Singh commits to tax-free necessities and bills – not a break for billionaires

TORONTO — Despite threats of a trade war that will drive prices even higher, the Liberals are set to reinstate sales tax on Saturday. NDP leader Jagmeet Singh says his government will permanently eliminate the tax on daily essentials and monthly bills, including home heating, cell phone and internet charges, diapers, children’s car seats, kids’ clothes and grocery store meals.

That’s in stark contrast to promises by Liberal candidates Chrystia Freeland and Mark Carney, who will cut taxes for billionaires following bitter complaining by Pierre Poilievre, the Conservatives, and Canada’s billionaires about the capital gains tax increase.

“The Liberal government is letting people down by hiking the sales tax backup when families are bracing for job losses and higher prices caused by Donald Trump’s trade war,” said Singh. “Life’s essentials shouldn’t be taxed, period. But hiking taxes on diapers and using that money to help fund a billionaire tax-cut is despicable. I expected Pierre Poilievre to stand with billionaires – but Liberal leadership candidates taking their side is a brutal let-down.”

The GST and HST holiday ends February 15. But while Liberal leadership candidate Carney says giving regular Canadians a break on sales tax is a “bad idea”, he’s quietly vowed to cut taxes for the very wealthiest Canadians. As a result, the Liberal government is pausing implementation for the higher inclusion rate for capital gains, even though just a few months ago they claimed that this move was essential for “generational fairness” and necessary to fund home-building supports.

Singh’s Tax-Free Essentials plan will cost $5 billion each year, and benefit everyone who shops at a grocery store or pays a bill. The Carney and Freeland plan to cut the billionaire tax will cost $19.4 billion over five years and will benefit 0.13 per cent of Canadians – benefitting people earning an average of $1.4 million every year.

“We’re sick and tired of governments forcing more and more costs on everyday people while billionaires and massive corporations just keep getting richer,” said Singh. “Pierre Poilievre and Mark Carney stand with the billionaires. I’m in it for you.”

BACKGROUND

• An NDP government will immediately lower daily and monthly costs for people by removing the GST from:
  • Grocery store items including pre-prepared meals
  • Diapers
  • Children’s car seats
  • All clothing for children under 15
  • All telecom internet, phone and cell phone charges
  • All types of home heating
• New Democrats will pay for its Tax-Free Essentials commitment with an excess profit tax on large corporations that gouge Canadians.
  • The Parliamentary Budget Officer estimated in the NDP’s previous platform that this one-time tax would bring in $14 billion in additional annual revenue. The NDP will announce a similar excess profit tax in its 2025 platform.
  • An excess profit tax would only apply to very large corporations—like Rogers, Shell or Loblaws—and only if they’ve hiked their profit margins.