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Seven reasons Canada's COVID-19 situation could worsen in the coming weeks – CTV News

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TORONTO —
This is not a bright moment in Canada’s fight against the novel coronavirus.

Nationally, the seven-day average of new COVID-19 diagnoses is as high as it’s ever been.

On Friday, Ontario announced its highest single-day total of new cases to date. On Saturday, it was Quebec’s turn. In Manitoba, nearly two-thirds of all known cases have been logged in the past month.

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Even some parts of the country less affected by the pandemic are showing a resurgence in virus activity. Prince Edward Island has recorded 13 cases of COVID-19 in the past 32 days – a worrying number when compared to the 16 cases detected on the island in the previous 127 days.

All of this lends weight to what politicians and public health authorities have been saying since long before the increases began: The virus will not disappear on its own, and Canadians’ individual actions may well determine whether the second wave is manageable or uncontrollable.

There’s a message of hope buried in that warning. But there’s also the reality that many important factors are beyond the control of individual Canadians.

Here are seven reasons why the recent increases in COVID-19 activity in Canada may only be the tip of the iceberg.

HOSPITALIZATIONS ARE RISING

When daily case counts started to trend upward, there was a persistent chorus arguing that it wasn’t as bad as it seemed, because hospitalization numbers weren’t moving with them.

However, hospitalizations are known to be a lag indicator. When case counts increase, it is a week or more before hospitalizations move in the same direction.

For most of the summer, the number of Canadian COVID-19 patients in hospital was actually decreasing day by day. That’s not the case anymore. There hasn’t been a single day with a declining hospitalization number since Sept. 16. Over the past two weeks, most days have brought an increase of at least 20 patients.

The number of hospitalizations in Ontario and Quebec has tripled in recent weeks, according to The Canadian Press, while British Columbia’s hospitalization number quadrupled in September.

“We certainly are getting a gradual and steady increase in the number of people who are seeking hospital care,” Dr. Matthew Oughton, an infectious diseases specialist at the McGill University Health Centre in Montreal, told CTV News Channel on Sunday.

Many experts believe the rising hospitalization numbers are a sign that the virus is again being spread to seniors and other vulnerable groups, after a summer during which it was most active in young adults – a demographic less likely to suffer severe symptoms.

CASES ARE A LAG INDICATOR TOO

The number of cases announced on any given day does not reflect the virus transmission situation on that day.

Accepted wisdom among epidemiologists is that it takes up to two weeks before changes in societal behaviour are reflected in the daily case counts.

That means that measures taken during the past week in response to the recent high numbers – think of Quebec placing its largest cities into ‘red zones’ and Ontario reducing the number of people allowed at gatherings – will not be reflected in the daily totals for another week or so.

“We may well see the numbers at least continue, if not climb, for another week before we even begin to see a bit of a slowdown,” Oughton said.

If the numbers continue to climb, governments may decide to impose harsher measures – but it will be another two weeks or so before those decisions have any effect on the daily numbers.

THE HEALTH-CARE SYSTEM MAY NOT BE READY

When most provinces enacted lockdown-like measures in the spring, the stated reason was that they were necessary to prevent hospitals from being overwhelmed by sudden influxes of large numbers of COVID-19 patients.

Now, case counts are back where they were at the height of the first wave and hospitalizations are also increasing – but governments clearly do not want to order businesses to close their doors once again.

As a result, concerns have been voiced by the medical community that there could be a fast ramp-up in the number of patients seeking COVID-19 care – and that the health-care sector may not be prepared for this. The Ontario Hospital Association recently wrote the province asking for a return to lockdown in the hardest-hit areas.

“Our health-care system is incredibly precarious at the best of times,” Dr. Ilan Schwartz, an assistant professor in infectious diseases as the University of Alberta,” said Sunday on CTV News Channel.

Most health-care professionals have stopped short asking for lockdowns to be re-enacted, despite clear worries about what may be ahead. A survey by the Canadian Medical Association found that more than two-thirds of community-based doctors are worried they won’t be able to obtain enough personal protective equipment to keep them and their patients safe.

Hard-hit Ontario has attempted to stem these fears, announcing last week that it plans to hire 1,400 nurses to work at hospitals and long-term care homes. However, it is not known how soon all those positions can be filled.

TESTING AND TRACING BACKLOGS

Wearing a mask is a great way to help reduce the spead of COVID-19, while washing your handsand physical distancing is a great way of protecting yourself.

But getting every single person on-board with all of those actions all of the time is virtually impossible. That’s where governments need to pick up the slack – and it has become clear through the pandemic that widespread testing, rapid processing of test results, and thorough contact tracing are the best way they can do that.

It may be a problem, then, that several provinces are finding it difficult to pull off effective testing and tracing.

Alberta recently introduced new testing criteria in an attempt to prioritize the most important potential cases. Testing capacity in Manitoba is low enough that some Winnipeggers have reported waiting in line for four hours or more, and others have driven an hour outside the city to get tested.

The worst situation of all may well be in Ontario, where the testing backlog routinely numbers in the tens of thousands, leaving some unable to get results for up to a week.

That creates another problem. The longer it takes for a positive test result to be known, the less effective contact tracing is.

Toronto Public Health, the province’s largest public health unit, announced Friday that it is now only performing contact tracing for the highest-risk scenarios – a far cry from the testing of all cases that helped some countries in other parts of the world beat back the virus.

