One thing struck me when reading an account of how some Syrian refugees are doing, now that the first year of special supports has come to an end:
A few among the 28 government-assisted families who have settled in Leaside Towers have found work in the neighbourhood – some frying up halal chicken at the Popeyes, or stocking shelves at Iqbal Halal Market. But some see a disincentive to taking a minimum-wage job: In Ontario, if you are on Ontario Works and get a job, half your earnings over $200 are deducted from your welfare cheque. As they see it, they’d be bringing home so little money that they’re better off using that time to focus on improving English, or running their households, which can consume much of their day.
half your earnings over $200 are deducted? Well of course they’re better off using that time to focus on improving their English or running their households. That’s a complete no-brainer and returns us to a question I have often discussed on PrefBlog, the effective tax rate for low earners.
I advocate a guaranteed minimum income – administered through the tax system, as a refundable tax credit – with more rational marginal tax rates … if you make $20,000 per year, you should pay a tax rate of – say – 10% on your next $1,000, regardless of where the $20,000 comes from. Only in this way can we really say we are making an effort to help people get out of the poverty trap. When we tax that $1,000 at 50%+, we’re clearly just chanting slogans and affirming our moral superiority.
Where’s the incentive to volunteer for an extra shift? Where’s the incentive to take a risk and move in order to get a slightly better job? Nowhere, that’s where. It’s craziness.
So it was with interest that I read today of an Ontario pilot project with respect to basic income:
About 4,000 recipients will be randomly chosen from the three regions. One group will start receiving the so-called basic income as soon as this summer, and the remainder will be part of the control group, which will not receive any payments, according to a provincial spokesman. A single person could receive up to $16,989 per year. A couple could get up to $24,027 annually.
…
However, if an individual is receiving income from a job, the government will deduct half of his or her earned income.
Utterly moronic. I have no words to express my disgust at the cruelty of those who would even consider slapping the poor with a 50%+ tax rate – or perhaps it is their cynical machinations to ensure the failure of the pilot programme that disgusts me. I’m not sure how explicit taxes will work, but I suspect that in practice the “+” in “50%+” will be a significant number – particularly when more subtle taxes, like disqualification from ‘geared to income’ pricing, are considered.
HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7464 % | 2,123.9 |
FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7464 % | 3,897.2 |
Floater | 3.59 % | 3.69 % | 45,093 | 18.09 | 4 | 0.7464 % | 2,246.0 |
OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0196 % | 3,022.1 |
SplitShare | 4.94 % | 4.15 % | 54,183 | 0.61 | 6 | 0.0196 % | 3,609.0 |
Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0196 % | 2,815.9 |
Perpetual-Premium | 5.31 % | -3.70 % | 75,078 | 0.09 | 23 | 0.1381 % | 2,779.5 |
Perpetual-Discount | 5.12 % | 5.10 % | 111,452 | 15.30 | 13 | 0.3796 % | 2,973.3 |
FixedReset | 4.39 % | 3.94 % | 232,099 | 6.62 | 94 | 0.6673 % | 2,357.5 |
Deemed-Retractible | 5.00 % | 4.70 % | 146,624 | 0.09 | 31 | 0.5442 % | 2,890.1 |
FloatingReset | 2.52 % | 3.09 % | 57,307 | 4.50 | 9 | 0.5683 % | 2,536.8 |
Performance Highlights | |||
Issue | Index | Change | Notes |
W.PR.M | FixedReset | 1.00 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-15 Maturity Price : 25.00 Evaluated at bid price : 26.26 Bid-YTW : 4.02 % |
GWO.PR.H | Deemed-Retractible | 1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.12 Bid-YTW : 5.49 % |
IFC.PR.C | FixedReset | 1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.78 Bid-YTW : 5.59 % |
NA.PR.X | FixedReset | 1.15 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-15 Maturity Price : 25.00 Evaluated at bid price : 27.16 Bid-YTW : 3.24 % |
MFC.PR.N | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.75 Bid-YTW : 5.69 % |
MFC.PR.B | Deemed-Retractible | 1.20 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.53 Bid-YTW : 5.70 % |
