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From-The-Hill

Helping Canadians through tough times

Tax cut, rebate not enough

As the snow begins to fall, we are reminded that the holidays are just around the corner.

But, as we reach for the thermostat on these colder days, we face the reality that so many Canadians are finding it harder than ever to make ends meet. The rising cost of living has stretched family budgets to their breaking points, leaving people struggling to afford basics like food, housing, and utilities—let alone gifts and celebrations.

The NDP has been pushing for the removal of GST on daily essentials in an aim to address affordability in a substantial and permanent way. While the Liberal government has partially responded with a winter GST holiday on some items, the measure falls terribly short and ignores our calls for removal of GST on bills like home heating, internet and cell phones, and essentials like diapers.

Moreover, the exemptions will only provide temporary relief. It’s clear much more needs to be done to address the systemic issues that are leaving Canadians behind.

The government’s secondary proposal to offer relief this holiday season is the Working Canadians Rebate, offering a $250 cheques to individuals who earned up to $150,000 in 2023.

For single individuals with no children, the maximum payment will be around $234, while families with children could receive up to $467.

If passed, the rebate plan will send a one-time cheque to eligible individuals and families before the holidays. The plan could be a quick way to put money into the pockets of those who need it most and help Canadians with soaring grocery bills and other essentials. But this too is terribly flawed.

While this initiative aims to provide immediate relief, it notably excludes seniors and people with disabilities who aren't part of the workforce—a significant oversight that the NDP cannot support.

The NDP has emphasized that any affordability measures must include all vulnerable Canadians, not just those currently employed. We need to make sure that all Canadians who are struggling get the help they need. We have made it clear to the government we will not support the proposed bill unless it is amended to extend the $250 rebate to seniors and individuals with disabilities who are not working.

Moreover, what is needed is the permanent elimination of the GST on daily essentials to provide ongoing support to struggling families, not just a brief tax holiday.

We’ve been vocal about the inadequacy of one-time payments as a long-term solution. The NDP believes the government needs to take a more comprehensive approach to tackling the affordability crisis.

While we may support immediate relief measures like this rebate if they are expanded, they’re band-aid solutions at best. The NDP will continue to push for several additional measures to support Canadians during these tough times.

We’re calling for meaningful investments in affordable housing, increased social assistance rates and further action to address corporate greed in sectors like grocery and oil.

As well, a permanent removal of GST on essentials would provide ongoing relief to low- and moderate-income Canadians, ensuring they’re better equipped to weather economic challenges.

Canadians are working harder than ever but too many are still cutting back their grocery lists and cancelling activities their kids love because of rising costs. Meanwhile, billionaires and big corporations continue to enjoy tax breaks and record profits. That’s why the NDP has consistently called for measures like a windfall profits tax on large corporations, ensuring wealth is redistributed to those who need it most.

The holiday season should be a time of joy, not stress and worry. Yet, for far too many Canadians, it will be a season of tough choices and financial anxiety. While the government’s GST holiday and rebate plan offer some hope, it’s clear we need to think bigger. Canadians deserve a government willing to address the root causes of the affordability crisis and build a society where everyone can thrive, not just scrape by.

As an MP, I will continue to advocate for meaningful solutions that put people first. It’s time for real leadership and bold action to ensure that no one is left behind.

This holiday season let’s not just talk about the spirit of giving, let’s act on it.

Richard Cannings is the NDP MP for South Okanagan-West Kootenay.

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



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