Rising housing costs? Unaffordable food? Canadians on the verge of bankruptcy? No, Canada’s economy is actually doing great and better than everywhere else, according to Finance Minister Chrystia Freeland.
She suggested as much and claimed that Canadians thinking the contrary wasn’t grounded in reality and was what she brushed off as a “vibecession.”
Freeland made the comments on Monday when discussing the Liberals’ GST cut and the $250 cheque her government would send to Canadians who made $150,000 or less in 2023. Small Businesses Minister Rechie Valdez and Public Services Minister Jean-Yves Duclos joined Freeland.
“A lot of economists have been talking about the vibecession and the fact that Canadians just aren’t feeling good and that that is having real economic consequences,” said Freeland. “And the Canadian economists making that point are right, that there is a disconnect between the really positive economic news and the fact that the Canadian economy does appear set for a soft landing. That’s good news. But Canadians aren’t feeling it.”
Duclos said that the GST tax break could mean a 5% boost in sales and $1 billion in additional revenue for restaurants and small businesses.
The Liberals’ proposed GST and HST tax cut on groceries, alcohol, children’s essentials, and more is proposed between Dec. 14, 2024 and Feb. 15, 2025.
Federal Director of the Canadian Taxpayers Federation Franco Terrazzano told True North that the comments prove that the Liberals aren’t serious about making life affordable for Canadians.
“Canadians are not struggling because of bad vibes; we are struggling because of bad policies from a government that takes too much money from us,” said Terrazzano.
On Aug. 30, 2024, Prime Minister Justin Trudeau officially doubled Canada’s debt, spending more money during his tenure than every other Prime Minister before him combined.
Freeland also celebrated that the Canada carbon rebate for small businesses would be paid this year. She said the payments would be coming “ahead of schedule.”
The Canadian Federation of Independent Businesses previously applauded the federal government for finally issuing the revenues after waiting five years.
The Liberals initially planned to tax the rebate but backtracked after severe backlash.
Freeland said that the cheques are necessary because demand is weak.
“If Freeland is worried about low demand, then she should stop taking so much money from Canadians in the first place,” said Terrazzano. “The government should scrap the carbon tax, reverse the capital gains tax hike, stop hiking payroll and alcohol taxes, and cut its bloated budget so it can provide meaningful tax relief.”
Canadians relying on food banks have increased by 90% over the past five years. Toronto saw a 273% increase compared to pre-pandemic levels.
A recent PBO report highlighted that Canadians pay more in carbon tax than they receive in rebates, regardless of what province they live in.
The CFIB estimates that small businesses pay approximately 40% of the carbon tax and receive 5% in rebates. The carbon tax costs $65 per tonne of CO2e in 2023 and is set to increase to $170 per tonne by 2030, an increase of 161.5%.
On top of the Liberals’ continuously rising carbon tax, Environment Minister Steven Guilbeault recently proposed a new global carbon tax on maritime shipping.
Conservative Leader Pierre Poilievre joined in on mocking Freeland’s comments.
“Hungry? Can’t afford a home? You just need to get with the vibe!” he said.
