Close X
Monday, December 2, 2024
ADVT 
National

Make Robots Pay Taxes? Documents Detail Ideas To Adapt To Changing Labour Force

The Canadian Press, 03 Sep, 2018 11:12 PM
    OTTAWA — The Liberals have been told to consider taxing robots that displace workers, letting people pay their tax bill in kind rather than with cash, and work to prevent income inequality before it happens.
     
     
    The ideas are part of a massive government effort to adapt to a rapidly changing workforce and stave off some of the strain it could cause on federal finances.
     
     
    Documents obtained by The Canadian Press under the access to information law provide a window into the ideas the Liberals have been asked to consider as they modernize the social safety net and labour regulations.
     
     
    All the ideas are aimed at preparing federal programs designed six decades ago for the workforce demands in the next six decades.
     
     
    What the Liberals and other governments around the world are trying to respond to is increasing automation, the unbundling of work that can be done online by anyone, anywhere in the world, and more short-term jobs that are the hallmark of the "gig" economy.
     
     
    Sarah Doyle, director of policy and research at the Brookfield Institute for Innovation + Entrepreneurship, said the changes will be disruptive and affect some workers more than others, requiring a response to avoid an increase in inequality.
     
     
    "We're seeing changes happen that very well could become faster and magnified," she said.
     
     
    "The distribution of the risks and benefits associated with automation, with digitization, with these different large scale trends will not be evenly distributed across the population."
     
     
    One estimate provided to G7 labour ministers this spring said up to 15 per cent of jobs could be lost to automation over the next two decades. The jobs most at risk are farm and construction workers, accountants, lab technicians and salespeople, according to information provided to a closed-door meeting of top federal officials in December 2017.
     
     
    The professions at lower risk of automation were paramedics, doctors, nurses, teachers, engineers, and journalists.
     
     
    The rise of cross-border telework has also meant tasks previously done by domestic workers are unbundled and posted for international workers whose labour costs less, which federal officials worry could depress wages in Canada.
     
     
    Canadian demand for this online work is larger than its share of the international labour force, signalling an area that policy-makers need to probe, said Armine Yalnizyan, an economist who researches the future of work.
     
     
    Workers in this new "gig" economy — marked by more part-time and short-term contract work — are also less likely to pay into the employment insurance system funded by premiums from employers and employees. A June 2017 briefing to Canada's labour minister said online platforms were "providing new ways to avoid employer-sponsored benefits and other financial burdens."
     
     
    Federal officials who were part of the discussion expressed concerns that the trend could deal a fatal fiscal blow to the federal social safety net.
     
     
    Avoiding this fate encompasses a range of solutions, according to the documents.
     
     
    The October 2017 brainstorming sessions included recommendations to pay each Canadian a guaranteed minimum income, which would replace various targeted social benefits. Another idea was to allow Canadians to pay their tax bills through non-cash payments like volunteering to do work for the federal government.
     
     
    Rejigging labour rules to give workers more bargaining power could be part of a push towards "pre-distribution" to boost market incomes instead of relying on government benefits to redistribute income and even out inequality.
     
     
    "Increasingly over the last 50 years, we have seen the bargaining position of workers erode and unless there are measures that can actually improve the way in which workers can bargain for themselves, then we are totally reliant on government to fix everything. And that cannot be," Yalnizyan said.
     
     
    Lifelong learning has also been a key issue to allow workers to repeatedly drop out of the workforce to upgrade their skills and adapt to changing employment needs, particularly those workers who don't have digital skills and could find themselves replaced by a robot. There was also a proposal to use technological advances, like 3-D printing, to reduce the costs of goods.
     
     
    And as for those robots? Officials suggested taxing technology that displaces a warm-bodied worker, or require that a portion of the automated work be directed toward a social good.
     
     
    The October 2017 brainstorming session report said the range of policy options hadn't been fully assessed for "usefulness, impact and feasibility." Instead, the ideas represented "the beginning of a discussion about how to respond to the changing nature of work."
     
     
    Labour Minister Patty Hajdu said she believed the government was getting close to finding some of the solutions.
     
     
    "It's not that we haven't had change in the world of work before. It's the rapid pace of change I think that is concerning to many Canadians," she said in an interview.
     
     
    "But I also don't necessarily have the same doom and gloom...as maybe some of our opposition parties have because I actually think that there are opportunities in the innovation and in the change."

    MORE National ARTICLES

    'Life-Altering' Injuries For Burnaby Senior Attacked While Walking In Central Park

    'Life-Altering' Injuries For Burnaby Senior Attacked While Walking In Central Park
    Police say the unnamed 73-year-old man was walking in Central Park just after 9 p.m. on Sunday evening when he was assaulted.

    'Life-Altering' Injuries For Burnaby Senior Attacked While Walking In Central Park

    Guest Column: ‘White Man’s Country' Vs. Multicultural Nation

    Guest Column: ‘White Man’s Country' Vs. Multicultural Nation
    The Prime Minister is being tested here, and his next move may finally provide Canadians with a true indication of just how fit to lead Justin Trudeau really is.

    Guest Column: ‘White Man’s Country' Vs. Multicultural Nation

    Guest Column: International Students From India Wilfully Violating Canadian Immigration Laws

    Guest Column: International Students From India Wilfully Violating Canadian Immigration Laws
    The rise in fake marriages has many Punjabi community organizations concerned about this issue enough to pressure the federal government to make changes in immigration laws to prevent such fraud.

    Guest Column: International Students From India Wilfully Violating Canadian Immigration Laws

    CREA Reports June Home Sales Down 10.7% From Year Ago, But Up From May

    CREA Reports June Home Sales Down 10.7% From Year Ago, But Up From May
    The Canadian Real Estate Association (CREA) said Monday sales in June were up 4.1 per cent compared with May, marking what the board described as the first "substantiative" month-over-month increase this year.

    CREA Reports June Home Sales Down 10.7% From Year Ago, But Up From May

    After Her Body Caught Fire, Ottawa Woman Calls For More Safety Regulations

    After Her Body Caught Fire, Ottawa Woman Calls For More Safety Regulations
    OTTAWA — An Ottawa woman who caught fire in a friend's backyard says there should be more safety regulations in place for backyard fire products.

    After Her Body Caught Fire, Ottawa Woman Calls For More Safety Regulations

    21-Year-Old Cycling Across Canada For Alzheimer’S Research In Grandfather’s Memory

    21-Year-Old Cycling Across Canada For Alzheimer’S Research In Grandfather’s Memory
     A young man is nearing the end of his 8,000-kilometre bike ride across Canada, an endeavour he began to honour his grandfather and raise money for Alzheimer's research.

    21-Year-Old Cycling Across Canada For Alzheimer’S Research In Grandfather’s Memory