Backgrounder: Justin Trudeau will be forced to raise taxes or cut education spending
September 16, 2019
Justin Trudeau’s endless deficits and out of control spending will force him to raise taxes even higher or to cut education funding.
- During his four years in power, Justin Trudeau added $72.7 billion to the national debt.[i]
- Justin Trudeau promised that the budget would be balanced this year. Instead, the deficit will hit $20.7 billion.[i] According to Finance, the budget will not return to balance until 2040, by then racking up an additional $271 billion of debt[iii].
- The cost of interest on debt will hit $30 billion by 2021-2022 .[iv]
- This is more than double the federal government’s transfer to the provinces for post-secondary education, social assistance and social services, and early childhood learning. (Canada Social Transfer amounted to $14.2 billion last year 2018-19)
- Canadians remember what happened in the 1990s when ballooning debt and deficits forced the Liberals to make painful cuts to health care and education spending.
- Justin Trudeau said Paul Martin made the right decision when he slashed transfers to the provinces to balance the books. He said these “were the right decisions.” https://www.macleans.ca/news/canada/justin-trudeau-weighs-in-on-paul-martins-decision-to-slash-provincial-transfers/
Justin Trudeau has made life more expensive for students and young people. He cancelled:
- The Education Tax Credit – Students could claim up to $400 per month of study for full-time students and $120 per month of study for part-time students as a non-refundable tax credit. This put up to $720 per year in the pockets of a Canadian Student. Justin Trudeau cancelled it in Budget 2016.
- The Textbook Tax Credit – Students could claim for textbooks up to $65 per month of study for full-time students and $20 per month for part-time students. This put up to $110 per year in the pockets of a Canadian student. Justin Trudeau cancelled it in Budget 2016.
- The Public Transit Tax Credit – Many students rely on public transit and could save up to $220 per year (estimated based on the cost of a TTC student pass which costs $121.45 per month). Justin Trudeau cancelled it in Budget 2017.
- The Children’s Arts Tax credit – Allowed parents to claim up to $500 for participation in artistic, cultural, recreational and developmental, which enabled them to receive up to $75
- The Children’s Fitness Tax – Allowed parents to claim up to $1,000 for participation in sporting or fitness activities, which enabled them to receive up to $150.
[i] Parliamentary Budget Officer. https://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/2019/EPC_Baseline/EPC_Baseline_EN.pdf
[ii] Parliamentary Budget Officer. https://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/2019/EPC_Baseline/EPC_Baseline_EN.pdf
[iii] Finance Canada. https://www.fin.gc.ca/pub/ltefp-peblt/2018/report-rapport-eng.asp
Parliamentary Budget Office. https://www.pbo-dpb.gc.ca/en/blog/news/election-proposal-costing-baseline