Canadians aren’t falling for Justin Trudeau’s so-called “tax holiday.”
The intended outcome of Prime Minister Justin Trudeau’s GST holiday and $250 cheque may be backfiring, with Canadians noting the temporary tax break won’t help them or simply seeing it as a political manoeuvre that will do little more than add to the federal deficit.
An online survey by the Angus Reid Institute conducted between Nov. 29 and Dec. 5 among 4,004 Canadian adults highlighted a negative impression of the tax measures.
The Liberals announced a two-month pause on GST and HST on groceries, alcohol, children’s essentials, toys, board and video games, books, and more from Dec. 14 to Feb. 15.
The federal government also announced a $250 one-time cheque to those who earned up to $150,000 in net income, expected to roll out in Apr. 2025. Combined, the two policies will cost more than $6.2 billion, not including the provincial portion of the HST cut.
The majority of small businesses oppose the tax holiday due to the administrative complications it’s likely to invite.
Over a quarter of poll respondents, 26%, said they were not eligible for the $250 cheque. 38% said it would have no impact on their household, while 31% said it would help a little. Only 5% of Canadians said it would help a lot.
To be eligible for the cheque, Canadians must have worked in 2023 and earned an income of less than $150,000.
The Canada Revenue Agency will automatically deliver the $250 in early spring 2025.
Even fewer Canadians said that the GST/HST exemption would have a positive impact on their household finances.
Over half, 55%, said the GST/HST exemption would not help them or their household. Just over a third, 38%, said it would help a little, while 7% said it would help a lot.
Ontario announced a provincial sales tax break to coincide with the federal measure. Ontario’s temporary tax cut and $200 handouts to provincial residents will cost taxpayers $3 billion.
When looking at specific income groups, the lowest income Canadians who make less than $25,000 a year were the most likely to say they’d be ineligible for the $250 cheque, at 38%.
The majority of Canadians considered the GST/HST tax exemption and one-time cheque a political gambit.
The same amount that said it would have no impact, 55%, said the policies were “entirely political.” Almost three in ten, 29%, said they were “mostly political.” Only 1% said it was “entirely genuine help,” while 6% said it was “mostly genuine help.”
Canadians who intend to vote Conservative were the most likely to say it was “entirely political,” at 82%.
Liberal voters were the only party supporters with more than 1% of people who thought it was “entirely genuine help,” but even only 2% of them felt that way.
“With an election coming sooner than later, most Canadians (55%) see the GST holiday and rebate cheque as a purely political move. Likely Liberal voters are the most likely to believe the policies are ‘genuine help’ at one-in-five, but a majority among that group say the tax relief is mostly about politics,” reads the poll.
The Liberals have been faltering in the polls, but the GST/HST tax exemption and $250 cheque may hurt their cause even further.
Less than 2% of respondents (excluding those who intend to vote Liberal already) said that the policies would make it “much more likely” that they would vote for the Liberals in a future election. Following this, 3% said it was “more likely.” The majority of Canadians, 55%, said this would make no difference.
However, 8% said these policies would make it “less likely” for them to vote for the Liberals in the future. Over a quarter of Canadians, 28%, said the policies would make it “much less likely” that they would vote Liberal in the future.
Canada’s debt officially doubled under Prime Minister Justin Trudeau on Aug. 30, 2024. On that day, he officially spent more during his tenure than every other prime minister before him combined.
