TABLE OF CONTENTS. 3. Contributions and rate system Automobile : insurance, registration fees and permits Tuition fees... 6

Transcription

1 TOWN OF TÉMISCAMING Comparative study concerning the tax burden of Quebeckers and Ontarians and certain goods and services provided by the governments, their crown corporations and public agencies. Translation by Danielle Gravelle for the Town of Témiscaming from a document prepared by Daniel Grenier, Champagne, Bellehumeur, Guimond Inc. November 20th, 2013

2 TABLE OF CONTENTS Introduction Personal income taxes Real estate and property taxes Contributions and rate system Automobile : insurance, registration fees and permits... 5 Tuition fees... 6 Taxes on consumer goods (GST, PST, HST)... 6 Subsidized child care... 7 Drug insurance plan... 8 Cost of electricity... 9 Sports, leisure and entertainment....9 Conclusion Summary..12 Appendix 1 : Presentation of a typical household.14

3 Introduction Federal, provincial and local governments, and other public entities use various forms of taxation to charge taxes to individuals. The purpose of this analysis is to examine the various tax expenses and rate systems applicable in Québec and Ontario in order to compare the cost of living between the Town Témiscaming and the City of North Bay. The study is primarily aimed at people who work in Témiscaming, but choose to live in Ontario for tax reasons. Although the decision to establish one s home in one province or another remains a very personal choice, this decision is often based on the misconception that Quebeckers pay the highest taxes in North America. With this report, we hope to demonstrate this is untrue. To do so, we will compare taxation of various types of households in both provinces and then take a look at the different rate settings applied in both provinces. In doing so, the study will highlight the competitive position of Québec s taxation system as a whole. However, it is important to understand that this report is by no means considered to be an exhaustive study of all the points of comparison between the cost of living in Quebec and Ontario. Many other factors and economic indexes would be necessary for such an undertaking. In recognizing the limits of this study, such as the absence of consideration for the entire public service basket (medical insurance, Québec pension plan, Québec parental insurance plan, social security, etc ) and the degree of the social safety net, we believe the comparison of indexes under consideration in this report, presents a fair analysis of the various discrepancies between both provinces. In addition, an aggregate analysis allows the reader to better understand the differences between Québec and Ontario. 1

4 1. Personal income taxes In many cases, people who state that the taxation rate is very high in Québec, simply add up the tax rates imposed by the governments of Québec and Ottawa, which adds up to tax rates that vary between 30% and 53% for Quebeckers. In reality, these numbers have nothing to with how much taxpayers pay in income tax. For example, in Québec, it is virtually impossible for individuals to have the total of their gains taxed at 50%. In fact, there is a big difference between the theoretical rate suggested above, called the marginal rate, and the net tax burden of individuals and households, referred to as the effective rate. Many fiscal elements must be considered to correctly distinguish these two rates. Our taxation system functions by levels and assesses the first dollars earned at a much lower tax level that the one applied to the last dollars. One must also consider the various tax credits and deductions before calculating the net tax burden. For example, Schedule 2 shows a negative net tax burden (income taxes less the various credits and money received in benefits) for a family composed of 2 children, which means the family receives more money from the government in comparison to how much it pays out. Schedule 1 shows the gaps between a Québec taxpayer and an Ontario taxpayer after the calculation of the applied credits and deductions. The tax burden for a single person, is higher for a Quebecker whose income is greater than $30,000. However, if you calculate the effective tax rate (average) after credits and deductions are applied, you will see that the tax rate is well below 50%. Further on in this report, we will see that the difference in the tax burden for a single person can be compensated through various rates and charges in effect in Québec. Employment income PERSONAL INCOME TAX PAYABLE FOR 2013 SCHEDULE 1: SINGLE, 18 YEARS OLD AND OVER, OCCUPANT OF A DWELLING OR OWNER OCCUPANT, PROPERTY TAX OF $2,000 (Ontario) Taxes Québec (1) Solidarity Credit Qc + GST Total net taxes less credits Qc Taxes Ontario (1) Trillium credit Ontario + GST Total net taxes less credits Ontario Net variance Québec $20,000 $1,655 $ (1,335) $320 $1,464 ($1,150) $314 $6 $25,000 $3,091 $ (1,335) $1,756 $2,698 ($935) $1,763 $(7) $30,000 $4,473 $ (1,335) $3,138 $3,632 ($700) $2,932 $206 $35,000 $5,854 $ (1,335) $4,626 $4,556 ($578) $3,978 $648 $40,000 $7,235 $ (1,228) $6,557 $5,662 ($228) $5,434 $1,123 $50,000 $10,791 $ (678) $10,791 $8,550 $ - $8,550 $2,241 $60,000 $14,614 $ - $14,614 $11,654 $ - $11,654 $2,960 $80,000 $22,283 $ - $22,283 $18,199 $ - $18,199 $4,084 $100,000 $31,055 $ - $31,055 $26,440 $ - $26,440 $4,615 $130,000 $45,275 $ - $45,275 $39,463 $ - $39,463 $5,812 $150,000 $55,898 $ - $55,898 $48,593 $ - $48,593 $7,305 $200,000 $80,924 $ - $80,924 $71,798 $ - $71,798 $9,126 (1) Federal and provincial income taxes including mandatory health contributions in Ontario or Québec (as the case may be) 2

