Monthly Archives: June 2021

Random thoughts – keeping you on your toes

Canadian Old Age Security (OAS) Clawback Clarification

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The Canadian  Old Age Security (OAS) pension is a monthly payment you can get if you are Canadian or a legal resident for at least 20 years beginning at age  65 and older.

If you have a net income greater than $79,045 (in 2020 this changes every year) some or if your net income is more than $129,600, all your payments are clawed back.

Simple Rules, Complex Implementation

What makes this a worthy blog topic for me is the how the government manages the clawback provisions.  I was unable to find a clear and simple full explanation of the process and in fact even the Governments site on the topic is unclear.

The problem stems from the fact many recipients will be subject to a  monthly recovery tax (really akin to a withholding tax) even though they will have no clawback.

The confusion stems from the timing of how the recovery tax is calculated versus the timing of the actual clawback determination (i.e., whether any amounts need to be paid back.)

Clawback Determination

Annually as part of the Canadian income tax submission those receiving OAS calculate, based on their actual net income for the reported year, whether any OAS payments they received are subject to be retuned to the government.

The tax return includes a formula for this calculation and includes amounts due (or refund if applicable – see the recovery tax section for details)

Recovery Tax Implementation

The communication of how the recovery tax can be avoided is where my complaint lies.  Granted the communication of how it is calculated is relatively straightforward.

Simply put, the net income reported on your return one or two years before the year you begin receiving the benefit is used to determine if you are eligible for recovery tax.  For many this means the government will implement the tax.

And here is the Rub

Often your net income in the years before you retire is higher than in retirement (i.e., the year you start OAS) so this calculation leads to  a recovery tax being charged, which you will get as a refund when you complete your tax return .

For me the paying of this  unnecessary withholding  tax, which happens virtually automatically,  without explaining clearly that it can be avoided by submitting a request form to the CRA is dirty pool.  But what do I expect from the government.  Yuck.

Random thoughts – keeping you on your toes

The origin of life

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Where did humans come from?  Created by god is one persistent answer to this question believed to be postulated in different forms by multiple races and cultures since the beginning of humanity.

More recent records propose a let omnipotent solution, that of black holes and natural evolution.  That is not a grand design but rather a happenstance occurrence.

Missing Motive

Whether you accept the creationist or evolutionist answer to explain the mystery of life, or even both in some combination, these solutions lack a definitive conclusion of the most important element of any mystery.  That is motive.

The reason for the existence of the universe remains hidden to me, although we can, and do, rationalize how the universe began the story is supported only by speculation as to motive.

Love is the Answer

One of my favourite underlying explanations as to the motive for building a universe is from the oft expressed creationist view that god was motivated by his love.

Being all alone is tough so god created the universe to allow for development of a range of strong and positive emotional and mental states, from the most sublime virtue or good habit, the deepest interpersonal affection, to the simplest pleasure.

Love without Hate

Love cannot exist without hate and if love was the motivation for creation unfortunately time has shown it cannot, and does not, exist without hate.

I question whether an omnipotent being  would not have know this and so purposely was driven to create something complex to stave off the boredom and loneliness of just being without anything constructive and defined ((i.e., an universe).

The search for Answers continues

Or perhaps the answer lies in the accident of evolution.  The mental pursuit of motivation continues until the story ends and perhaps even then we will not have a satisfying answer.

Random thoughts – keeping you on your toes

Intransigent

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Sometime when we are having a debate or trying to persuade someone to adopt our perspective we may find them unwilling or refusing to change their  views or to agree about something.

Or this intransigent behaviour could apply to ourselves, that is we might not be willing to compromise and  obstinately maintain our superior attitude.

Everyone is Important

For me, the best way to avoid being intransigent is to remind myself that embracing diversity of background and opinions is extremely powerful and effective.   Being obstinate can shut down rapport  very quickly, it is really the opposite of embracing others ideas.

This does not mean the thoughts and ideas of others take precedence over yours, although they might, but rather makes sure you treat others perspectives as important without summarily shutting them down.

For Example

I recently had an interesting discussion about my recent blog on the value and need to get vaccinated for covid to create a situation which eradicates spread of the disease.

At first my position was absolute brooking no argument until my obstinate behaviour became obvious to me.  I realized it was not necessary for me to agree or support the view of others (yes there are people who question the value of the virus) .

Assessing the information to date, both for vacinnes and against, Albeit how well articulated the detractors may be I find myself firmly pro-vaccine but much as I would like to simply dismiss the detractors this is no where near as powerful as continuing to work to persuade them of the correctness of my position.

 

 

Random thoughts – keeping you on your toes

Vaccine Hesitancy

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I am very puzzled by those who are not taking advantage of the covid 19 vaccines which are not readily availavble in most places around the globe, certainly this is the case in U.S. and Canada.

Vaccines have been proven to work.  Some examples of diseases virtually eradicated by vaccines are; polio, tetanus, hepatitis B,  Rubella, Measles, Whooping Cough.  The full list is much more extensive.

Herd Immunity

Interestingly, protecting ourselves from deadly communicable diseases requires co-operation.  We must all gain immunity (or at least 90%) to eradicate the disease or at least reduce its impact to manageable levels.

We lve in a scientifically enlightened era for which historical proof of the effectiveness of vaccines is absolute.  Simply put, diseases with vaccines were once endemic but are no longer so.

The examples of deadly disease eliminations are objectively measurable, known past pandemics which have been eliminated are well documented.

Group Think

Vaccination is a case where group think is required.  In this case creativity or individual responsibility is not needed.  Acceptance of reality and active participation is the order of the day.

Sadly some believe vaccination against covid is a sales pitch or even worse a conspiracy.   For me thinking this way is both somewhat delusional but sadly it is impactful on others.

Choosing not to get vaccination allows for a transmission vector to continue to exist.  Thus enough people will ontinue to get sick to impact everyone.

It Works

Does vaccination work against covid?  In England, for which the population is 73% vaccinated,  the number of new daily cases dropped from around 63,000 in January to less than 500.

Given this did not occur until vaccination was underway in earnest the conclusion seems pretty straightforward to me.  So don’t delay, get vaccinated now.