Those looking for a few billion more to improve the offer to state employees quickly arrived at the easy solution. The government no longer has these billions available in its coffers because it gave them back to taxpayers. Scandal!
Two decisions of the Legault government have been singled out. Checks sent to Quebecers to compensate for inflation and the tax cut announced in last spring’s budget.
First the two payments for inflation. Let’s get one thing straight: the government didn’t give you a gift: it returned your money. It was necessary to carefully watch the revenue coming into the state coffers during the months when inflation peaked. In Ottawa as in Quebec, the governments had some nice surprises.
- Listen to the Dutrizac – Dumont meeting broadcast live every day at 7:05 a.m. via QUB radio :
The money was coming in
No wonder: sales taxes are applied to the amount of the sale. IF prices increase by 6, 7 or 8% like in 2022, guess what happens to sales tax revenue. As this inflation hit households hard, the Quebec government decided to return this money to them. It’s as simple as that.
And most public sector employees received this money, since the vast majority earn less than the $100,000 limit set. Should this money have been kept in its entirety to be given entirely to state employees in the negotiation? I don’t see why not, since inflation affected everyone.
As for tax cuts, the government has not taken a radical step, but it is still significant. He reduced the tax rate on the first two income brackets by one percent. Enough to see a difference in his pay. For income above $98,500, the tax rate remained the same.
Photo Agence QMI, JOEL LEMAY
The most taxed
My colleague Michel Girard recalled in his pages at the end of the week that Quebecers suffer by far the highest tax burden in Canada. (He could also have said in North America.) Giving the middle class some relief is completely welcome and logical in a time when the cost of living is particularly painful.
As for public sector employees, they too benefited from this tax cut. Like the rest of the population, they have seen their purchasing power improve somewhat. Union spokespeople cannot today speak of tax cuts as an illegitimate gift given to a select group. Their members benefited.
So, yes, in this negotiation, we must improve the working conditions of public sector employees. We can do this with the room for maneuver provided, we can also include efficiency gains in the negotiation.
But no, we don’t have to feel guilty about tax cuts, as if a lunch was snatched from someone’s mouth.
