Federal Conservatives opposed to tax break and rebate

Tax break's 'minimal' effect

Photo: Contributed

Central Okanagan-Similkameen-Nicola MP Dan Albas

In my column last week, I discussed two recently announced proposals from the Liberal government that responded to what the finance minister called a "vibecession" here in Canada.

For context, a "vibecession" refers to a disconnect between a country's actual economic performance and the public's negative perception of it. Essentially, the Minister of Finance was arguing that it was Canadians sense of their quality of life that was the problem, not the economy.

To counter those “bad vibes”, the government of Prime Minister Justin Trudeau proposed two programs. The first is a GST Christmas Holiday—a temporary expansion of GST-exempt items running from Dec.14, 2024, to February 15, 2025.

The second program was the proposed Working Canadians Rebate, a $250 payment planned for early spring 2025. The rebate would go to 18.7 million Canadians who worked in 2023 and earned up to $150,000 in individual net income. The “so called” rebate was found wanting by many Canadians, who quite rightly pointed out it excluded persons with disabilities and retirees in favour of those making six-figure incomes.

I say “so called” rebate because many pointed out to me these cheques will not be rebates, but money borrowed by the federal government, added to our deficit and ultimately paid (back) by our children and grandchildren in higher taxes down the road.

Those who regularly read this column will note we have essentially doubled our interest payments servicing the federal debt. As of the last budget, the expected debt servicing for this year will cost more than $52 billion, far more than we spend on health transfers to provinces or the Canadian Armed Forces.

Following up on my column from last week, I can now confirm the GST Christmas “holiday" — the temporary expansion of GST-exempt items — passed second reading in Parliament, despite opposition from the Conservative Party.

Why did the official Opposition oppose this measure? Conservative Leader Pierre Poilievre made the party's position clear (his MPs) support permanent tax reductions, such as eliminating the federal carbon tax and removing GST on new housing up to $1 million in value.

(Conservatives) oppose these temporary tax measures, arguing they will provide minimal benefit to Canadians, while creating administrative burdens for retailers who must navigate unclear federal guidelines about which items qualify for the temporary GST relief.

The second proposed measure, the $250 Working Canadians Rebate, was withdrawn by the Liberal government and did not come before the House for a vote. The reason for the withdrawal was related to the fact none of the opposition parties were prepared to support that policy as it stood.

Opposition parties cited several key concerns—the program would fail to help those most in need, it represents poor tax policy and more spending can lead to more inflation.

To date, Trudeau has not indicated whether, or how, he will modify the proposal to address those concerns and gain support from one or more of the opposition parties.

A recent Leger poll reported by the National Post found only one in five respondents considered the tax holiday and promised $250 cheque "good measures" that would help people cope with inflation. The poll also revealed Canadians overwhelmingly view these policies as "purely electoral."

This comes amid recent news reports where former Bank of Canada governor Stephen Poloz stated, "I would say we're in a recession—I wouldn't even call it a technical one."

This brings me to this week's question:

Based on your own experiences, what do you think is the current state of Canada's economy?

I can be reached at [email protected] or call toll-free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Making sense of the government's Christmas GST exemptions

The GST Christmas 'holiday'

Photo: Contributed

Central Okanagan-Similkameen-Nicola MP Dan Albas

Being in opposition comes with the crucial responsibility of holding government accountable—a duty I take very seriously. The role demands thorough due diligence and scrutiny of government policies and actions.

Over time, opposition parties typically recognize patterns in how the government they scrutinize operates, making few government policies truly surprising. However, in the past week, all of that changed when the Liberal government announced two measures that took many who follow Canadian politics by surprise.

The first measure was a GST Christmas “holiday"—a temporary expansion of GST-exempt items from Dec. 14 to Feb. 15.

Many of the items that will soon be temporarily GST-exempt are likely to appeal to Canadian families. They include children's clothing and shoes, car seats, diapers and toys. The list extends further to include books, print newspapers, puzzles and Christmas trees—both real and artificial. Moreover, all restaurant dining will be GST-exempt during this period, whether dining in, taking out or ordering for delivery.

The list of temporary GST exemptions also includes several controversial items such as beer, cider, pre-mixed alcoholic drinks, “junk” foods and expensive video gaming terminals, which will all become cheaper during this GST-free period.

The (government’s) gift-giving does not end there. It has also announced the "Working Canadians Rebate," which will send a $250 cheque in early spring 2025 to 18.7 million Canadians who worked in 2023 and earned up to $150,000 in individual net income. Those who are disabled or unemployed will not qualify for the $250 rebate.

To be clear,while those earning up to $150,000 will receive this rebate, those most in need, people with disabilities and the unemployed, will not qualify for this government program.

The Liberals' GST Christmas holiday is estimated to cost $1.6 billion, while the $250 Working Canadians Rebate will cost approximately $4.7 billion—bringing the combined cost to over $6 billion. In provinces with harmonized sales taxes (HST), this unilateral action will have an even greater impact, as their HST rates range from 13% to 15% and not just the 5% GST we have in British Columbia.

If you're wondering why the government believes these programs are necessary, the finance minister recently stated, "People have been talking about a “vibecession”… and the fact that Canadians just aren't feeling that good."

That begs the important question, what is a vibecession? According to various urban dictionary definitions, a vibecession is a neologism that refers to a disconnect between the economy of a country and the general public's negative perception of it.