5 As far as the net tax burden is concerned, Québec probably deviates the most in the area of families. In all the cases that were examined, Québec incurred the lowest burden amongst the majority of industrialized countries and Canadian provinces. The supportive family policies are more generous in Québec than most other provinces. Schedule 2 shows that in Québec, the annual family income must be more than $121,000 before the tax burden increases in comparison to Ontario. Based on the average family income in Québec for 2013, this finding applies to a large majority of families. Here is another interesting comparison : the average family income must reach $61,000 in Ontario and more than $72,000 in Québec, before the income tax burden, less the various credits and benefits, becomes positive. PERSONAL INCOME TAX PAYABLE FOR 2013 SCHEDULE 2: COUPLE WITH 2 CHILDREN (AGES 4 & 6 ON DECEMBER 31 ST ) ANNUAL INCOME DISTRIBUTED BETWEEN SPOUSES WITH CHILD CARE COSTS OF $4,000/CHILD/YEAR (PERMISSIBLE MAXIMUM) HOME PROPERTY OWNERS, PROPERTY TAXES OF $2,000 (Ontario) Employment income + UCCB $1,200 (family) Taxes Québec (1) Solidarity Credit Québec + GST (2) (1) FEDERAL AND PROVINCIAL AXES INCLUDING MANDATORY HEALTH CONTRIBUTION FOR ONTARIO OR QUÉBEC (AS THE CASE MAY BE), TAX BENEFIT FOR EMPLOYMENT INCOME AND THE QUÉBEC WORKING BONUS AND THE CREDIT (QC) OR DEDUCTION (ONT) FOR CHILD CARE COSTS Canada Child Tax Benefit Qc (3) Total net taxes less credits Québec Taxes Ontario (1) Trillium credit Ontario + GST (2) PROVINCIAL CREDITS RELATING TO CONSUMPTION TAXES AND HOUSING + GST (3) INCLUDING THE FEDERAL UNIVERSAL CHILD CARE BENEFIT (UNDER 6 YEARS OF AGE) Ontario and Canada Child Tax Benefit (3) Total net taxes less credits Ontario Net tax variance Québec $21,200 ($9,695) $ (2,219) $ (11,729) $ (23,643) $ (1,762) ($2,602) ($10,671) ($15,035) ($8,608) $26,200 ($9,117) $ (2,219) $ (11,729) $ (23,065) $ (1,493) ($2,602) ($10,671) ($14,766) ($8,299) $31,200 ($7,579) $ (2,219) $ (11,279) $ (21,077) $ (743) ($2,602) ($10,511) ($13,856) ($7,221) $36,200 ($6,357) $ (2,194) $ (11,351) $ (19,902) $ - ($2,588) ($9,733) ($12,321) ($7,581) $41,200 ($4,257) $ (1,900) $ (10,201) $ (16,358) $580 ($2,588) ($8,183) ($9,891) ($6,467) $51,200 $4 $ (928) $ (7,839) $ (8,763) $2,156 ($1,316) ($5,033) ($4,193) ($4,570) $61,200 $2,626 $ - $ (6,744) $ (4,118) $4,053 ($278) ($3,728) $47 ($4,165) $71,200 $5,688 $ - $ (5,944) $ (256) $6,265 ($76) ($3,328) $2,861 ($3,117) $72,200 $5,964 $ - $ (5,864) $100 $6,505 ($66) ($3,288) $3,151 ($3,051) $76,200 $7,070 $ - $ (5,544) $1,526 $7,347 ($31) ($3,148) $4,168 ($2,642) $81,200 $8,452 $ - $ (5,144) $3,308 $8,628 $ - ($2,928) $8,628 ($5,320) $101,200 $15,544 $ - $ (3,544) $12,000 $14,271 $ - ($2,128) $14,271 ($2,271) $121,200 $23,099 $ - $ (2,580) $20,519 $20,520 $ - ($1,328) $20,520 ($1) $131,200 $26,929 $ - $ (2,452) $24,477 $23,634 $ - ($1,200) $22,434 $2,043 3

