Roundup: The worst policy for retail politics reasons

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.

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QP: Speaker Fergus walks into the trap set for him

The PM was wrapping up at the G20, while his deputy was also elsewhere, as were most of the other leaders. Andrew Scheer was there to lead off, and he listed a bunch of specious allegations around Randy Boissonnault, and Boissonnault responded that he had nothing to do with the person in question. Scheer tried again, listing more salacious allegations, and this time Jean-Yves Duclos responded with the usual lines about Pierre Poilievre not getting his security clearance. Scheer then cited a tweet from Jody Wilson-Raybould that took a swipe at Boissonnault and then got into a back-and-forth with Speaker Fergus about which words he used weren’t parliamentary. Karina Gould got up to to decry the disrespect the Conservatives have been showing the Chamber, and had to start over after a lengthy intervention by the Speaker, who was pretty much exasperated by this point. Fergus then threatened to start taking questions away, before Luc Berthold got up to give the same talking points about Boissonnault in French, and Gould again got up to say that Boissonnault has answered, and it was time to stop the partisan games. Berthold tried one more time, got warned about the use of a first name, and Gould again got up to moralise about how the Conservatives are making a joke of this place.

Fergus has pretty much lost the entire Chamber. This is utterly ridiculous. #QP

Dale Smith (@journodale.bsky.social) 2024-11-19T19:32:20.904Z

Alain Therrien led for the Bloc, and railed about their fraud perpetrated against the CRA and the hunt for the whistleblowers. Marie-Claude Bibeau insisted that this was false and that they took it seriously, and that the Privacy Commissioner was involved. Therrien went on a tear about CRA trying to protect their own backsides, and Bibeau replied that they have not hidden anything and that that they have taken action.

Alexandre Boulerice rose for the NDP, and demand the government adopt the NDP’s economically illiterate GST cut plan. François-Philippe Champagne agreed with the framing device that the Conservatives would only cut, while the government is investing in Canadians. Leila Dance made the same demand in English, and Jenna Sudds also agreed that the Conservatives will cut before praising the school food programme.

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