Largest tax cuts in Quebec’s history announced in latest budget
Posted March 21, 2023 9:10 pm.
Last Updated March 22, 2023 12:42 pm.
Quebec’s 2023-24 budget has been unveiled, and it includes one of the largest income tax cuts in the province’s history. Some Quebecers have been left with positive reactions, while others are cautiously optimistic about what this means.
“Every budget you take some you lose some,” said Renaud Brossard, Montreal Economic Institute. “But honestly the fact that we finally have some tax cuts for conductors is very good news.
“Overall, it is a good budget. Quebecers are asking for help. The government is delivering true tax cuts. So there is a lot of positive.”
The cuts were one of the promises made by the CAQ Government in the fall.
While it’s a great step in the right direction, a nurse CityNews spoke with says the cuts do not benefit all Quebecers.
“It seems like they’re just helping a certain income earners rather than all of Quebecers. You know, like you see people who are making above $100,000 will be having better breaks than people who are making less than $40,000 a year. And that’s a problem,” said Naveed Hussain, teacher and nurse at MUHC.
The increase in income tax cuts will be paid for by the government making smaller payments toward the Generations Fund, a debt payment fund. Meaning deficits in the province would continue to increase.
“We are still spending more than what we’re bringing in, and that will not change for next five years. So at a time when interest rates are rising, we’re borrowing money costs us costs a lot more than it used to. Quebec should have been looking to reduce the deficit, get back to balance as fast as possible,” explained Brossard.
However, Hussain says the budget does not look at long-term consequences.
“Because of this budget, instead of paying the debt off in ten years, we’ll be paying it off in 15 years. And that will hurt future generations of Quebecers,” he explained.
“It seems like we’re focused on short-term goals rather than long-term goals. We’re trying to, like, put Band-Aids on … health services or social services and education rather than looking at the future.”
The budget includes an increase of nearly $5.6 billion in healthcare – of which only $565 million will go to social services and mental health over the next five years. Something Hussain says should be more prioritized.
“I can give you examples of where patients who have mental health crises are unable to get beds in institutions and are just sent back into the community where they’re not getting treatment and they end up committing crime or they end up harming family and friends. These are things we really have to look at the ground level.”
