SoVote

Bill C-46

44th Parl. 1st Sess.

May 11, 2023

This bill is called the Cost of Living Relief Act, No. 3. It makes changes to two existing laws - the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act. The first change is to the Federal-Provincial Fiscal Arrangements Act, which allows the government to give more money to the provinces and territories. Specifically, it authorizes additional cash payments to Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta, Newfoundland and Labrador, Yukon, Northwest Territories, and Nunavut. These payments amount to a total of $2 billion. The second change is to the Income Tax Act, which provides an additional payment of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit. This extra payment will be double the amount of the regular January 2023 payment. These changes aim to provide relief to individuals and provinces during a difficult economic period.

One steelman argument in favor of this Act is that it provides much-needed financial relief to individuals and provinces during a time of economic uncertainty. The additional payments to provinces and territories can help alleviate budgetary pressures and support the delivery of essential services to citizens. By providing double the amount of the regular January GST/HST credit payment, the Act aims to directly benefit low-income individuals and families who may be struggling to make ends meet. This targeted relief can help stimulate spending and support local businesses, contributing to economic recovery. Additionally, the Act introduces provisions for shared-custody parents, recognizing and addressing the unique financial challenges they may face. Overall, this legislation demonstrates a commitment to supporting Canadians through difficult times and promoting economic stability and well-being.

One possible steelman argument opposing this act is that it could lead to a significant increase in government spending and contribute to a larger budget deficit. By authorizing additional payments to the provinces and territories and doubling the amount of the regular GST/HST credit, the government would be allocating a substantial amount of public revenue. This could potentially strain the government's finances and limit its ability to fund other important programs and services. Moreover, an increase in government spending without a corresponding increase in revenue could result in higher taxes or borrowing, both of which could have negative consequences for the economy and individuals. It is important to carefully consider the long-term fiscal implications of such amendments to ensure the sustainability of government finances.