Saturday July 5, 2025 | VICTORIA, BC
Political-economic analysis by Mary P Brooke | Island Social Trends
On July 4, Canadians from coast to coast to coast will have received their latest GST/HST credit payment.
It’s a low-income benefit issued by the federal government.
What is the GST/HST credit:
As stated by the federal government: “The GSTHST rebate is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset the GST or HST that they pay. It may also include payments from provincial and territorial programs.”
Taxpayers are automatically considered for the GST/HST credit when they file their taxes.
Political bragging may backfire:
The Liberal Party (not the government itself) posted in social media on July 4 that the GST/HST and other benefits “will put more money in your pockets throughout this month”.
There’s nothing new about most of the listed benefits. All of them currently exist except that the Disability Benefit is new (at an amount of $200 per month that the NDP complained was too low).
The Liberal Party listed in their X post: GST/HST Credit | Advanced Canada Workers Benefit | Canada Disability Benefit | Canada Child Benefit | Canada Pension Plan & Old Age Security (two separate things).
Canadians who receive any of these benefits are likely grateful. What people often don’t like is a form of promotion that makes it seem new or amazing. That could backfire politically for the Liberals. Maybe in a small way, but it doesn’t help the ‘new Liberal government’ gain positive traction at this time.
Reality check:
What’s most significant starting July 2025 is that the carbon tax credit/rebate is gone.
Cancellation of the carbon tax by the Carney government this spring was to presumably boost affordability for most Canadians — the thinking being that fuel-related things would cost less (and anything that requires transportation using fuel would somehow cost less).
But most sectors and businesses don’t drop their prices when a tax is removed; if anything they find a middle-ground somewhere between what the cost would be without any tax and what people were used to paying when there was a carbon tax in place.
Carney made that decision to drop the carbon tax as a way to undercut the momentum that the Conservative Party was making with that promise to ‘axe the tax’. Playing politics has impacted many low/modest-income Canadians in an immediate and negative way.
Less to live on:
Low/modest-income Canadians are now paying a price. In real dollars they now have less to live on each month.
Elected officials and gGovernment decision-makers may not realize that many people live so close to line in this distorted economy that even $150 extra dollars every three months helps round out the edges of meeting monthly obligations.
Not receiving a carbon tax credit means that some low-income and moderate-income Canadians are getting about *half* of what they would usually receive at the start of January, April, July and October.
They will receive their GST/HST credit but not the amount from the former carbon tax. For these struggling Canadians, fewer real bills will get paid by households that are getting by month-to-month.
Lower standard of living in Canada:
Housing (rent or own) takes the biggest bite out of people’s monthly income. After that, there are often tough choices among other life essentials like groceries, clothing, transportation, and family needs.
Life in Canada sure ain’t what it used to be. There’s been a steady down-slide since around the year 2000. some got richer faster, and most others have fallen behind.
Politically short-sighted:
How does this help the Liberals politically? It simply does not. People won’t forget this. If the Carney government has a way to boost or replace credits to struggling households, they might do well to announce that soon.
However, with the intention of the government to now spend a lot more on defence and big infrastructure projects they are not likely to be coming up with new social programs.
Carney is already governing like a progressive Conservative. One wonders if the NDP-loyalists who in droves disloyally voted for the Liberals out of ‘Trump fear’ are now regretting their choice.
This current federal government is highly unlikely to consider bringing in a Guaranteed Livable Income or Basic Income.
===== RELATED:
- Carney announces new directions and spending for Canadian defence (June 9, 2025)
- Businesses & consumers need significant interest rate drop March 12 (March 10, 2025)
- Political misfire to associate existing BC income-related credits with holiday season expenses (December 30, 2024)
- Federal grind on low-income seniors & families continues in new year (January 3, 2022)
- NEWS SECTIONS: LIBERAL PARTY OF CANADA | 45th CANADIAN PARLIAMENT | AFFORDABILITY | INCOME EQUITY