BONNIE JAMES

– LOCAL JOURNALISM INITATIVE

FORT-COULONGE – On April 22, the Pontiac Chamber of Commerce and the Community Futures Development Corporation (SADC) hosted Pontiac MP Sophie Chatel for a town hall style discussion of the 2024 federal budget at Café Downtown in Fort-Coulonge. Approximately 20 people attended, mostly Chamber members.

Chamber president Sébastien Bonnerot opened by introducing Chatel, an experienced fiscalist and international tax expert, who worked at the Department of Finance for years. Chatel said that she would be giving a high-level presentation of the most important measures in the budget.

The 2024 federal budget is titled: Fairness for Every Generation. Chatel explained that the budget recognizes that one of the main problems Canada is facing is the gap between generations, with affordable housing the biggest challenge for the younger generation. She said that young people feel that homeownership is out of reach. In light of this, housing is one of three main focuses of the budget. With an objective of increasing the housing supply, the budget allocates $13.2 billion to build 3.9 million new homes across Canada by 2031.

The second focus is on “making life more affordable” with specific measures for young adults, children, all generations, and farmers. Of particular interest for the Pontiac is enhanced student loan forgiveness for doctors and nurses who choose positions in rural and remote areas.

For farmers, the budget launches consultations on the “right to repair” regarding copyright legislation that has hampered their ability to work on their own equipment. The budget also eliminates interest payments on the first $250,000 of agricultural loans Regarding succession, the lifetime capital gains exemption for farmers is increased when they sell their farm to $1.25 million. An additional $2 million is also partially exempt.

The third focus is on investment in green and technological economic transition featuring the net-zero economy plan, clean electricity tax credit, artificial intelligence (AI) sector investment, and 10% electric vehicles supply chain investment tax credit.

Lastly, the budget “improves tax fairness” by increasing the tax on capital gain over $250,000 per year.

The inclusion rate for annual capital gains exceeding that amount will increase from 50% to 66% as of June 25, 2024, with the rate for gains up to $250,000 remaining at 50%. Specific exemptions will be maintained for principal residences. The increase is expected to generate $19.4 billion in revenue over the next four years which will help fund the housing initiatives etc.

Chatel also stressed that the deficit will be maintained at $40 billion and is expected to decrease in the coming years.

Questions & Answers

Jon Stewart asked how the Liberals will explain the carbon tax to businesses to counter the Conservatives’ “axe the tax” platform. Chatel replied that the federal carbon tax does not apply in Quebec as the province has its own carbon pricing scheme. She pointed out that the Conservative party included a similar cap-and-trade carbon policy in their 2021 platform.

Stewart also asked how the federal government can help Pontiac businesses hit hard by the costs of changes required under Bill 96. Chatel replied that the federal government is supporting the court challenge against the use of the notwithstanding clause in Bill C-21, which was also used in the invocation of Bill 96. She said that if the challenge is successful, Bill 96 will need to be reopened.

Local investor Larry Charbonneau talked about the challenge of offering newly renovated rental units at an affordable price: “When we fix up apartments, people can’t afford to rent them. We can’t afford to rent them out at $700, but people can’t afford $1,200. So what are we supposed to do?” he asked. Chatel didn’t offer an answer but listened empathetically.

Chamber Vice President Todd Hoffman asked Chatel if the budget was driven by data or feelings, referring to the title. Chatel replied that the theme of the budget is based on a desire for fairness but said that data was also considered. Hoffman stated that the youth of all generations have always felt hard done by and that the budget should be based on national interest. Chatel responded: “I was able to work part-time, go to school, and still buy a house. Youth can’t do that now.”