Quebec budget | A welcome but unfair $500

” It’s not fair ! Very young, children see the inequities. Which eventually entitles them to a short lesson on the difference between equality and equity. Now these concepts are likely to be invited to your next dinner with friends thanks to the flagship measure of the Girard budget: a $500 gift to almost all Quebecers. 94% of adults, to be precise.

As might be expected, the government is giving a second boost to households who are seeing the cost of living jump quite faster than their income. But this time, the sum will not be paid only to the less fortunate.

All adults with a net income of $100,000 or less will be entitled to $500 tax-free. It doesn’t matter if they live alone or not. The payment will be made automatically once the income tax return has been processed by Revenu Québec. That’s a good reason not to drag your feet, even when you’re a student or a senior who doesn’t pay a penny of tax.

In all, 6.4 million taxpayers will receive this financial assistance. This includes both the taxpayer in a couple who earns $109,900 a year and who has paid $10,000 into his RRSP (the RRSP reduces income by the same amount) as his neighbor across the street, a single person whose income is barely $40,000.

Even those with net incomes between $100,000 and $104,999 will be entitled to their share of the pie.

It is quite surprising that the amount of this one-off payment was not modulated according to income. The 3.3 billion provided for this measure could have been distributed in such a way as to favor the most vulnerable, those for whom the price of beef (+17%), milk (+6%) and gasoline (+32% ) has become an unprecedented puzzle. Just a matter of fairness.

Believing that everyone is equally affected by inflation is “not true at all”, was indignant, moreover, the co-head of Québec solidaire, Manon Massé.

“With their check, some will buy high-performance New Balance. And there are others who will perhaps manage to buy shoes on a discount for their child after paying for groceries, ”launched the elected official in reference to Minister Girard’s new shoes.

If the 1.3 million people earning more than $75,000 a year had been excluded from the program, for example, it would have meant an extra $650 million to pay out to those who are disproportionately hit by inflation.

In January, only the 3.3 million taxpayers receiving the solidarity tax credit were entitled to the “exceptional benefit for the cost of living” of $275 (people living alone) or $400 (couples). . And no one had cried foul. This time, the couples will receive $1000.

Finance Minister Eric Girard obviously had to draw a line. He denied having put it too high in this election year.

“You place a lot of importance on the $100,000 [de revenus], I attach great importance to the $25,000 in consumption, he said at a press conference. It’s important to realize that inflation affects everyone. It is not true that a family of four with an income approaching $100,000 is not affected by inflation. »

Eric Girard was thus referring to the way in which he had established the amount of $500. This year, the price of the basic consumption basket should reach $22,496, compared to $21,497 in 2021. The tax system (which includes the family allowance, in particular) is indexed by 2.64%, while the inflation should instead touch 4.65%. The difference of 2.01 points represents an additional cost of $432 for food, transportation and accommodation. “In the fund, we rounded up,” said Éric Girard.

It would be surprising if the wealthiest complained in radio call-in shows that they received money that they did not really need to meet their basic needs. Everyone smiles when they find $20 on the floor! On the other hand, the reaction of the low-income earners and the groups that defend them is likely to make more noise.

But in the end, seven months before the elections, the Coalition avenir Québec should above all score points with this simple and quick measure against inflation, the scourge of the hour.