An announcement that smacks of the electoral campaign. With more than ten points behind his main rival (Conservative leader Pierre Poilievre) in the polls, Liberal Prime Minister Justin Trudeau must regain the support of the younger voters who propelled him to power in 2015 in order to win the election expected in a little over a year.
The Canadian government thus unveiled on Tuesday new taxes on the richest to finance housing in particular and attract young people hit by the increasing cost of living, by presenting its federal budget. Justin Trudeau forecasts more than 20 billion Canadian dollars in revenue over five years, mainly thanks to this new tax system. It is also counting on a slowdown in its economy in 2024 but believes it can avoid recession, despite relatively high interest rates which are weighing on the economy.
Which sectors will be affected?
Most of the new spending is aimed at the education, housing and jobs sectors, all pressure points for young voters. “Today, a carpenter or a nurse can pay taxes at a marginally higher percentage than a multi-millionaire. It is not fair. This must change, and it will change,” Budget Minister Chrystia Freeland said Tuesday. The latter promised “fairness for every generation”.
“For too many young Canadians, especially Millennials and Generation Z, it feels like their hard work isn’t paying off,” she said. “They do not benefit from the same conditions as their parents and grandparents,” she added.
New housing by the millions
With the rising cost of living being a major concern for most Canadians, the budget presents a series of new expenses to also reduce household bills. The government has also committed, in the context of a housing crisis, to building 3.87 million additional homes by 2031 “at a pace and on a scale not seen since the post-Second World War”, he said. declared Chrystia Freeland in Parliament. To achieve this goal, Ottawa will open public land for housing, convert federal offices into apartments, and tax vacant properties.