6 2. Real estate and property taxes Choosing a place to live is based primarily on where a person works. Generally speaking, it is better to live as close as possible to your workplace as much in terms of costs and time related to travelling, as to quality of life, especially since for most of us, work occupies 20% of our time. This choice becomes easier when the real estate market favours the town a person works in. Deciding where to establish a home is a dilemma for most people who work in border provinces this is often the case for people who live in Gatineau and Ottawa. Contrary to popular belief, it is false to assume that people who work in Ottawa, automatically choose to establish themselves in that city. On the contrary, most couples with children, establish their home on the Québec side, firstly because of the real estate market which favours the Gatineau region and also because the Québec taxation system clearly provides more benefits to families. According to data collected by the CMHC in 2013, there are more advantages to living in Québec for a family who wants to rent or buy a property. In Ontario, the average cost of a home in 2013 was $398,000 while in Québec, the cost was $268,000. Let s compare the cost of having your home in Témiscaming or in North Bay: Rental : According to a CMHC study, the average cost to rent a 2 bedroom apartment (4 ½) in Témiscaming is $535 (average for the 3 largest cities in Abitibi-Témiscamingue) and $846 in North-Bay. Savings : $311/ month, $3,732 / year in favour of Témiscaming. Property owner: Based on the average of property assessments and prices of real estate transactions (2013 CMHC figures), a home purchased for $ in Témiscaming, will cost $259,000 in North Bay. In addition to saving a lot of money when buying a house, accessibility to property ownership is made easier because of much lower financing costs and property taxes. For example, let s say you re thinking about buying a house based on the values mentioned above, and you have a $25,000 down payment and financing over a 25-year amortization period with a 4% mortgage interest rate. The following shows the variables of your mortgage : Témiscaming North Bay Purchase price $175, 000 $259,000 Down payment $25,000 $25,000 Total amount of mortgage $150,000 $234,000 Monthly mortgage payment $792 $1,367 Sum of payments over 25 years $237,525 $410,129 4

7 In the previous example, you would save $6,900 $ annually in mortgage payments ($172,604 during the 25-year term). Below are the results if we add the property taxes to this comparative study for a home assessed at $175,000 in Témiscaming and $ in North-Bay. Témiscaming North Bay Municipal property taxes 2013 $2,506 $3,543 School taxes 2013 $612 $549 Snow removal $27 - Water & Sewer (2 bathrooms- Ont.) $296 $841 Garbage $212 - $3,653 $4,933 In the example outlined above, if you choose to buy a house in Témiscaming, you will save $8,180 every year on your mortgage loan payment and property taxes. The presentation of these facts becomes even more convincing when a person who works in Témiscaming, but lives in North Bay, takes into account travelling expenses, which is estimated at $6,000 a year. You can draw your own conclusions. 3. Contributions and rate system Automobile : insurance, registration fees and permits Québec enjoys the lowest automobile insurance costs in Canada, being automatically ranked first among the four provinces that offer public automobile insurance plans. In 2012, the average annual premium was the lowest among all provinces. The schedule on the next page provides insurance data on premiums for material damages (private insurers) and premiums for bodily harm (SAAQ). This schedule shows a net advantage in favour of Québec in regards to rates paid. For a couple with two vehicles, there is an annual savings of more than $6,000. The savings are often much greater when comparing other factors such as the driver s age, the type of vehicle and the region. In addition, compensations paid by the SAAQ for bodily harm are appropriately comparable to most private insurance companies, which provides better protection for victims, and a shorter wait time for compensation with no regards to fault. 5

