Singh proposes war-time Victory Bonds

NDP leader Jagmeet Singh on Thursday proposed issuing Victory Bonds to fight an economic war with the United States.

The war-time measure, launched in Canada during the First World War and used again in the Second World War, would raise bond revenues that would be tax-free if held to maturity, Singh told reporters.

The NDP’s plan would have Ottawa sell five- and 10-year bonds that Canadians can buy through a payroll deduction.

The NDP is promising that none of the money raised through the plan will go into general revenue or program spending.

“Money from Victory Bonds will be dedicated entirely to getting Canadians to work building public infrastructure like: roads, rail, housing, waterworks, ports, that we will own for generations," the party said in a program explainer, per the CBC.

"We are in a trade war, and just like other wars, we will use victory bonds to support the trade war effort."

The world war Victory Bonds served as a loan to the federal government that Canadians could cash in after a fixed term of five, 10 or 20 years.

The NDP promises its Victory Bonds program would pay an interest rate 0.25% higher than an average five-year bank-issued guaranteed investment certificate (GIC).

Bonds issued today would pay compounding interest of 3.5%, said the party.

However, administering the program would be costly — approximately $80 million.