|  Ambassador Bridge protests likely to raise prices Blockades at the Ambassador Bridge from this past week are likely to have wide-ranging impacts on the prices Canadians are paying at the grocery store and on goods of all kinds. With as much as 30 per cent of all land-based trade between Canada and the U.S. done across the bridge connecting Windsor, Ont., and Detroit, Mich., the disruptions at the border crossing are likely to result in further supply shortages and inflationary pressures, says University of Toronto economics professor Ambarish Chandra. In short, expect to pay more for the scarce supply slipping across the Ambassador Bridge and other strained ports of entry. "Any time we see shortages, we see prices rise. And we've seen that with cars, we've seen that with many goods over the course of the pandemic. We're going to see that with fresh food, for sure," Chandra says. With inflation already sitting at a 30-year high in Canada, economists say any further squeeze on prices is only going to encourage the Bank of Canada to deliver on its signal to raise interest rates. Read more here from Global News reporter Craig Lord.  Blockades will have ‘lasting effect’ on supply chains Even short-term blockades at the Ambassador Bridge and elsewhere are likely to have long-term implications for critical supply chains in Canada. The automotive sector specifically has taken a beating with the blockades. Ford, Toyota, Honda Canada and General Motors have all reported either cancelled or reduced production shifts at their plants in Ontario and Michigan in connection with the border protests. “That bridge is the lifeline,” says Flavio Volpe, president of the Automotive Parts Manufacturers’ Association. Some U.S. officials have argued that the disruption to automotive production, following months of global supply chain issues, demonstrates a need to relocate manufacturing resources to their side of the border. "We've seen a lot of supply chain shortages and organizations are re-evaluating their supply chain risks. And there's a huge sentiment in the states about 'Buy America,'" says Fraser Johnson, an operations management professor at Ivey Business School. Read more about the economic impact of the blockades here.  $68 for Team Canada mittens Inflation is also seemingly hitting Team Canada swag tied to the Winter Olympics. Canadians have been voicing their displeasure online with the prices of Team Canada's Beijing 2022 merchandise — a first under the charge of Lululemon, after the Vancouver-based athleisure company signed a deal last year to become the exclusive Olympics outfitter of Team Canada until at least the 2028 Games. Deb Reid from Toronto had been collecting each pair of the iconic red mittens since 2010, when they were first introduced by Team Canada’s apparel retailer, Hudson’s Bay, at a price tag of $10. This year, however, marked a breaking point for Reid. "I looked at the Lululemon site and I was pretty surprised to see the prices. I was OK with The Bay's mittens going up to $20, but $68 for a pair is too much for me,” she said. Some Canadians who spoke to Global News agreed with Reid. Others said that Lululemon’s polyester iterations were higher quality than the earlier knitted versions and worth the price. Read both sides of the debate in this article from Global News’ Ashleigh Stewart and let us know where you land! ________________________ – THE QUESTION – “I was receiving the Guaranteed Income Supplement up to three years ago. With a death in family, the six-figure amount is in an estate account at my bank with me as the executor. Problem is, the federal government cut my supplement because I received too much interest in the estate account — the full six-figure amount that I must ultimately split 50-50 with a family member. My loss is $300 a month the past three years. Hopefully, the estate will be settled this year and I can disburse funds to family and myself.
1. Can I keep my above loss before distribution to family?
2. My bank has an account that does not pay interest. Once the estate is settled, can I move my share of funds to it so my supplement will restart, as no interest will be generated?” — A Money123 reader “Thank you for your question; this is a great topic to bring to readers. It sounds as though there are a few moving pieces to this question, so I will do my best to answer with the information provided. Generally, when someone passes away, there is a terminal tax return filed for the income up to the date of passing. Then additional estate returns (T3 returns) are filed for any income earned after death until the estate is administered and no longer earning income. The estate, as a separate entity, would pay the taxes on the income earned in the estate, so when the beneficiaries receive their inheritance, it is after taxes have been paid and no income is included on their personal tax returns. Guaranteed Income Supplement is calculated based on your personal income tax situation and income declared in that particular year. If the income and taxes are calculated and paid through an estate return, there should be no income changes to your personal tax return and, therefore, no changes to your Guaranteed Income Supplement. However, it sounds like the income being earned with the estate funds may have been reported on your personal tax return. Therefore, I would suggest speaking with your accountant and estate lawyer to confirm a) where the income for the estate funds have been reported and b) if it's been included on your personal tax return, find out the best way to correct it, which may also impact the proposed distribution plan for the beneficiaries.” -Debbie Stanley, senior estate manager, ETP Canada Inc.
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