SLF.PR.C | Deemed-Retractible | 1.22 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.48 Bid-YTW : 6.18 % |
MFC.PR.H | FixedReset | 1.23 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.77 Bid-YTW : 4.38 % |
PWF.PR.P | FixedReset | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 16.30 Evaluated at bid price : 16.30 Bid-YTW : 3.94 % |
MFC.PR.K | FixedReset | 1.25 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.12 Bid-YTW : 5.95 % |
MFC.PR.C | Deemed-Retractible | 1.25 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.68 Bid-YTW : 6.12 % |
GWO.PR.R | Deemed-Retractible | 1.26 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.06 Bid-YTW : 5.48 % |
BAM.PR.K | Floater | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 12.77 Evaluated at bid price : 12.77 Bid-YTW : 3.73 % |
POW.PR.D | Perpetual-Discount | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 24.49 Evaluated at bid price : 24.72 Bid-YTW : 5.08 % |
NA.PR.A | FixedReset | 1.35 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-15 Maturity Price : 25.00 Evaluated at bid price : 27.00 Bid-YTW : 3.34 % |
SLF.PR.E | Deemed-Retractible | 1.39 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.63 Bid-YTW : 6.13 % |
NA.PR.S | FixedReset | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 22.10 Evaluated at bid price : 22.34 Bid-YTW : 3.89 % |
MFC.PR.F | FixedReset | 1.43 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.60 Bid-YTW : 9.23 % |
BAM.PR.C | Floater | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 12.85 Evaluated at bid price : 12.85 Bid-YTW : 3.70 % |
SLF.PR.I | FixedReset | 1.73 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.50 Bid-YTW : 4.78 % |
SLF.PR.A | Deemed-Retractible | 1.79 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.92 Bid-YTW : 5.52 % |
HSE.PR.A | FixedReset | 1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 4.22 % |
SLF.PR.D | Deemed-Retractible | 1.85 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.58 Bid-YTW : 6.11 % |
MFC.PR.I | FixedReset | 1.88 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.27 Bid-YTW : 5.08 % |
MFC.PR.G | FixedReset | 2.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.46 Bid-YTW : 4.95 % |
MFC.PR.J | FixedReset | 2.18 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.95 Bid-YTW : 5.04 % |
PWF.PR.S | Perpetual-Discount | 2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 23.37 Evaluated at bid price : 23.84 Bid-YTW : 5.03 % |
VNR.PR.A | FixedReset | 2.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 21.44 Evaluated at bid price : 21.75 Bid-YTW : 4.42 % |
IAG.PR.G | FixedReset | 2.68 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 5.20 % |
TRP.PR.F | FloatingReset | 3.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 3.31 % |
Volume Highlights | |||
Issue | Index | Shares Traded |
Notes |
NA.PR.Q | FixedReset | 291,702 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.80 Bid-YTW : 3.64 % |
TD.PF.G | FixedReset | 120,406 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 27.18 Bid-YTW : 3.16 % |
BAM.PR.R | FixedReset | 89,870 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 19.45 Evaluated at bid price : 19.45 Bid-YTW : 4.22 % |
PWF.PR.P | FixedReset | 72,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-24 Maturity Price : 16.30 Evaluated at bid price : 16.30 Bid-YTW : 3.94 % |
BNS.PR.D | FloatingReset | 72,500 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.83 Bid-YTW : 4.54 % |
BNS.PR.H | FixedReset | 64,039 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-01-26 Maturity Price : 25.00 Evaluated at bid price : 26.44 Bid-YTW : 3.54 % |
There were 34 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights | ||
Issue | Index | Quote Data and Yield Notes |
CU.PR.H | Perpetual-Premium | Quote: 25.51 – 25.95 Spot Rate : 0.4400 Average : 0.3056 YTW SCENARIO |
PWF.PR.A | Floater | Quote: 14.13 – 14.75 Spot Rate : 0.6200 Average : 0.5207 YTW SCENARIO |
PWF.PR.T | FixedReset | Quote: 23.01 – 23.36 Spot Rate : 0.3500 Average : 0.2609 YTW SCENARIO |
W.PR.J | Perpetual-Premium | Quote: 25.35 – 25.64 Spot Rate : 0.2900 Average : 0.2128 YTW SCENARIO |
RY.PR.Q | FixedReset | Quote: 27.20 – 27.40 Spot Rate : 0.2000 Average : 0.1248 YTW SCENARIO |
TRP.PR.B | FixedReset | Quote: 14.47 – 14.70 Spot Rate : 0.2300 Average : 0.1646 YTW SCENARIO |
Someone needs to call out the stupidity of the Liberals love affair with means testing at every level of Government.