Prime Minister Justin Trudeau on Thursday outlined pre-election perks for taxpayers that open a budget hole worth $5 billion to $10 billion, figures show, per Blacklock’s Reporter. The finance department declined comment on the impact on this year’s deficit that is already 17% over estimate.“Everybody had to tighten their belts a little bit,” Trudeau told reporters.“Now we’re going to be able to give a tax break for all Canadians.”“How does the government plan to pay for this?” asked a reporter. “Canada has the strongest balance sheet in the G7,” replied Trudeau.Trudeau said all Canadians who filed tax returns and earned less than $150,000 annually would receive a $250 cheque. “We are not going to send a $250 rebate cheque to millionaires,” he said.“We are sending it to people who are working who make less than $150,000,” said Trudeau. “I would highlight costs have gone up for everyone. Even someone making $130,000, $140,000 a year is cutting back on restaurants.”.UPDATED: GST vacation offers holiday relief for Canadian families; $250 cheques next year.A total 29,268,590 taxpayers last year reported income under $155,625, the 26% tax bracket, according to annual individual tax statistics by the Canada Revenue Agency. Mailing each person a $250 cheque represents a $7.3 billion cost.The Department of Finance estimated few Canadians would qualify, about 18,700,000 tax filers, representing a $4.7 billion cost. It did not explain its figures.NDP leader Jagmeet Singh said his caucus endorsed the $250 cheques.“We support that,” he told reporters.“We are not going to oppose people getting some help. It’s not the way we would have done it but we’re not going to oppose people getting some help.”“Obviously we’re going to support people getting a break. It’s not the way we would have done it but we absolutely need to get a break for people and we’re going to support that and make sure it gets passed as quick as possible.”.‘TEMPORARY TAX TRICK’: Poilievre not buying Trudeau’s ‘GST Holiday’.Cabinet also proposed to suspend 5% GST collections on selected items in the period from December 14 to February 15. No cost was detailed. The Goods and Services Tax on all goods was worth $46 billion last year.The tax holiday would apply to a range of goods including beer, books, Christmas trees, diapers, children’s clothing and footwear, granola, jigsaw puzzles, maple syrup, newspapers, pre-cooked meals, pudding, road maps, snacks, soda, sugar, toys, video game consoles and wine, according to a finance department backgrounder memo. No legal text of tax amendments was tabled.Opposition leader Pierre Poilievre told reporters he wanted to see the actual text of cabinet’s proposal.“You’re asking me if I’m going to vote for today’s press release and press conference?” said Poilievre.“I don’t vote for press releases and press conferences. Canadians cannot eat or live in press releases or press conferences. Let’s see what they put before us.”“That sounds like a trick,” said Poilievre.“A trick. Are you fooled? You don’t look like you’re fooled.”The promised rebates and tax holiday follow an October 17 warning by the Budget Office that cabinet had already overshot this year’s deficit target by at least 17%. The deficit originally estimated at $39.8 billion was closer to $46.4 billion, analysts wrote in an Economic And Fiscal Outlook October 2024 report.Finance Minister Chrystia Freeland in her April 16 budget Fairness For Every Generation had promised to control spending. “It would be irresponsible and unfair to pass more debt to the next generation,” she said.“We absolutely believe it is important for the federal government, or any government, to be careful in the way we spend money,” said Freeland.“It is not our money, it is the money of Canadians, and they quite rightly expect us to be really thoughtful.”
