A chart that says it all | Purchasing power: you have more money in your pockets




Do you feel like you have less money in your pockets in recent years? For the vast majority of Quebecers, this is probably just an impression. The Chair in Taxation and Public Finance at the University of Sherbrooke calculated the variation in real purchasing power (after taxes and government benefits) for 24 types of Quebec households, depending on the type of household (single or couple, with or without children) and income level. Conclusion ? True, purchasing power has declined for the vast majority of Quebecers (20 types of households out of 24) in 2023. But over the past five years, it has increased for 20 of the 24 types of households, has remained stable in one case and declined for three types of households. Downside: we do not take into account the effects of the housing crisis, which means that housing costs more. That said, when we compare with the G7 countries, Quebec and Canada do very well in terms of maintaining purchasing power between 2019 and 2022. In six different scenarios (types of households, income), Quebec arrives still ahead of all the G7 countries. Despite inflation, the vast majority of Quebecers have therefore improved their purchasing power since 2019, among other things because of the Legault government’s tax cuts. Was it a good idea to grant tax cuts – and deprive ourselves of tax revenue – when our public services are in difficulty? That’s another debate…


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