So, here is the burning seasonal question: Have you wrapped up all your Christmas shopping yet? If yes, well, you may get comfort and joy in knowing you will avoid the stress of the last-minute buying frenzy. Most years, consumers strive to get their purchasing out of the way as soon as possible.
However, those who hesitate may actually have an advantage this year, depending on what is on their shopping list. The dawdlers who are still buying holiday gifts are in luck.
As everyone knows, December 14 is the first day of the big two-month tax break, brought to you by the federal government, and our hard-earned tax dollars.
You thought Ontario Premier Doug Ford was generous when he announced every Ontarian would get a $200 “taxpayer rebate” next year? He looks like Scrooge compared to our Prime Minister.
If Justin Trudeau’s planned relief package ever becomes a reality, Ottawa will be giving a new $250 Working Canadians Rebate payment to 18.7 million Canadians in early spring 2025. The rebate has been put on hold following protests that it did not help all Canadians.
But the government is proceeding with lifting the HST/GST between December 14 and February 15 on snacks, groceries, restaurant meals, children’s clothing, toys, books, winter holiday decorations, and more.
“The past few years have been challenging. It feels like the price of everything has gone up. And while inflation is cooling and interest rates are dropping, we know that Canadians aren’t feeling that in their household budgets yet,” the Prime Minister says. “Our government can’t set prices at the checkout, but we can give Canadians more money in their pocket – to help them afford the things they need and save for the things they want.”
The government says removing the GST from qualifying goods for two months would provide an estimated $1.6 billion in federal tax relief.
A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would realize GST savings of $100 over the two-month period.
In provinces where the HST will also be removed from qualifying goods, including Ontario, further savings would be realized. In Ontario, the same $2,000 basket of qualifying purchases realize HST savings of $260 over the two-month period.
Is this a great country, or what? Who does not appreciate having a few more dollars to spend, before the doldrums of winter set in?
This gift is not cheap, obviously. Economists estimate the entire package will cost about $6 billion. But there will be a dividend in that there will be a boost in gross domestic product growth in early 2025 because consumer spending will have increased.
Of course, not everyone is happy. That is why the $250 payment has been suspended.
The post-Christmas present would not be given to all Canadians. The original idea was to give the rebate to all Canadians who worked in 2023, or received Employment Insurance benefits, and who earned less than $150,000. The federal New Democrats and the Bloc Québécois have contended the holiday package should be expanded to help more people.
Businesses and provincial leaders are squawking about the two-month tax exemptions. Retailers are bothered because they have to reprogram their systems to differentiate between taxable and non-taxable products. The GST/HST will be lifted from prepared foods, vegetable trays, pre-made meals and salads, and sandwiches, restaurant meals, chips, candy, and granola bars, beer, wine, cider, and most pre-mixed alcoholic beverages. children’s clothing and footwear, car seats, and diapers, children’s toys, such as board games, dolls, and video game consoles, books, print newspapers, and puzzles for all ages and Christmas trees.
Even though Doug Ford has applauded Trudeau for giving back some money to taxpayers, provincial governments will lose revenues from the uncollected taxes.
And, predictably, the federal Conservatives condemn the relief measures as being very bad.
Plus, there are the usual charges from various quarters that this is just another example of woke socialists trying to destroy what remains of our country.
Cynics fret that the government is racking up more debt in a cynical effort to appease the restless masses.
This is indeed just another attempt at vote-buying. Trudeau is desperate to slow his plunge in the polls. The Grinch is more popular than the PM.
Like Ford, Trudeau is using our money to curry favour with the voters. Yip, fiscal restraint has gone out the window, friends.
But, at this time of year, how many people actually lose sleep over government fiscal policies and the impact on the GDP? We will pay now or pay later. We will take whatever we can get.
Those who really absolutely despise this generous gesture on the part of our federal government could simply return their money or donate it to a good cause.
And now we must pose another seasonal question: How are you going to spend your unexpected Christmas bonus? Let us know what you think at rmahoney@seawaynews.media
