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
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
"It's a bit of a complicated pattern; we've got a lot going on," said Jennifer Smith of the Meteorological Service of Canada in an interview with CTVNews.ca on Wednesday. "[As is] typical with weather, all of these things are related."
Police tangle with students in Texas and California as wave of campus protest against Gaza war grows
Police tangled with student demonstrators in Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.