Member of Parliament for Yellowhead, Gerald Soroka says he is disappointed in the federal Liberals’ 2024 budget and that it will not benefit Canadians in the long run.
Soroka also says much of the budget is just more of the same from the Liberal government.
“We’ve got inflationary deficits. How do you manage this? Well, you just keep creating more deficits, apparently.”
Soroka adds, he predicts little overall benefit for people in the Yellowhead constituency, or anywhere else in Canada.
“There’s always parts of the budget that are going to help in certain sectors here or there,” says Soroka. “With all the inflationary spending and the carbon tax, the price of everything else is being increased. So whatever offsets they’re doing, it’s going to be more than taken back by inflation, or interest rates or the carbon tax.”
The Liberals say the $535 billion budget includes $8.5 billion over five years to help build millions of homes and another $2.6 billion for student aid and grant programs.
The budget also commits funding to the first phase of national pharmacare and promises federal standards for long-term care – two commitments the Liberals made to the NDP.
The federal NDP has not yet said if it will support the budget and keep the Liberals in power. Soroka says he’s not holding his breath.
“Like every other time the NDP have always complained and argued how poor the government is doing, and then turn around and support them at every step and turn,” says Soroka. “So I wouldn’t be surprised if they do the exact same thing with this.”
Finance Minister Chrystia Freeland said she is maintaining the fiscal anchors she set for the government, keeping the deficit below $40 billion and to less than one per cent of GDP starting in 2026-27.
Ottawa says it is paying for some of that with better-than-expected economic growth, but also with targeted changes to the capital gains tax that are expected to raise more than $19 billion over the next five years.
Currently Canadians only pay taxes on 50 per cent of the money they make from capital gains, which refers mainly to profits made from selling an asset like a stock.
Freeland is adjusting that to 66 per cent for all capital gains made by corporations and trusts, and for those that exceed $250,000 for individuals.
She said the change should affect 0.13 per cent of Canadians who have an average annual income of $1.4 million. She said she knows the tax increase will generate blowback.
“But before they complain too bitterly, I would like Canada’s one per cent — Canada’s 0.1 per cent — to consider this: what kind of Canada do you want to live in,” she asked in her speech.
(with files from the Canadian Press)
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