Even as the Liberals’ “tax holiday” bill moves closer to becoming law, the deputy prime minister on Friday lamented what appears to be a lack of support for the proposed $250 rebate cheques that were originally part of the federal government’s plan.
The $250 cheques for Canadians who worked and earned up to $150,000 in the past year were proposed last week alongside the two-month holiday on GST and HST on certain items as a way to ease affordability concerns. The Liberals’ plan is for the tax break to take place from Dec. 14 to Feb. 15 and the rebate to roll out in spring 2025.
But on Wednesday, the cheques were missing from a stand-alone bill the government put forward for the tax break, with the government citing a lack of support for the measure.
“We are in a minority in Parliament, and so we put forward a measure and we sought the support of opposition parties for this really positive measure,” Freeland told reporters on Friday. “Unfortunately, we weren’t able to get that support.”
While the proposal initially looked like it would have support from the NDP, Leader Jagmeet Singh on late Tuesday said his party would not support the rebates unless the cheques are expanded to more Canadians.
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He said he initially thought the cheques would go to any Canadian who earned under the net income cap.
Under the original proposal, Canadians who had worked in 2023 and earned less than $150,000 in net income would be eligible for the cheques. Singh says he wants to see the rebate include seniors who weren’t working, students who weren’t working, people on disability who weren’t working and others unable to work last year.
A spokesperson for Freeland told Global News last week that in addition to the cap on income, Canadians who received employment insurance (EI) benefits, paid EI premiums or made CPP contributions would qualify for the rebate and that the government has supported seniors such as through increases to Old Age Security.
Freeland did not say if the cheques will be expanded, noting the government will work with different parties to support working Canadians.
Prime Minister Justin Trudeau earlier on Friday criticized the NDP for not supporting the cheques.
“To see the NDP, which was supposedly the party of workers, turn its back on hardworking Canadians and say, no, we shouldn’t be delivering this cheque unless we expand it massively, is not recognizing working Canadians for the challenges they’re facing,” Trudeau said.
He went on to also criticize Conservative Leader Pierre Poilievre for not supporting the cheques, as well as the tax break which the NDP did vote for Thursday night which allowed it to be sent to the Senate.
Following the adoption of that bill in the House of Commons, Poilievre said in a post on X that Canadians “don’t need a temporary two-month tax trick.”
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