job loss, to provide the money to survive until the next job comes along

Some people have excellent Severance Packages, some DON'T

Here's the ugly truth about layoffs

4/
Read 7 tweets
Jul 11
US Inflation Rate Falls: Stage Is Set For Expected Bank Of Canada Rate Cuts

US Inflation drops to 3% lower than expected

Before everyone starts microscopic over-analysis let's just move on to the real story: TREND

Because the future is much more important than the moment

2/
The important narrative is that as is always true in a Central Bank Rate Hiking Cycle: it takes 2 Years

We're here

Canadian & US economies are slowing: Canada with our 3 to 5 year mortgage renewal cycle feel the slowdown more intensely

That & our Batshit Crazy House Prices

3/
What's the future of Bank of Canada rates: DOWN

Maybe Tiff Macklem skips the next cut in a couple weeks but the odds just went up he cuts another 25 bps in this month

Chances of a total of 4 rate cuts this year also went up

Because the US Fed will likely cut more than once

4/
Read 6 tweets
Jul 5
Canadian Job Numbers All BAD News & The Worst Part: It's Just The Beginning

Unemployment Rate rises to 6.4% with negative job creation

Should we assume it will get worse? Yeah, we absolutely must assume that

Maybe much worse: right up to over 8%

What could make it better?

2/
The only truly dynamic force for new jobs in Canada is Government

For the last few years all levels of Government has been hiring enthusiastically

On the private side what sectors will likely keep shedding jobs:

Financials - layoffs will continue to trickle along

3/
Manufacturering - zero growth with the tiny exception of Government sponsored EV plants

Retail - Large Ticket has hit a real slump as Real Estate & New Construction craters

Transport - one of the worst years in Trucking in Decades

Services - discretionary spending slump

4/
Read 6 tweets
Jun 26
New Home Construction Grinds To A Halt In Ontario: How Bad Is It? BAD

New Condo Starts in the GTA are down 75% in May an unprecedented drop & Low-Rise (Single Family, Semi's, Towns) are down 65%

This will get worse as 2024 progresses

Let's talk about all of Canada

2/
Canada, in the midst of a Housing Crisis will likely see the New Builds in 2025 fall below 170K annually

That's 50K less than this year & compared to the pledge of Governments at all levels of 500K New Homes per year represents a mind bending disaster

This stuff is WILD

3/
Hundreds of Announcements from Ministers in Hard Hats & Yellow Vests insisting the Housing Accelerator Fund is the solution & BILLIONS committed to move the needle on Housing & in the final analysis: WORSE

Much worse

But not hard to understand

The reasons are simple

4/
Read 6 tweets
Jun 20
Don't Be Fooled By Reports That Housing Starts Are Going Up: Starts For Houses TO BUY Are Plunging

CMHC produced a recent report that New Home Starts are having a strong year

They don't tell you that 2024 is likely the biggest year for Purpose Built Rentals in decades

2/
The Federal Government through CMHC & the Housing Accelerator Fund has encouraged Multi-family Rental Development in the biggest surge since the 80's

Government got out of any involvement in Rental Development 35 years ago & have just returned to it in the last few years

3/
We all need to understand a huge chunk of the 240K housing starts CMHC says will happen in 2024 can NEVER be purchased

Another frightening statistic is Single Family starts: ridiculously low at just over 44K

Think about how small a number that is maybe 17K in Ontario

4/
Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(