8 RATES FOR A PASSENGER VEHICLE UNDER 4 LITRE ENGINE (NORTHERN ONTARIO REGION AND QUÉBEC) DESCRIPTION QUÉBEC ONTARIO DIFFERENCE DRIVER S PERMIT (excluding insurance SAAQ) $21,25 $80,00 ($58,75) REGISTRATION (excluding insurance SAAQ) 2013 $115,25 $45,00 $70,25 AVERAGE PREMIUM AUTOMOBILE INSURANCE INCLUDING THE PERSONAL INJURY PREMIUM SAAQ $712,00 $1,527 ($815,00) TOTAL COST-PERMIT REGISTRATION AUTO INSURANCE $848,50 $1, ($803,50) ACCORDING TO DATA COLLECTED FROM THE INSURANCE BUREAU OF CANADA, THE SOCIÉTÉ D ASSURANCE AUTOMOBILE DU QUÉBEC (SAAQ) AND SERVICE ONTARIO Tuition fees Québec remains the province with the lowest tuition fees in Canada, followed closely by Newfoundland and Labrador, contrary to Ontario where tuition fees are the highest in the country. The average tuition fee for university students registered in full time junior university training for is $2,653 in Québec and $7,259 in Ontario, and $5,772 for all other Canadians. For Québec, the calculation of the provincial average takes into account students within the province and out-of-province. This average tuition fee applies to all fields of studies for the period. In some fields of study, the difference is even greater: Dentistry: ($3,176 for Québec and $30,352 for Ontario), Medicine ($2,808 for Québec and $21,648 for Ontario) to name only a few examples. It is clearly more beneficial for a Québec resident to register in Québec universities. Taxes on consumer goods The application of consumption taxes is comparable in both provinces. In Ontario, the HST has been in effect since July It combines both the PST (8%) and the GST (5%), which gives a combined sales tax rate of 13%. In Québec, the GST (5%) and the PST (9,975%) are in effect which gives a combined sales tax rate of 14,975%. Hence, the consumption tax rate is 1,975% higher Québec. It should however be noted that many commodities are zero-rated or exempt from taxes such as basic food items. Thence, additional charges may vary depending on a family s consumption habits and may, in some cases, be negligible. Subsidized Child Care Québec is the Canadian province that invests the most in its child care program. With its universal national child-care program at 7$/day, Québec offers families quality and structured services (irrespective of the family income) and quite beneficial when compared to programs from other Canadian provinces. In 2008, 21,9% of children under 12 years of age living in Canada were from Québec but yet, the province held 42,5% of child care places administered in Canada and spent no 6

9 less than 56,1% of total expenses from all provincial and territorial governments in the country. Québec s effort in the area of child care is exceptional in Canada, and it continues to develop its network by opening new places. In comparison, Ontario had 40,5% of children under the age of 12 living in Canada in 2008, but only administered 29,6% of child care places. Realistically, the Town of Témiscaming currently offers 68 subsidized child care places ($7/day) in a Centre de la Petite Enfance and 56 places in family day care services. In addition to these subsidized places, there are non-subsidized daycares where the parental contribution is almost the same as the 7$/day once the federal and provincial tax daycare credits are applied. In Ontario, costs for child care vary from one daycare to the next as the subsidy program is administered locally - local governments are responsible for 20% of costs while the provincial government takes on 80%. These child care services must be administered by the province to be eligible to subsidies which are paid directly to the daycare service. The subsidies vary according to family income: Annual family income Range from $0 to $20,000 Range from $20,000 to $40,000 Range from $40,000 and up % required based on income (Contribution of parents) 0% 10% 30% Example : Take a family with a $50,000 income, the required parental contribution will amount to 10% ($2,000) for the $20,000 to $40,000 range, and the balance of $10,000 will be taxed at 30% in the $40,000 and up range ($3,000), which would bring the annual parental contribution to $5,000. For comparison purposes, let s look at the parental contribution on a daily basis. A child who is registered in a daycare full time, will be in attendance on average, 260 days per year. For a subsidized place in Témiscaming, the required parental contribution will be $7/day (irrespective of the family income). In North Bay, the minimum required parental contribution before subsidies varies according to family income as such: Annual family income Daily parental contribution (Minimum required before subsidy) $50,000 $19,23 $60,000 $30,77 $70,000 $42,31 $80,000 $53,85 7

