Massive increases in unemployment in Canada in recent years have not resulted from personal inadequacy. Many workers have lost their jobs for reasons beyond their control and cannot find work because it is not available. Many people are on welfare because they are temporarily unable to provide for themselves, often due to some personal or economic crisis beyond their control.
The fact is that most poor people do work full or part-time -- over 60% of those heading poor families, over 70% of poor unattached individuals.* If we look at the people who are dependent on welfare, we see that about 37% are children. Another 16% are single mothers, many still caring for young children. If we look at the number of welfare cases, we find that about 24% are headed by people considered to be disabled.**
* National Council of Welfare, Poverty Profile 1980-1990 (Ottawa, 1992), p.56.
** National Council of Welfare, The Canada Assistance Plan: No Time for Cuts (1991), pp.6-8.
In Ontario poor people pay about $160 million in income taxes.* Having to pay income tax starts far below the poverty line. A single mother with two children in 1991 started paying federal tax when her income reached $11,601; a single person without dependents was taxed at an income level of $6,532. Although people on welfare don't pay income tax on their social assistance, they still pay sales tax, GST and property taxes. Refundable credits reduce the cost of this tax but don't cover the total tax paid.**
* Ontario Fair Tax Commission, "If You're Poor" fact sheet 3.3), Talking Fair Taxes (Toronto, 1995)
** Ontario Fair Tax Commission, Working Group Report: Low Income Tax Relief (Toronto,1992), pp.27-29.
All welfare rates are well below the poverty line. The highest rates are still 20% below; the lowest are 76% below the poverty line.
National Council of Welfare, Weltare Incomes 1992 (1993), pp.26,27.
Many live far below the poverty line and must spend all or most of their income on basic needs. Anyone who manages to feed and clothe a family on a very limited income already has budgeting skills.
A study conducted by a national auditing firm estimated fraud to be in the range of 3% of the Ontario welfare budget.* We have reason to believe that this estimate can be generally applied to other parts of the country. On the other hand there are estimates that income tax fraud is in the order of 20%.**
* Peat Marwick, Welfare Fraud and Overpayment: Final Report to the Ontario Social Assistance Review Committee (Toronto, 1987), p.ii.
** Investigative Productions Inc., Voices from the Shadows, documentary film broadcast on CBC September 15, 1992 (Toronto, 1992).
Most poor families have none, one or two children. Only 15% have 3 or more children under 18.* All children in Canada are assured a decent start in life. Recent studies show strong links between poverty and poor health and poor achievement at school. While infant mortality rates for all income groups are about half of what they were twenty years ago, according to the 1986 census the rate for the lowest income group was still about double that of the highest.** Children in poor families are more likely to suffer chronic health problems than other children.*** They are almost twice as likely to drop out of school.****
* Statistics Canada, pp.174,175.
** Canadian Institute of Child Health, The Health of Canada's Children: A CICH Profile (Ottawa, 1989), p.98.
*** CICH, p.101.
**** David P. Ross and Richard Schillington, "Child Poverty and Poor Educational Attainment: The Economic Costs and Implications for Society", in Standing Senate Committee on Social Affairs, Science and Technology, Children in Poverty: Toward a Better Future (Ottawa, 1991), Appendix 1, p.15.
According to per capita Gross Domestic Product (GDP), Canada is more prosperous than all European countries.* However, Canada spends less on social security and other income support measures (including Ul and welfare) as a share of GDP than most European countries.** Western European countries such as France, Germany, the Netherlands, and Sweden with economies not very different from ours have refused to tolerate high levels of family poverty.*** These countries provide more income and employment supports to help families with children.
* National Accounts of OECD Countries 1993 as reported in Right to an Adequate Standard of Living in a Land of Plenty, presentation to the U.N. Committee for Cultural, Economic and Social Rights by NAPO and the Charter Committee on Poverty Issues (Ottawa, 1993), p.8.
** Department of Finance Canada, Canada's Economic Challenges: Background (Ottawa, 1994), p.55.
*** Luxembourg Income Study (LIS) as reported in Canadian Council on Social Development, Economic and Social Welfare for Families and Children, (No. 1, June 1992). Other Sources: Campaign 2000, Ontario Prevention Clearinghouse, End Legislated Poverty, Social Planning Council of Ottawa-Carleton, Provincial Advisory Council on the Status of Women for Newfoundland and Labrador, Oxfam-Canada (St. John's), and Graham Riches. (March 1994)
Copyright © 1997 The National Anti-Poverty Organization (NAPO)