Cory Morgan;

While the Liberal government likes to talk the talk when it comes to responsible spending, it just can’t bring itself to walk the walk at budget time. Just last fall the budget deficit was projected to be $30.6 billion. That budgetary deficit has expanded to $40.1 billion. Projected government revenues dropped by $5.7 billion due to a slowing economy, but that alone doesn’t account for the expanded deficit. Spending increases do.

Tax hikes are cooked into the budget, including an increase to the “alternative minimum tax” which targets those deemed to be wealthy. Stock buybacks will be taxed, and dividends from financial institutions are to be taxed more. The funds raised by such taxes won’t put much of a dent in the deficit, and these kinds of targeted taxes usually don’t raise as much as projected due to their chilling effect on private-sector investments. They resonate well among NDP supporters, however, and the hikes were likely baked into the budget to ensure Singh’s continued support for the government.[…]

The prime theme of the budget is providing relief for Canadians from inflation. A one-time increase in GST rebates for low-income Canadians is part of the budget. Aside from that, however, most citizens won’t be seeing any more money in their pockets from this budget. With spending increasing by $18 billion over 2022’s budget, the government will likely be contributing to further inflation. The continuing increase in the carbon tax will contribute to cost of living increases as well.