In a speech to the Canadian Club in Toronto, NDP leader Jagmeet Singh laid out a pre-election campaign pledge of removing the GST on certain “essential” items like ready-made food, diapers, home heating, and mobile phone and internet bills—all of which he would finance through an “excess profit tax” on large corporations. It is possibly the dumbest economic policy possible, but our politics are moving into an absolutely brainless phase of populism.
Removing the GST on these items will have a negligible impact, particularly for those in low-income brackets. If anything, most of those reductions will benefit higher-income households, such as the GST cut on home heating (because wealthier households have bigger houses that take more fuel), and it when it comes to apartment buildings, the cut has little impact, or for places with electric heat, how exactly do you disentangle how much of the hydro bill is heat versus other electricity usage? I know that the NDP have been pushing this policy for years now, long before Singh was leader, but has anyone thought about it for more than five seconds?
In addition, making more exceptions to the GST are hard to administer, and it will reduce the GST rebates that lower-income households rely on. And promising the “excess profits” tax is basically an arbitrary exercise in determining what they consider “excess,” and that will basically be how much they think they can soak out of these companies, who will inevitably engage in creative accounting to suddenly lower profit margins or incur paper losses to avoid paying said tax, and all of the things the NDP had hoped to spend that windfall on will blow away like ashes in the wind. This isn’t progressive policy, but the NDP are going to pursue it anyway because they think that they can get the populist win here, when it’s almost certainly going to fail.
Ukraine Dispatch
A combined Russian strike hit a residential building and energy installations in Odesa, killing one on Thursday evening. As well, the Russian assault on Kupiansk in the northeast broke through the outskirts of the city, but were eventually repelled.
⚡️Russia threatens to expel UN monitors from Zaporizhzhia nuclear plant.
IAEA experts may only remain at the occupied nuclear facility "as long as our country considers their stay there to be justified," Russia's Foreign Ministry warned.https://t.co/EKQ3rBKPbh
— The Kyiv Independent (@KyivIndependent) November 15, 2024
⚡️UPDATED: Russian mass drone strike on Odesa kills 1, injures at least 8.
One woman was killed and at least eight civilians injured in a "massive" Russian drone strike that damaged apartments, a church, vehicles, and critical infrastructure.https://t.co/FoMhrThvao pic.twitter.com/2KEqpN7dqC
— The Kyiv Independent (@KyivIndependent) November 14, 2024