Political parties offer different perspectives on the country’s economic future during this year’s election campaign
Federal election candidates offer different perspectives on how to help the Canadian economy recover from the ravages of the pandemic.
The Canadian economy unexpectedly contracted 1.1 percent in the second quarter. Although Ontario businesses no longer face lockdowns, the fourth wave of COVID-19 adds to concerns about the future economic recovery.
Each of the parties proposes a vision for the future of the economy. Here is their position, along with local Newmarket-Aurora candidates:
The Liberal Party highlights its record in its platform and said 92% of jobs lost during the pandemic have been recovered. It also highlights the support programs it has implemented to help support the public during the pandemic crisis.
It emphasizes a $ 10 per day child care plan, with agreements already negotiated with some provinces such as Quebec, as a key position for economic recovery.
âIt creates jobs and allows parents to return to work. The business case is there, âsaid Tony Van Bynen, Newmarket-Aurora candidate. âEvery dollar invested in affordable child care generates between a dollar and a half and $ 2 in economic growth.
The Liberals also plan to introduce a new employment insurance benefit for self-employed Canadians. They also plan to provide the tourism sector with wage and rental support of up to 75 percent this winter.
Van Bynen said the country still has to go through the pandemic to recover and supports for workers must remain in place.
When it comes to taxation, the Liberals promise to raise taxes on banks and insurance companies earning more than $ 1 billion a year.
âThey made huge deals during the pandemic,â Van Bynen said of the banks. “It is important that they contribute to recovery in a very meaningful way.”
They would also create a minimum tax rule so that the highest earners cannot avoid paying anything through deductions and credits, put in place a tax on luxury vehicles and tax non-residents, non-Canadians holding vacant land and residential properties.
Van Bynen said the government can cope with the debt levels it is currently experiencing, which will improve as the economy recovers. He said the government needs to strike a balance, but not just on the books.
“By making sure that no one is left behind, and at the same time, we are careful about how we spend our money. So as we move forward, the burden that the next generation will face is manageable,” did he declare.
The Conservative Party plans to help the economy by pushing for vaccination rates. They say they will reach 90% within two months of taking office, thanks to federal funding for paid time off for immunizations and free transportation to the clinic.
The Conservatives are planning four major initiatives to stimulate job creation. These include paying up to 50 percent of salary for new hires for six months following the end of the Canada Emergency Wage Subsidy, a five percent investment tax credit for everything. capital investment made in 2022 and 2023, a 25 percent tax credit for money invested in small businesses up to $ 100,000 and loans up to $ 200,000 for small and medium businesses in the hospitality, retail and tourism, with a discount of up to 25%.
âEvery part of the Conservative platform is forward looking and not every platform is one-size-fits-all to get Canadians across today. Conservatives believe Canadians value choice in every part of their lives, including their jobs, and want to start planning for the future, âsaid Harold Kim, Newmarket-Aurora campaign candidate.
When it comes to taxation, the Conservative platform says it will go further after big business evades the Liberals’ high-end compliance program. The party promises to charge foreign tax companies a digital services tax of 3% of their gross Canadian revenues.
However, Kim’s campaign said low tax rates attract businesses.
âCanada is one of the most taxed jurisdictions in the world, which is often why companies go south and take the profits and talent of their business with them,â the campaign said. âPart of the incentive to attract investment to Canada will be to offer favorable tax rates on products made in Canada. ”
The Conservatives plan to eliminate the deficit within a decade by rebuilding the economy and promise to reduce liability for emergency spending. The platform refers to the search for more efficiency through methods such as shifting more of the federal public service to remote work.
âThe Conservatives believe that with a comprehensive program that addresses all aspects of Canadian life, Canada’s economy will recover and prosper, and the budget will be balanced ten years from now,â the campaign said.
The NDP promises to improve employment insurance by ensuring that no one who depends on or benefits from it receives less than $ 2,000 a month. The party would also expand eligibility to include people leaving work for school, childcare or to protect the health of immunocompromised family members.
The NDP also promises a guaranteed living income for all Canadians, universal child care at $ 10 a day, and the introduction of a federal minimum wage starting at $ 15 and rising to $ 20.
Newmarket-Aurora NDP candidate Yvonne Kelly said their vision for reviving the economy is the same as how they wanted to manage the pre-pandemic economy, and the pandemic has highlighted disparities.
âWhen you invest in people, especially those who are really trying to get by and those who are doing well but might need a little more support, it’s money that goes into the community. It drives growth, âKelly said.
NDP promises new tax measures, including a 15% COVID-19 excess profits tax on large corporations, raising the top marginal tax rate by 2%, and a new wealth tax for multi-millionaires the most rich. It would also increase the corporate tax rate by three percent from 2010 levels and seek to close the loopholes.
âThe problem is having the courage to enforce and strengthen enforcement, to prevent tax evasion and to close those loopholes,â Kelly said. “These are the things that keep us from investing in people across the country.”
The NDP says it would manage the debt and liability for the deficit, switching to balanced books when it is prudent.
âWhen the time is right, we can start to step back a bit,â Kelly said. âYou have to invest. “
The Green Party promises to promote a low-carbon economy, replacing jobs in the fossil fuel sector with jobs in the green sector through salary insurance, training and early retirement plans. It also offers a guaranteed living income and universal childcare services,
âIt would be available with few or no restrictions and would be enough to protect Canadians from financial disasters,â the party said of guaranteed income. âIt will also be simpler and therefore less expensive to administer.
Like other parties, the Greens promise to close tax loopholes. The Green Party also plans to increase the corporate tax rate from 15% to 21%, a 5% surtax on commercial bank profits, a 0.5% financial transaction tax in the financial sector and a tax. of 1% on the family fortune above 20 million dollars.
The party said companies keep money in their bank accounts instead of investing it.
“This dead money must be mobilized for the transition to a green and renewable economy”, declares the platform of the party.
People’s Party of Canada
The party promises to phase out all COVID spending programs and new spending programs announced by the Trudeau government, with the goal of eliminating the deficit by the end of its first term. He also promises to end corporate welfare, foreign development aid and the CBC to make it happen.
“Debts and deficits are nothing more than deferred taxes on our children and grandchildren,” the party says. âInstead of buying votes with borrowed money, a responsible government should aggressively cut spending. “
The party’s platform also promises to cut corporate income tax from 15% to 10% in a single term. The party also plans to eliminate the capital gains tax and reduce income taxes when the deficit is eliminated. This is associated with the end of business subsidies.
âOttawa should stop taking billions of dollars from the private sector and redistributing them through grants,â the party said. “It should lower taxes for all businesses and encourage savings and investment to make our economy more productive.”
Dorian Baxter, Independent
Newmarket-Aurora independent candidate Dorian Baxter said the key to economic recovery is eliminating vaccination mandates and supporting minimum wage increases.
âI think there has to be a very clear change in the way small businesses are taxed,â Baxter said. âWe have to be much more realistic with the minimum wage. We can’t continue to expand this without understanding the mechanics of how it works for small businesses. “
He added that Canadian politicians are earning way too much. He said he would personally donate half of his salary to the constituency.
As for taxation, Baxter said he wanted it as low as possible, comparing himself to U.S. Republicans.
âTo me, the less we can tax people, the more we can inject into the economy the kind of energy we need,â said Baxter.
He said the government can improve the economy by leveraging Canada as a bilingual nation, with access to English and French speaking countries as trading partners.
âWe have the opportunity to literally seize the leadership of the world, unfortunately, of the failed United States,â he said. “The economy can be absolutely energized to a level that has never been imagined.”