10 Drug insurance plan There is a big difference between Québec and Ontario public insurance plans for prescribed drugs. In regards to premiums and contributions required from citizens and coverage, it is difficult to compare both plans. In Québec, all citizens who do not have private drug plans are obligated to integrate the public drug insurance plan, regardless of age or income. In Ontario, the «Ontario Drug Benefit» covers between one quarter and one fifth of the population. In both provinces, lowincome individuals over the age of 65 (recipients at 94% of the guaranteed income supplement) and welfare recipients do not have to pay any costs in Québec, and in Ontario they must pay $2 per prescription. In Québec, full time students and persons under the age of 18 do not have to pay annual premiums. For other citizens, here are some elements of comparison for the year 2013: Québec : Annual premium : varies from $0 to $593 according to income Deductible : $16.25/ month Citizen contribution: 32% of the cost of the prescription, with a maximum monthly contribution of $82,66 Ontario: Annual premium : none Deductible : When patients have paid a deductible equal to 4% of their gross income on prescribed drugs, they can benefit from the Trillium program that usually reduces the cost of additional drugs at a rate of $2 per prescription. Patients must however pay all their drug fees to the pharmacist as long as they haven t reached 4% of their gross income, which come with technicalities in its procedures. Although the Québec drug insurance plan is quite different from Ontario, it typically offers its citizens much better coverage. In Québec, the annual maximum contribution per citizen is $1,584 (premium + monthly contribution) while in Ontario, citizens must spend 4% of their gross annual income on prescribed drugs before they can benefit from the plan. For a citizen who earns the Ontario average income of $47,216, his or her maximum contribution will be $1,888,64 + $2/per additional prescription. Cost of electricity Electricity rates offered by Hydro-Québec to Québec s residential customers remain the lowest in North America. According to a comparative study conducted by H-Q in April 2013, the average rate paid in Ontario by residential customers is 81% higher than in Québec. For every dollar paid out for electricity by a resident of Québec, an Ontario resident must pay out $1.81. On average, the annual electricity bill for a home in Québec will cost $2,700. A similar home in Ontario will cost $4,887, which represents $2,187 more every year. 8

11 Sports, leisure and entertainment The Town of Témiscaming enjoys a full service recreation and cultural centre that includes a swimming pool, an arena, a fitness room, a squash court, curling and auditorial facilities. The town also has a municipal library and several parks and playgrounds in addition to a baseball field. These infrastructures are readily accessible and the fees (based on operating costs) applied by the Town of Témiscaming, are very competitive compared to fees in North Bay as much for services offered by the municipality as those offered by the private sector. A good variety of sporting, cultural and recreational activities are also offered to the people of Témiscaming. The auditorium presents various types of programming throughout the year at very competitive prices. The sports centre has modern facilities that allow for involvement and participation from citizens in sports and leisure activities for all ages: minor hockey, swimming lessons, judo, zumba, aquatherapy, to name a few. In addition to being very affordable for families, the availability of equipment makes life very easy for those who use the facilities. The following is a comparison of ice rental fees charged by both municipalities: Témiscaming North-Bay Ice rental adult $115,25 $180,77 (week-end) $115,25 $142,30 (weekdays) Ice rental - Minor $48,00 $161,82 (week-end) $48,00 $135,55 (weekdays) Public skating No charge between $1,40 & $3,55 (depending on age and period) It s difficult to compare rates since services offered in each discipline and activities vary a lot from one place to the other. In order to better compare the rates offered by the Town of Témiscaming with what is offered in North Bay or elsewhere, we compared other services with what we think is the closest to services offered in Témiscaming. Subscription to gym: Témiscaming : 1 year : $175 (student/senior), $210 (adult), $310 (family) PROGYM N-Bay : 1 year : $369 + tx (student/senior), $449 + tx (adult), no family rate Subscription to swimming pool: Témiscaming: 1 year: $130 (student/senior), 165 $ (adult), $290 (family) 2 Ontario towns: 1 year: $250 (student/senior), $330 (adult), $490 (family) (Public swimming pool in North Bay subscription includes other services, so was not considered) 9

