Despite severe economic uncertainty beyond 2023 – a recession had to be created, first – Finance Minister Eric Girard confirms that people aged 70 and over will get up to 2000 in the spring. $ to counter inflation.
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As promised during the election campaign, the economic update released Thursday provides for an increase in the refundable tax credit for Seniors Assistance from $411 to $2,000.
More than 1.1 million seniors will receive this amount when they file their 2022 tax returns. The cost of the move is estimated at $8 billion over five years.
The government gives with one hand and takes back with the other, at least in part: tax revenue for seniors’ activities falls in the way. This tax measure, which has been in effect since 2014, has been able to offset 20% of registration fees for certain activities. This costs the government 2 million dollars a year.
“This is a small credit compared to the progress we are announcing today,” Minister Girard told a press conference.
Among the new elements, Quebec will follow in Ottawa’s footsteps by introducing a tax on vaping products, which will bring in $40 million a year into state coffers.
“This is a public health measure aimed above all at protecting our youth,” said Mr. Girard said, calling vaping “bitter.”
Log indexing
Minister Girard, who warned that no new checks will be sent to taxpayers in 2023, also announces that social assistance programs and the parameters of the personal income tax system will be indexed to 6.44% from the New Year.
For a family with two young children earning no more than $100,000, this represents a $500 increase in the family allowance.
The benefit to all taxpayers associated with this registration code is estimated at $2.3 billion annually, including nearly $2.2 billion for the personal income tax system and more than $161 million for social assistance benefits.
This increase is more than double that used in 2022 (2.64%). This is the strongest index since 2002.
Alternate view
In the event of a recession, Minister Girard still leaves open the possibility of providing “direct assistance to support households or sectors of economic activity most affected by the economic downturn”.
If the Legault government were to return to the “alternative scenario” provided in the economic stimulus package, government revenue would be cut by $4.5 billion over five years.
The budget deficit will also be high, at $5 billion. A provision for economic risks of $8 billion was included in the economic upgrade as set out in the financial framework provided by the CAQ during the election campaign.
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