....GST two-month “holiday” on so-called essential goods plus a $250 cheque for anyone who earned under $150,000 last year...
It borrows heavily from the Liberals’ rivals. The Conservatives campaigned on a December sales tax break like this in 2021. (The Liberals opposed it then.) The NDP pitched a similar cut last week.
One thing is for sure, the 2024 Liberal version carries a hefty price tag of $6.28 billion — according to early calculations — at a time when Canada’s annual deficit, which Justin Trudeau’s government promised would clock in at around $40 billion, is certain to spike.
But after all, this is the season to give, isn't it? However, the Liberal largesse also comes with a big bill:
....the kiddies who get cheaper diapers or Christmas toys for the next two months will be the ones paying the tab plus interest, for years to come.
David Macdonalt, of the Canadian Centre for Policy alternatives, suggests the money could have been put to better use through 'targetted giving':
Instead of sending $250 to “basically everybody,” Macdonald said the government could have sent $500 or $1,000 to the lowest-earning 30 per cent of workers, or the lower half of workers, and concentrated the help to those most in need of a boost right now.
“Presumably it’s the visibility is what’s important here, more so than necessarily substantially helping folks that are maybe turning to food banks because they can’t afford food.”
Will the Trudeau payout reap the obvious political dividends he is hoping for? Letters to the editor suggest otherwise:
Now the PM is attempting to buy votes
Prime Minister Justin Trudeau is taking a page from Premier Doug Ford’s election playbook and attempting to buy votes. A GST tax holiday that will cost $1.6 billion and a working Canadian rebate, for those earning less than $150,000 that is estimated to cost $4.68 billion. Would it not be better to use this money to assist those who cannot afford to eat in restaurants or buy prepared foods and must rely on food banks, and those who are unemployed or retired and financially struggling who are not eligible for the rebate because they are not working Canadians?
Greg Sheehan, Mississauga
Debt of Christmas splurge will live on long after its recipients are gone
The federal Liberal government was projected to incur a whopping $39.8 billion national financial deficit in 2024/25. This was before handing out a Christmas splurge of a $1.6 billion in GST alleviation, plus a $4.68 billion cash handout to most Canadians. To put this in the context of an individual, it is tantamount to someone with enormous credit card debt celebrating the taking out of a cash advance to increase their debt to enable them to go out on a holiday spending spree and whoop it up. There is one significant difference, however. The principle and interest on the credit card debt must be paid off in the near future by the errant borrower. With a national debt already at $1,453 billion our grandchildren will be paying for this largesse many years after we recipients are long gone.
Anthony Moscrop, Willowdale
Santa is coming, kiddies. As a bonus, all of you get to ultimately decide who deserves to lay claim to his much-coveted head covering.
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