12 Pool-Gym-Squash: Témiscaming : 1 year : $390 (student/senior), $440 (adult), $655 (family) CFB N-Bay : 1 year : $ (student/senior), $ (adult), $1, (family) (Access limited to certain hours, priority given to members of the Canadian Forces Base) As far as cultural events are concerned, we compared shows by the same artists presented in other halls. The fall-winter programming at Dottori Hall in Témiscaming offers 10 shows for only $150 with artists such as Laurent Paquin at $40, Luc Langevin at $45, Marie-Ève Janvier & J-François Breau at $30, Guy Nantel at $33, Étienne Dano at $20 $ and others. Here are the prices of shows in other halls : Laurent Paquin (Val-d Or $46,01 to $50.29), Luc Langevin (Val-d Or $52,43 to $56,71), M-Ève Janvier et J-François Breau (Val-d Or $34,45 to $41,73), Guy Nantel (Val-d Or à $), Étienne Dano (Eastmain $28). We also compared rates for some of the courses offered at The Centre in Témiscaming, such as swimming courses, judo, aquatherapy, zumba, etc The comparison is not easy because we don t know the exact content of these courses. However, according to our study, and based solely on the hourly rates of these courses regardless of the content, the rates are lower in Témiscaming than in North Bay. In conclusion, the Town of Témiscaming offers its residents sports, cultural and recreational services that are very competitive when compared to North Bay and neighbouring communities. The variety and quality of infrastructures available in Témiscaming as well as the services offered, are easily comparable with what is found in North Bay. 10

13 Conclusion The methodology used has the advantage of being simple and built around data collected by Statistics Canada & Statistique Québec, the CMHC and the Insurance Bureau of Canada. We also collected information from Revenu Québec, Canada Revenue Agency, Service Ontario, Hydro-Québec and the Société d assurance automobile du Québec. We also focused on presenting data that is easy to understand and provides objective results. In analyzing the nine points of comparison in this current study, it is fair to say that in most cases, it is financially beneficial to choose the Town of Témiscaming to establish your home. This choice is even more apparent if you are a couple and you have or are planning to have children and certainly more beneficial if you are employed. To facilitate quick consultation of the results, we suggest you read pages 12 and 13 of this report which contain a summary of the different points that were studied and highlight the important differences and gaps to remember. Also, to support the results obtained, Appendix 1 on page 14 presents a schedule of a typical household that highlights the available family income after fulfilling various fiscal and other types of obligations. As we just read, the profile that evolves from a more detailed study of Québec s taxation system is very different than one associated with some persistent prejudgements. In thinking about why a worker from Témiscaming may prefer to live in North Bay, we can assume that his or her reasoning is based on the diversity of services (commercial and others) offered in North Bay. It should be noted that the economic, social and industrial development of a town relies above all, on the will of the people to contribute. The more workers who live in Témiscaming, the more the town s development will be favored, in all sectors. There are currently many projects being developed in the commercial, industrial and mining sectors in Témiscaming and area, which makes choosing Témiscaming even more interesting. This town is also safe, open, easily accessible and offers great development potential at many levels. 11

14 SUMMARY 1- Taxation Single: Quebeckers will pay more taxes when their annual income exceeds $30,000. However, this difference can be compensated by the fact that the real estate market is more affordable and that some of the Quebec rates are more affordable, such as automobile insurance. Couple with 2 children : When considering the tax burden less the different credits and benefits, the net taxation for Quebec families is lower up to an annual income of more than $121,000. The net tax variance is quite important (Schedule 2). 2- Real estate and travelling costs Rent : Average savings of 58% in favour of Témiscaming. Annual savings estimated at $3,732. Owner : Land values and real estate transactions are 48% higher in North Bay than in Témiscaming. For a home purchase of $ 175,000 $ in Témiscaming, we estimate a savings of $84,000 for the purchase and $8,180 annually for mortgage payments and property taxes. Travelling costs : A person who lives in North Bay and works full time in Témiscaming 48 weeks per year, will have to travel more than km (136 km /day) during 480 hours (2 hours/day). We estimate travelling costs to more than $6,000/year (gas, maintenance and wear and tear on the vehicle). 3- Automobile The combination of car insurance premiums, registration and driver s licence fees represent a net saving for a Québec resident. Savings for a couple with two vehicles is more than $6,000 (an average) and is usually much higher when criteria such as age of driver and type of vehicle are added. 4- Tuition fees Tuition fees are 2,75 higher in Ontario than Québec. According to our analysis of some fields of study, the fees are almost 10 times more expensive. Québec students save on average, more than $5,000 a year in comparison with their Ontario neighbours. 5- Consumption taxes Ontario : HST = 13%, Québec GST + PST = 14,975%. Savings of 1,975% in favour of Ontario. 12