In other words, the government believes the economy is performing better than many Canadians perceive it to be. These programs are designed to help Canadians "get past that 'vibecession' because how [they] feel really does have an economic impact"—again, to quote the finance minister directly.

My questions to you this week:

Do you agree with the finance minister that Canada is experiencing a "vibecession"—that is, is the economy actually performing better than many Canadians believe it is? Why or why not?

I can be reached at [email protected] or call toll free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

MP defends ongoing Parliamentary impasse

Opposition demands docs

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Central Okanagan-Similkameen-Nicola MP Dan Albas

Approximately one month ago, I noted in my column that the House of Commons was at an impasse due to an ongoing debate on a motion of privilege.

This privilege motion stems from House Speaker Greg Fergus's ruling the Liberal government "did not fully comply" with a House of Commons order.

The order, akin to a court order, required the government to provide documents related to the now-defunct Crown corporation, Sustainable Development Technology Canada (SDTC).

As many now know, the auditor general's audit of this program uncovered serious issues. Conflict-of-interest policies were ignored 90 times, resulting in $59 million awarded to 10 ineligible projects. Even worse, the program often exaggerated the environmental benefits of its projects.

As recently as this week, the House law clerk once again tabled a letter in Parliament, indicating the government continues to redact or withhold some of the documents. Despite withholding the documents, the government continues to accuse the Opposition Conservatives of holding Parliament hostage as this privilege debate has persisted for nearly two months.

The Conservatives, along with the NDP and Bloc Québécois, maintain a united stance—demanding the government comply with the order to produce all documents unredacted.

In my view, Canadians deserve to know what really happened here. No federal government should be able to hide the truth from the people it serves.

Remember, this is a government that spends billions upon billions under the guise of fighting climate change. Similarly, it has implemented a federal carbon tax that is driving up inflation in Canada, including raising prices on groceries.

In many Canadian provinces where the federal carbon tax applies—or in British Columbia, where the provincial government has agreed to increase its carbon tax in line with the federal rate—residents face additional costs during cold winter months if they heat their homes with natural gas or propane.

Despite the Liberals' insistence their plan is working, Canadians consistently encounter independent evidence suggesting otherwise.

This week, for example, the International Climate Change Performance Index released its latest results. The CCPI employs a standardized framework to evaluate the climate performance of 63 countries, which collectively account for more than 90% of global greenhouse gas emissions.

Canada ranked 62nd on the list and is rated as a "very low performer." This ranking is significant.

Considering the fiscal burden many Canadians face due to carbon taxes and the misappropriation and abuse of funds in programs like the now-defunct Sustainable Development Technology Canada (SDTC), it's clear Canadians aren't getting the results they're paying for.

Furthermore, when the government withholds and conceals documents from the SDTC fund, Canadians are deprived of the transparency and accountability they rightfully deserve.

My question this week:

Do you agree with the Opposition parties' current action in Parliament to maintain the privilege debate until the government complies with the order to produce all of the SDTC documents unredacted? Why or why not?

I can be reached at [email protected] or call toll free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Opposition MP accuses government of a 'double standard'

Planes, heat and CERB

Photo: Contributed

Central Okanagan-Similkameen-Nicola MP Dan Albas

The media reported recently that Prime Minister Justin Trudeau boarded the Government of Canada's private Challenger jet to fly to Bermuda to attend the funeral of a family friend.

Reports indicate jet costs approximately $12,000 per hour to operate. The round trip from Ottawa to Bermuda will emit an estimated 62,000 pounds of CO2.

I'm not mentioning these details to criticize the prime minister for attending a personal family friend's funeral. Similarly, I acknowledge this costly method of air travel is as necessary for our current prime minister, as it was for previous prime ministers, due to important security requirements.

That said, many Canadians are similarly compelled to use their furnaces during extremely cold winter months when heating with natural gas or propane to stay warm.

Despite that, unless you heat with home heating oil (which the prime minister exempted from the federal carbon tax), you'll face additional carbon tax costs for heating your home with natural gas or propane. What's more, on April 1, 2025, that carbon tax rate will increase yet again.

So, while Canadians are asked to understand the prime minister's need for a private jet, (Conservatives’) requests as members of the official Opposition that Canadians shouldn't be penalized for heating with natural gas or propane, fall on deaf ears.

The prime minister and his environment minister continue to demand Canadians "do a little more," while seemingly placing no expectations on themselves to change their own behaviour.

This situation mirrors the issues with the former Canada Emergency Response Benefit program. In my riding, some Canadians were later deemed ineligible for CERB payments through no fault of their own. Initially told they qualified, those individuals applied, only to be later informed a mistake occurred and they were found ineligible due to a technicality. In those cases, the Canada Revenue Agency demanded repayment of every dollar disbursed.

Some may remember a recent audit of Sustainable Development Technology Canada by the auditor general, found 10 out of 58 examined projects were ineligible. Those 10 projects received $59 million despite failing to meet key requirements outlined in the contribution agreements between the government and the foundation.

That raises an obvious question: Will those companies be required to repay the funds they were not eligible for? The Liberal government refuses to provide an answer, and so far, there have been no reports of any clawbacks.

This is part of an ongoing trend I've observed. The government asks Canadians to do, or pay, a little more, while the prime minister and cabinet show no leadership by example.

My question this week:

Is it acceptable for the Liberal government to maintain a double standard—demanding actions from Canadians that its own leadership fails to demonstrate? Why or why not?

I can be reached at [email protected] or call toll free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.