[bsa_pro_ad_space id=1 delay=10]

More than $3.4 bln in new revenue belies Tory claim of lowering taxes: Liberals

By , on January 30, 2015


Ralph Goodale (Facebook photo)
Ralph Goodale (Facebook photo)

OTTAWA — As Canadians begin to look forward to a series of new federal tax measures kicking in soon, newly-released figures show changes to taxes and tariffs are also helping bolster the government’s bottom line.

Data tabled in the House of Commons this week shows a variety of tax changes and the elimination of old tax credits will rake in $3.4 billion more for the federal government in 2015-2016.

And those numbers don’t include what the government is making on user fees for services like passports and citizenship or recent new tariffs on imports.

The $3.4 billion figure comes from data in an answer to a question on the order paper by deputy Liberal leader Ralph Goodale.

It’s a telling answer, albeit an incomplete one, he said in an interview.

“It says that this government has been contrary to what they constantly assert — that they only reduce taxes, they never increase taxes,” he said.

“The evidence is that they have over the last number of years generated billions of dollars in increased taxes and they can deny all they like, but the evidence is clearly there in the answer to this question. So the government’s position is entirely hypocritical.”

Making up the $3.4 billion is everything from the removal of a deduction for safety deposit boxes to a decrease in the tax breaks for credit unions.

In its response to Goodale’s question, the finance department says the overall federal tax burden to Canadians is at its lowest level in more than 50 years.

“The government has provided significant tax relief for individuals, families and businesses, further contributing to an environment where Canadians can succeed and Canadian businesses can grow, create new well-paying jobs and compete internationally,” the department says in the answer.

In some cases, the department argues, the new taxes are a result of an attempt to streamline older programs, such as the new tax structure for scientific research programs.

Though Goodale had asked for a breakdown of all new tariffs, service charges and fees since 2005, the government did not provide all of the data.

For example, last year the government raised passport fees from $87 to $120 for a five-year passport, and introduced a 10 year passport at a cost of $160.

That brought in $462.5 million in fees, numbers that are not included in the data provided to Goodale.

His office says they will be pursuing more detailed figures.

[bsa_pro_ad_space id=2 delay=10]