15 6- Subsidized Child Care Témiscaming: Availability of 124 subsidized places ($7/day) in Centre de la Petite Enfance and family day care services irrespective of family income. As far as non-subsidized child care is concerned, the combined federal and provincial credits bring the child care fees to almost $7/day (maximum fees eligible: $4,000/child/year). North Bay: Prices vary from one daycare to the next. To be eligible to the subsidy, the childcare service must be administered by the province. This subsidy is paid directly to the childcare service and varies according to the family income and requires a parental contribution before subsidy of 0 to 30% of the income. For example, a couple with a family income of $60,000 must pay out $8,000 in child care before there is no charge. 7- Drug insurance plan There is a big difference between the Québec and Ontario prescribed drug plans. Usually, the Québec plan offers better protection than the Ontario plan. In both provinces, low-income users pay next to nothing, or nothing at all in Québec. In Québec, if you do not contribute to a private plan, you are obligated to register with the public plan. The annual premium is based on income. In 2013, the maximum contribution for a patient was $1, (premium + monthly contribution for prescription drugs.) In Ontario, access to the plan depends on the annual income. When patients have paid a deductible equal to 4% of their income, they can benefit from the plan. For example, if your family income is $60,000, the annual contribution will be $2, $/ additional prescription. 8- Electricity Quebeckers enjoy an average residential rate that is 81% less than Ontario - an annual electricity bill of $ 2,700 in Québec would cost $2,187 more in Ontario. 9- Sports, leisure and entertainment Modern and complete infrastructures and equipment are offered in the Town of Témiscaming. Services are quite comparable to those found in North Bay. Rates offered to residents of Témiscaming are very competitive with the market prices. Another positive aspect for the Town of Témiscaming is the accessibility and availability of equipment and infrastructures as well as events, courses, entertainment, etc. 13

16 Appendix 1 Presentation of a typical household Description of household : Couple with 2 children (4 & 6 years of age) with both spouses working in Témiscaming Annual family employment income of $80,000 gained by both spouse Owners of property whose value is based on average property values in both towns: $175,000 in Témiscaming and $259,000 in North Bay, a mortgage to pay after a down payment of $25,000. The couple owns 2 average size vehicles that are fully paid and at least one of the vehicles is used every day to get to work. Child care fees of $8,000 per year (permissible maximum to various credits) Already registered in a drug insurance plan at work. DESCRIPTION Témiscaming North Bay Difference Témiscaming Income Total employment income $80,000 $80,000 $- Federal Universal Child Care Benefit $1,200 $1,200 $- Canada Child Tax Benefit $1,728 $1,728 $- Ontario Child Tax Benefit $- $- $- Refundable Child Tax Credit (Qc) $2,216 $- $2,216 Various credits (GST, Solidarité (Qc), Trillium (Ont.) $- $- $- Total employment income and government benefits $85,144 $82,928 $2,216 Taxes & current expenses (bases on comparative study) Income taxes (less credits) ($8,452) ($8,628) 176 Mortgage payment ($9,504) ($16,404) 6,900 Municipal and school property taxes ($3,653) ($4,933) 1,280 Electricity for family home ($2,700) ($4,887) 2,187 Child care costs for 2 children ($8,000) ($8,000) $- Registration, permits & insurance for 2 vehicles ($1,697) ($3,304) $1,607 Travelling expenses to work ($960) ($6,000) $5,040 Money available for other family expenses $50,178 $30,772 $19,406 In this presentation of a typical household, representative of many cases, it is clearly demonstrated that it is more beneficial to live in Témiscaming for a couple who works there. Surpluses identified by such a choice significantly favour Témiscaming. The numbers entered in this schedule stem from the analysis presented in Chapters 1, 2 & 3 of this study. 14