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Federal budget boosts deficit, ends commuters’ tax credits

March 30, 2017   ·   0 Comments

By Mike Pickford

Despite early suggestions that his federal budget could be one of the most important in recent memory, Liberal Finance Minister Bill Morneau delivered something of a damp squib when presenting the government’s financial plans for the upcoming year – adding to the country’s already hefty debt while ignoring many perceived ‘big ticket’ items.

Many have had their say on the 2017 budget over the past week, with some apparently perplexed by the Liberals’ decision to once again make cuts to military funding, while others were concerned by the government’s lackadaisical approach to creating a clear road back to a balanced budget. In the 2017-18 fiscal year, the federal deficit is expected to grow to $28.5 billion – up from $25.4 billion forecasted just six months ago.

Orangeville Mayor Jeremy Williams described the budget as a “disaster dressed up like a train wreck”, while Dufferin-Caledon MP David Tilson was unsurprisingly critical when discussing the government’s finances with the Citizen.

“Canadians are getting nickel and dimed by this Prime Minister so that he can continue to fund flawed Liberal ideas,” Mr. Tilson said. “The deficit now stands at $28.5 billion when we were promised it would be in the region of $10 billion at this time. The Liberals are trying to buy their way to an election win in 2019 at the expense of our children and grandchildren.”

It’s not all doom and gloom though for Canadian residents, as the budget does include a few gems, the most prominent of which is a commitment to invest $11.2 billion over 11 years in affordable housing. That particular item should interest local residents, as recent reports indicate prices in Orangeville’s housing market have swelled by almost 50 per cent in the last two years.

More funding for child care was promised, with $7 billion to be invested over the next decade, although that particular area of funding isn’t slated to start until 2018-19. Also promised is increased funding in municipal transit systems across the country, while new parents will now have the opportunity to extend their parental leave to 18 months should they wish to do so.

In a move many expected to see, the government also upped its surcharge on booze slightly, with a bottle of wine now slated to cost one cent more than last year and a 24-pack of beer coming in at an additional five cents over last year’s prices.

Perhaps the heaviest hitting decision that will affect local commuters is the impending cancellation of the Public Transit Tax Credit. The credit, which allows transit riders to claim a refund of 15 percent of the money they’ve spent on transit passes in a tax year, will disappear on July 1. Initial estimates indicate the cancellation will mean GO Transit riders and other users of Presto cards will wind up paying another $20 per month, or $240 a year.

“This will have the largest impact on the middle-class, students and those living in urban centres,” says Mr. Tilson. “The government is imposing a heavy carbon tax on the provinces, thus discouraging people from driving their personal vehicles and yet they cancel this tax credit that encouraged people to use public transit.”

Mayor Williams says this could potentially be the most contentious issue for people living in Dufferin County because of the number of residents who have jobs down in Toronto and take public transit to get to work. He was also upset to hear that the budget included $523 million over five years to crack down on tax evasion and ensure greater tax compliance across Canada, while also expressing his disdain for a planned national housing registry.

“I hate to be a cynic with these things, it’s our Canadian government and we should always try to support them, but when you see things like this being rolled out it makes it a challenge,” Mayor Williams said.

Mr. Tilson said the Liberals have manipulated this budget so that they once again come across as the “middle-class family crusader”, but he hopes residents across the country will be able to see the 278-page document for what it really is.

“Much of the money promised in Budget 2017 will not begin to be distributed until 2018 or 2019 – just in time for the next federal election,” Mr. Tilson said. “Canadians deserve solutions to the challenges they face right now, not expensive programs for years down the road.”

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