Roundup: The worst policy for retail politics reasons

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With the smell of desperation lingering in the air, Justin Trudeau and Chrystia Freeland announced a “GST holiday” for two months on all sorts of items—ready-made meals, children’s clothes, diapers, books, toys, beer, alcohol below a certain percentage, restaurant meals, you name it—to happen between December 15th and February 15th, to be followed by $250 cheques in April for anyone who worked in 2023 and whose household income is below $150,000 (so, not the top five percent of wage-earners).

OMG this two-month GST holiday is the dumbest idea ever. Who came up with this? Did they read any of the literature from the US sales tax holidays on school supplies? Includes restaurant meals, takeaway, fastfood, beer, wine, in addition to kids clothes, toys, etc.

— Dr Lindsay Tedds (@lindsaytedds.bsky.social) 2024-11-21T16:23:50.682Z

It’s absolutely terrible economic policy, it’s poorly implemented (and is going to be an absolute nightmare all around to ensure implementation happens) it will benefit higher-income households disproportionately, and it’s not going to do any favours for the deficit situation that they insist they want to put on a downward trajectory, but it’s apparently good retail politics. (And good for the restaurant industry, particularly during their slower months, but a dog’s breakfast for retailers). Apparently, the Liberals are frustrated that all of their good work with the Canada Child Benefit, $10/day childcare, dental care and any incoming pharmacare deal with provinces (and not to mention rebounding faster from the pandemic and tacking inflation faster than any other comparator government) isn’t helping them in the polls, so they’re resorting to direct bribes, because reasons. It’s so stupid. We live in the stupidest times, and everyone is just going along with it.

If this GST holiday is an NDP initiative then I ask them what do they think this accomplishes over enriching the GST/HST refundable tax credit. The primary beneficiaries of the tax holiday are high income households. The primary beneficiaries of an enriched rebate are low income households.

— Dr Lindsay Tedds (@lindsaytedds.bsky.social) 2024-11-21T16:40:37.584Z

I haven't calculated the impact of this GST holiday but if consumption doesn't drastically change, this GST holiday will likely mean that families in high income deciles will see a large reduction in the GST paid whereas families in lower-income deciles will see more moderate declines.

— Gillian Petit (@gillianpetit.bsky.social) 2024-11-21T17:22:59.293Z

As a reminder that ableism starts by imagining a lack of disability as the normal or default state for members of society and permits or even promotes the unequal or inferior treatment of persons with disabilities. Linking the GST rebate to working income is ableism.

— Dr Lindsay Tedds (@lindsaytedds.bsky.social) 2024-11-21T17:11:20.096Z

Amendment! Not quite no matter what. Backgrounder says “earned up to $150K net”. But that’s a bit fudgy. It could be total net income but it doesn’t say that. If I have $140k in wage income but $25k in investment income do I qualify?

— Jennifer Robson (@jrobson.bsky.social) 2024-11-21T20:11:22.726Z

Part of this was a sop to the NDP in the hopes that they would help end the filibuster in the House of Commons, but they’re not all that keen on that (as they are happy to watch the Liberals twist in the wind), and are talking about trying to push a programming motion to pass the bill with these promised tax changes in a single day, which is not terribly bright, and the government really, really needs to actually pass the capital gains changes, because they’re already being applied while the legislation has been held up by this filibuster. Can the government play hardball with the NDP to break the filibuster and send the privilege matter to committee? I guess we’ll wait and see.

Ukraine Dispatch

Russia fired new hypersonic intermediate-range ballistic missiles at Dnipro on Tuesday, claiming to be in retaliation for long-range strikes inside Russian territory, hitting an industrial enterprise and a rehabilitation centre. (Curiously enough, a Russian spokeswoman was giving a briefing on the missiles when she was called mid-conference and told not to talk about them). Russia’s strikes over the weekend have badly damaged Ukraine’s largest private power producer, while Russians are now claiming they have taken the village of Dalne in eastern Ukraine.

Good reads:

  • During his press conference, Trudeau was asked about the ICC arrest warrant for Benjamin Netanyahu and spoke about the importance of following international law.
  • Mélanie Joly says she takes it as a good sign that Trump praised the New NAFTA agreement while he announced his pick for ambassador to Canada.
  • Bill Blair says the long-promised air defence system we bought for Ukraine is finally in their hands.
  • Marc Miller says the government is looking to crack down on fraudulent job offers made expressly for immigration purposes.
  • Anita Anand says the extra screening for passengers going to India has been lifted.
  • The National Security Advisor says she doesn’t know of any evidence linking Narendra Modi, his external affairs minister or security advisor to murder plots.
  • Greenpeace protesters were arrested outside of Stornoway. (Don’t protest people’s homes, that yes, that includes official residences!)
  • Opposition parties on the Indigenous Affairs committee want to do a study of Randy Boissonnault’s previous claims, because of course they do.
  • New York consul general Tom Clark was back at committee, under oath, to again swear that he didn’t direct the purchase of the residence.
  • Yves-François Blanchet took a trip to the Senate to try and convince them to not vote to amend the Bloc’s Supply Management bill.
  • Doug Ford plans to immunize the province from any lawsuits if cyclists are injured or killed because of removed bike lanes. (Sounds like an admission!)
  • Nathaniel Erskine-Smith lays out some very relevant facts about the SDTC situation and the current (banana republic) filibuster in the House of Commons.
  • Paul Wells offers the perfect snark for Trudeau descending to the populist depths of sending cheques when his progressive policies have failed to grab voters’ attention.

Odds and ends:

Need a copy of my book “The Unbroken Machine,” or “Royal Progress,” which I contributed to? Want to give a copy as a gift? Dundurn Press is having a 25% off site wide sale!

— Dale Smith (@journodale.bsky.social) 2024-11-18T23:53:05.945Z

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2 thoughts on “Roundup: The worst policy for retail politics reasons”

  1. New York consul general Tom Clark was back at committee, under oath, to again swear that he didn’t direct the purchase of the residence.

    Would it not be easier on everyone if he simply sent a note to the chair(s) saying, “Please see text and video of my first appearance before you”.

    The MP’s could pretend to watch the video and Tom Clark might be able to get some real work done.

    Reply ↓

  2. There’s a whole industry built around dumping on Trudeau and the Liberals. Even when they support his policies, there’s so many caveats and disclaimers and outright insults, you have to squint to make out the support. Meanwhile, Polievre is getting a free ride. He comes up with take GST off homes and the economists can’t get to the podium quick enough to heap praise on a policy even I can see isn’t all that.

    The opinionators have been saying for years that the Liberals are ignoring the middle class with their policies. Now they’re mad about this.

    I don’t love this policy. But I’m really starting to hate with a passion the negativity that has become the water we’re swimming in. And it’s not generated by the Liberals, whose attempts to stay positive are also met with jeers.

    Personally, I’d like to see efforts get poured into our NATO commitment. But there’s not a chance in this atmosphere.

    Reply ↓

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