At face value, eliminating taxes on goods is a positive thing for most people; Is it though?

BY ADRIAN REECE

Justin Trudeau is instituting a new tax break to end off 2024. He is temporarily eliminating GST/HST on certain goods. At face value, this sounds like a boom to the economy and the cost of living that many Canadians are struggling under and have been for the past four years. Some politicians particularly Pierre Poilievre who disagrees with this tax break, which is met with disdain from the citizenry, especially since his political position is to “axe the tax.”

At face value, eliminating taxes on goods is a positive thing for most people. However, long-term effects need to be taken into consideration. The issue here lies in the production of goods. Eliminating taxes, but not producing more goods will ultimately drive up the cost of goods down the line. Causing an even bigger problem.

Taxes should be used to create a surplus of what we need. We must purchase more bread, vegetables, and foods to live healthier and more satisfying lives. However, this tax “break” isn’t looking to produce more goods, but instead make goods scarcer, driving up the cost of what’s left, making it considerably more difficult for Canadians to afford to eat and live. The dollar can only stretch so far, and it has been slowly running out of purchasing power over the last few years.

We are one year away from the next federal election, and previously our prime minister hasn’t instituted anything that would necessarily help citizens. This, like everything else at face value, appears to help Canadians significantly get on their feet; however, when examining the long-term effects of what is being put into place, the results are more daunting than they first appear.

By driving up the cost of food again we will shortly begin to see another setback Canadians must navigate. There have been too many things instituted by the Trudeau government that have negatively impacted Canadians.

In preparation for the tax break beginning December 14^th, 2024, and ending February 15^th, 2025, grocery stores have begun to raise their prices. This is a tactic to recover potential lost profits that they are predicting they will lose in the tax break. With the raising of prices, it also looks like a more embedded tax structure, where taxes are mixed in with the price. This is a structure that some countries in the East use, which psychologically makes their citizens feel much better about their purchasing power.

Poilievre has publicly stated how this initiative hurts Canadians, and he wants us to focus on creating and producing more in order to really bring taxes down. Loosely considering his position, he wants to create more homes produce more goods and have more stock for Canadians to purchase. With more goods comes lower prices, with more homes comes lower housing prices, with more stock comes more ability for your dollar to make an impact and fill up your home with what you need.

Things at face value are not always what they appear to be. While this appears to be helpful, long term Canadians should prepare for another raise in their grocery bills, so they will be getting less for more with the same wages they have been earning.

It is time for a new government. Canadians are suffering under the current administration and it is time for a change. We are less than a year away from our opportunity to make that change.