Consumers expected to pay the price for election promises
The Liberal party now has a minority government and will likely act fast to try to deliver on some of its election promises. The party's election platform packed with promises will cost about $78 billion over the next five years.
According to the prime minister, the big ones are health, housing, child care and efforts to combat climate change.
If you have taken the time to read the long listed document, you may have come away wondering how the government plans to pay for all those initiatives because there is a lot to chew on.
"It's almost as if that they think that we've gone to a buffet restaurant and they can invite everybody in and we can all eat as much as we want and the service staff will never bring us the bill," said Kris Sims, B.C. director of the Canadian Taxpayers Federation.
Prime Minister Justin Trudeau's Liberals plan to go after the rich and tax the banks.
"Where do you think the banks are going to get that money from?" asked Sims.
Her point is valid. Often times when companies have to pay more, they find a way to balance out the books, either by increasing fees and surcharges on consumers or by laying off staff.
Liberal promises to tackle the myriad issues facing Canada will require support from the NDP, which could lead to even higher spending. The NDP's planned vision for the country was estimated to cost about $214 billion, so you can bet that they are going to want some of their programs implemented as well before agreeing to support the Liberal initiatives.
"When we deficit spend like we are, it's the Bank of Canada that's often buying up those deficit dollars and guess what? The Bank of Canada then produces more money," said Sims.
Consumers are already paying the price on groceries and other items. Deficit spending can lead to increased inflation, which is already up four per cent over last year. Inflation caused by deficit spending is essentially a hidden tax. The government's proposed debt-to-GDP ratio is predicted to hover around 50 per cent over the next five years.
The forecast also relies on finding new sources of revenue. There are plans to spend money to beef up the Canada Revenue Agency's budget to go after tax cheats and close tax loopholes. The Liberals estimate this will recover about $1 billion in additional tax revenue but it is a gamble because it may not happen.
Data from the CRA shows recent efforts to combat tax evasion by the super-rich have not resulted in any prosecutions or convictions. The government plans to put the new effort into tax avoidance this time around. We will see if it works.
The Canadian Taxpayers Federation is skeptical.
"I first heard that, I think back when Ed Broadbent was leader of the NDP. So if the feds can do it this time around all the power to them," Sims added.
Bottom line, to fulfill its promises the money has to come from somewhere.
"The bill will come due and so this is where we're asking the adults in the responsible adults in the room to say, 'Whoa, whoa,'" she said.
CTVNews.ca Top Stories
Harvey Weinstein's 2020 rape conviction overturned by N.Y. appeals court
New York's highest court on Thursday overturned Harvey Weinstein's 2020 rape conviction, reversing a landmark ruling of the #MeToo era in determining the trial judge improperly allowed women to testify about allegations against the ex-movie mogul that weren't part of the case.
BREAKING Honda to get up to $5B in govt help for EV battery, assembly plants
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment that is banned at Queen’s Park.
CTE: Researchers believe widespread brain injury may contribute to veteran suicide rate
Researchers are working to better understand if some Canadian military veterans may be suffering from Chronic Traumatic Encephalopathy, also known as CTE -- a disorder previously found in the brains of professional football and hockey players after their death.
1 arrested in northern Alberta during public shelter order
Residents of John D'Or Prairie, a community on the Little Red River Cree Nation in northern Alberta, were told to take shelter Thursday morning during a police operation.
Secret $70M Lotto Max winners break their silence
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
New deep-water channel allows first ship to pass Key bridge wreckage in Baltimore
The first cargo ship passed through a newly opened deep-water channel in Baltimore on Thursday after being stuck in the harbor since the Francis Scott Key Bridge collapsed four weeks ago, halting most maritime traffic through the city's port.
First in Canada procedure performed at London, Ont. hospital
A London man has become the first person in Canada to receive a robotic assisted surgery on his spine. Dave Myeh suffered from debilitating, chronic back pain that led to sciatica in his right now and extreme pain in his lower back.