“Ontario has lost control of COVID. I say that because we’re no longer able to do contact tracing. We’re no longer able to do testing in a reasonable period of time,” Colin Furness, an infection control epidemiologist at the University of Toronto, said Sunday on CTV News Channel.

Oughton said he would not be surprised if other jurisdictions followed Toronto’s lead in the near future, reducing their contact-tracing efforts because there are too many cases coming in for them to stay on top of each one.

THE VIRUS IS SPREADING INTO NEW AREAS

The northern half of Manitoba is an isolated place.

Many communities are an hour’s drive, or more, from their closest neighbours. Most of the rest are even less accessible than that, because they don’t have all-season roads. Anyone wanting to enter or leave the community has limited options: an ice road if the water has frozen over, a boat or canoe if it hasn’t, or shelling out for airfare.

In other words, northern Manitoba is a very difficult place for a virus to thrive.

There were three cases of COVID-19 detected in Manitoba’s northern health region in a nine-day span early in the pandemic. Then, for more than four months, there was nothing. Not a single case. The province even put a travel ban in place, restricting non-essential travel from Winnipeg and other southern communities because of fears visitors could reintroduce the virus.

All was going well. Then came the past week.

There have been 13 cases of COVID-19 in northern Manitoba since Sept. 27. Seven of them have been traced to one family in York Factory First Nation. There is an eighth case in York Factory and three other Indigenous communities have also reported active cases.

This is the most extreme example of a new phenomenon: COVID-19 showing up in remote parts of Canada where it had not been a problem before.

Nunavut has been hailed as a success story, making it to this point in the pandemic without recording a single case of COVID-19. But that could be changing. Two presumptive positive cases of the virus were detected two weeks ago at the Hope Bay gold mine, and seven more were reported last week.

Although the initial case is believed to have stemmed from an exposure outside Nunavut, the latest outbreak suggests that the virus has finally made its way to Canada’s most isolated territory.

THE GLOBAL PICTURE

Nunavut was able to avoid COVID-19 until recently by almost completely sealing itself off from the rest of the world.

Canada hasn’t done that, and that leaves it susceptible to COVID-19 arriving from abroad.

Despite a pervasive belief that the border is closed, there are a wide variety of exemptions that allow essential workers, Canadian citizens and permanent residents and their families, international students and others into the country.

More than 49,000 travellers entered Canada by air during the week of Sept. 21 to 27, according to the Canada Border Service Agency, including more than 16,000 passengers who are not Canadian citizens or permanent residents. Another 187,500 entries were recorded at the U.S. land border.

Everyone who enters the country for non-essential purposes must quarantine for 14 days. Not all travellers are following this rule, however, as news of various Quarantine Act violations makes clear.

This is particularly concerning because Canada is not the only country grappling with renewed COVID-19 activity – and some nations are reporting numbers that dwarf what’s happening here. France and Poland both reported record high daily case counts on Saturday, while Italy and Germany hit their highest marks since April.

To this point, arrivals from abroad have not been a major driver of COVID-19 spread in Canada. Public Safety Minister Bill Blair said Friday that between two and three per cent of cases have been tied to international travel.

WINTER IS COMING

Evidence is mounting that it is easier for COVID-19 to spread indoors – especially in places where people are eating or loudly talking without wearing masks and without distancing properly.

That could be a problem as fall-like weather sets in across Canada, with colder temperatures making the idea of spending substantial time outside less appealing.

Warnings of a “long winter” have led to a surge in demand for patio heaters and other outdoor equipment, but many Canadians may find it difficult to brave the elements more than they normally would.

Pair that with indications that “pandemic fatigue” is setting in, and some experts are concerned that some Canadians may adopt risky behaviours this winter – potentially easing the path of COVID-19.

“I am concerned that there’s going to be more mingling than there should be,” Furness said. He would like to see hard-hit regions shut all bars, restaurants and gyms until the virus is better brought under control.

Dr. Brian Conway, president and medical director of the Vancouver Infectious Diseases Centre, said Saturday on CTV News Channel, that Canadians need to brace themselves for extended isolation, even if a full lockdown never happens.

“Many people are not accepting that the old normal is gone for a long time, that we have to embrace a new normal,” he said.

“We need to get messaging out there so that people feel good about making the right decision, and the numbers go down.”

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca

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A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.

In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.

Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.

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The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.

However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

3 days ago

Duration 6:14

Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.

“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”

The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.

Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.

Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”

Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure. 

Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.

The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.

A challenge for investors, founders and workers

The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.

He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.

The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”

A man with short brown hair wearing a light blue suit jacket looks directly at the camera, with a white background behind him.
Benjamin Bergen, president of the Council of Canadian Innovators, said the proposed change could have a chilling effect for several reasons, with companies already struggling to access and raise financing in a high interest rate environment. (Submitted by Benjamin Bergen)

He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.

But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.

“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”

As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”

‘One foot on the gas, one foot on the brake’

Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.

“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

2 days ago

Duration 12:18

Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.

“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”

Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.

LISTEN | What does a hike on the capital gains tax mean?: 

Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?

Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.

Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.

He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.

“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”

Tech titan says change will only impact richest of the rich

A man sits on an orange couch in an office.
Ali Asaria, the CEO of Transformation Lab and former CEO of Tulip Retail, told CBC News that the proposed change to the capital gains tax is ‘going to really affect the richest of the rich people.’ (Tulip Retail)

Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.

“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.

“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”

While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.

“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.

“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

300x250x1

The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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