Inflation: 5 things about Canada’s affordability plan
OTTAWA – The Liberals pushed for Congressional elections on Tuesday by passing two new bills with more than $4.5 billion in spending that they hope will ease the rising cost of living for many. with low-income Canadians.
Here are five things to know about the government’s new affordability plan:
1. LIBERALS HOPE FOR DOUBLE GST . CREDIT
Some 11 million people already qualify for GST credits that would double in about six months under the proposed bill. If it passes, singles without children will receive an additional $234 and couples with two children will receive an additional $467 this year. The government estimates seniors will receive an extra $225, on average.
2. SOME CHILDREN ELIGIBLE FOR DENTAL CARE DOLL
Children under 12 whose families have an annual income of less than $90,000 are eligible for the new dental care benefit if they don’t already have dental insurance. The federal government says qualifying families will receive up to $650 per child per year, depending on their income.
While the Canada Revenue Agency will ask for details of dental appointments and expect parents to keep receipts to show how the money was spent, the government has said it will not phone calls. if families don’t spend every penny as intended.
However, if the CRA finds people have intentionally deceived them or misused the funds, they could face fines of up to $5,000.
The subsidy is only a temporary measure while the federal government implements a more comprehensive and long-term dental care program.
3. A Little Help Is Coming For Renters RENTASE ON THEIR PAYMENTS
One of the proposed bills would also create a $500 one-time deposit for the Canada Housing Benefit. Checks will be available to families earning less than $35,000, or singles earning less than $20,000, who also spend at least 30% of their income on rent.
The idea is to make rent more affordable for low-income renters who are already struggling with the cost of living.
4. THE PAYMENT TERM WILL DEPEND ON HOW FAST INVOICE LAW
The bills contain about $4.5 billion in spending, $3.1 billion of which has not yet been included in the 2022 budget.
Government ministers are keen to get it through the House of Commons quickly so checks can be delivered before December – a particularly difficult month for many families short of money.
They can be certain the bills will get through with the help of the NDP, who have called for all three measures, but the speed at which it plays out in the end could depend on the opposition Conservatives, who put forward problem with the Liberal Party’s approach to affordability.
5. POLICIES THAT ARE EXPORTING MORE WHEN DETAILS WILL DO GOOD INFLATION
Newly-concluded Conservative Party leader Pierre Poilievre has taken a stand against the Liberals, accusing their scheme of “printing more cash, borrowing more money and fueling the inflationary flames the prime minister has created” .”
In a press conference, Finance Minister Randy Boissonnault countered by saying the spending “is not an inflationary move” because it would be for people who are struggling and have no savings. to participate.
This new spending represents only a small fraction of the overall Canadian economy, at about $2.6 trillion, he said. “So this is like throwing a stone into a lake – the lake doesn’t flood. And that’s what we’re doing very carefully.”
This report by the Canadian Press was first published on September 20, 2022.