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Trudeau’s poisoned gift

This time, it’s because of Justin Trudeau’s GST holiday on certain items like beer or video games.

Already, I find it indecent that a government extends its lifespan by offering a Christmas present to voters… on the arm of taxpayers.

Let me no longer hear Trudeau’s Liberals denouncing the populism of Pierre Poilievre’s Conservatives. They have just demonstrated that they are as good as them in this area!

In addition, we realize today that Trudeau’s tax holiday will put Quebec merchants at a disadvantage compared to those in Ontario. The Outaouais is being restricted because of its border location!

This is because in Doug Ford’s province, federal and provincial taxes on products and services have been harmonized since 2010. Trudeau’s tax holiday will therefore have the effect of completely suspending this harmonized sales tax (HST) of 13 %.

The situation is different in Quebec where the 10% provincial sales tax remains in effect. And everything indicates that it will remain so: given the precarious state of Quebec’s finances, there is little chance that the Legault government will follow Justin Trudeau in its electoral largesse.

And that changes everything. Already, many Quebecers who live in Gatineau or Outaouais do not hesitate to cross the bridges to Ontario to take advantage of a meager difference of 10 cents per liter of gasoline.

You can be sure that many of them will make the same round trip to Ontario to avoid paying 10% QST on chips, clothing or a meal at a restaurant…

Justin Trudeau’s GST holiday seems like a poisoned chalice for many Outaouais merchants and restaurateurs.

Pascale de Montigny-Gauthier, president of the Regroupement des gens d’affaires. (Etienne Ranger/Archives Le Droit)

The president of the Regroupement des gens d’affaires, Pascale de Montigny-Gauthier, deplored the situation in various forums on Monday. As much as its Ontario members applaud Trudeau’s tax holiday, its Quebec members are worried about its consequences on their holiday season sales.

The president of the RGA tempers this by saying that consumers are creatures of habit. And that many Quebecers will continue to buy in Quebec stores despite the more advantageous tax holiday in Ontario.

Nevertheless, in Outaouais, we have the impression of replaying border absurdities in the old film.

Remember the days of COVID when Quebec and Ontario seemed unable to synchronize health restrictions. At one time, Quebec closed restaurants, bars and gyms while everything remained open in Ontario. It was surreal…

The most annoying thing is to see Justin Trudeau spending billions on a short-term tax holiday that will have little long-term impact on the country’s economy, according to several experts interviewed in the media.

Seen from the Outaouais, it is all the more frustrating since the Legault government, caught financially, has just imposed cuts of 90 million dollars to the CISSS de l’Outaouais which lacks the resources to properly care for the people.

I want to avoid falling into populism by saying that the federal billions would have been better invested in health or homelessness. The fact remains that this tax holiday is enough to make observers of the political scene cynical.

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