Anyone who needed a few billion more to improve the offer for state employees quickly became an easy solution. The state no longer has these billions in its coffers because it has given them back to taxpayers. Scandal!
Two decisions by the Legault government were highlighted. Checks will be sent to Quebecers to offset inflation and the tax cut announced in last spring’s budget.
First, the two payments for inflation. Let’s be clear: the government didn’t give you a gift, it gave you your money back. It was necessary to carefully monitor the revenues flowing into the state coffers in the months when inflation was at its peak. In both Ottawa and Quebec, the governments had some nice surprises.
The money came in
No wonder: VAT is charged on the sales amount. IF prices go up 6, 7 or 8% like they did in 2022, guess what happens to sales tax revenue. Since this inflation hit households hard, the Quebec government decided to return this money to them. As simple as that.
And most public sector workers received that money, as the vast majority earn less than the set limit of $100,000. Should this money have been kept in full so that it could be given entirely to state employees in the negotiations? I don’t understand why not since inflation has affected everyone.
When it comes to tax cuts, the government has not taken a radical step, but it is still significant. He reduced the tax rate for the first two income brackets by one percent. Enough to notice a difference in his salary. For income over $98,500, the tax rate remained the same.
Most taxed
My colleague Michel Girard recalled in his pages at the end of the week that Quebecers suffer by far the highest tax burden in Canada. (He could have said that in North America.) Providing some relief to the middle class is entirely welcome and logical at a time when the cost of living is particularly painful.
Public sector employees also benefited from this tax cut. Like the rest of the population, their purchasing power has also increased somewhat. Union spokesmen today cannot argue that tax cuts are an illegitimate gift to a select group. Their members benefited.
So, yes, in these negotiations we must improve the working conditions of public sector employees. With the scope we have, we can do this and we can also include efficiency gains in the negotiations.
But no, we don’t have to feel guilty about tax cuts, like taking lunch out of someone’s mouth.
