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OTTAWA — Persistently down in the polls and with a Parliament that has ground to a halt, the Liberals attempted to solve both problems Thursday with a two-month GST cut and $250 cheques to millions of Canadians, just in time for the holiday season. Prime Minister Justin Trudeau said his government is trying to give Canadians a break on the cost of living when prices are typically highest. “Our government can’t set prices at checkout, but we can put more money in people’s pockets,” he said. Under the Liberals’ proposal, the GST cut would be applied to children’s clothes, toys, diapers and car seats and the Christmas trees those toys would go under. All of the beer, wine and cider Canadians buy for holiday parties would be exempt and many grocery items that are currently subject to GST — like pre-made meals and salads, as well as chips and candy — would not have the tax applied from Dec. 14 until Feb. 15. Canadians who don’t feel like cooking themselves would also be covered, because the GST will not apply to restaurant meals during the two-month period. The GST cut would cost the government an estimated $1.6 billion. For a family spending $2,000 over that period, the government estimates a $100 savings. Pratik Parmar, owner of The Cottage Cheese, a restaurant in Kensington Market that specializes in Indian cuisine, says he is still trying to understand how Ottawa’s announcement will impact his business. “It’s a good initiative, but only for some small period of time,” Parmar said. “It does not solve the problem completely.” The restaurant industry was among the hardest hit by pandemic closures and still hasn’t recovered. While inflation has cooled this year, consumers went through two years of above-average increases. The Liberals have trailed the Conservatives in public opinion polls for more than a year now, sometimes by more than 20 points, with cost of living consistently ranking as a top issue. Consumers are spending less on dining out while business owners continue to face rising labour costs, sky-high rents and debt loads. Parmar is hopeful the GST cuts will help stimulate post-holiday season traffic at his restaurant. “January is dead, as always,” he said. Trudeau also announced Thursday that anyone who worked in 2023 and made less than $150,000 would also qualify for a new Working Canadians Rebate of $250, expected to be delivered in April. The government estimates the rebate will go to 18.7 million Canadians and cost $4.68 billion. Trudeau had previously rejected the suggestion his government send cheques to Canadians, arguing they would be inflationary, with prices rising right alongside any government largesse. On Thursday, he said that is no longer the case. “We’ve been close to a year within the target range that the Bank of Canada set, which is why the Bank of Canada is now dropping interest rates faster than for most of our peer countries,” he said. “This is something that we’re able to do because Canada has one of the strongest balance sheets in the world.” Conservative Leader Pierre Poilievre said the Liberals are offering a temporary tax holiday, while continuing to increase the carbon levy and other costs for Canadians. “What we have is a two-month temporary tax trick that will not make up for the permanent quadrupling of the carbon tax on heat housing, food and fuel,” Poilievre said. “Ironically, in just a few months, Trudeau and the NDP plan to raise taxes on all the same items they claim they’re giving you a break on directly through the carbon tax.” Poilievre called on the government to scrap the consumer price on carbon and implement his proposal for a permanent GST cut on newly constructed homes. At Queen’s Park, where Premier Doug Ford’s government has promised to send $200 cheques to Ontarians early in the new year, Finance Minister Peter Bethlenfalvy accused the prime minister of being a copycat. “Obviously that was our idea,” Bethlenfalvy told reporters. “But look, the best thing he can do is cut that carbon tax ... if you really want to put money back in people’s pockets.” Ford’s rebate plan is expected to cost $3 billion. The New Democrats have been proposing a broader GST cut, which would cover cellphone, internet and home heating bills and would be permanent. NDP Leader Jagmeet Singh said Wednesday that his party had pushed the Liberals into action, even if it was only partially what the NDP had proposed. “This is temporary, and it doesn’t include the monthly bills, but we know that middle-class families need a break, so we’re going to work as hard as possible to get this done as quickly as possible,” he said. However, whether the temporary GST cuts can be implemented will now depend on the government being able to pass legislation through what has become a stalled Parliament. The House of Commons has ground to a halt for weeks over a privilege debate that has prevented any legislation from advancing, as the opposition demands documents related to Sustainable Development Technology Canada be tabled in the house, and the government cites Charter of Rights issues and attorney-client privilege in withholding some of them. The New Democrats are not willing to relent on the broader privilege debate, but will work with the government to pass the GST cuts. To do so, the NDP hopes to pause — but not end — the ongoing stalemate by temporarily adjourning debate in the House of Commons for a single day. Singh plans on making a “programming” motion, which would require the Liberals’ support to pass, that would theoretically allow for the legislation to be introduced and green-lit in one day. That would allow debate on the privilege motion to continue the next sitting day. “We don’t want to let the Liberals off the hook, but we want to see some relief for middle-class families,” he said. Business groups mostly welcomed the proposed GST suspension. Canadian Federation of Independent Business president Dan Kelly said this will be a helpful but complicated initiative for his members. “The biggest issue members have right now is consumer demand, so anything which helps with that is good, but the administrative complexity of this could outweigh the benefits,” he said. “My biggest concern is am I going to get a bunch of calls from members in March or April because they’ve been told they gave a GST break on things they shouldn’t and didn’t do one on things they should have.” Kelly Higginson, president and CEO of Restaurants Canada, said more than half of restaurants are currently losing money or just breaking even. Higginson said fewer Canadians are dining out, and they’re spending less when they do. “The recent drop in foot traffic has been deeply discouraging for our operators as they head into the challenging winter season,” she said. “Today’s announcement restores some much-needed hope to our industry and we are optimistic it will translate to increased spending at local restaurants across the country.”MINNEAPOLIS — Lindsay is back in action. The Lynx announced Saturday that Lindsay Whalen, their Hall of Fame point guard, will join the team as an assistant coach along with former Washington Mystics coach Eric Thibault, who will be associate head coach. Whalen, who led the University of Minnesota to a Final Four and was a three-time All-America before starting her pro career, also coached her alma mater for five seasons after retiring from the WNBA as a four-time league champion with the Lynx playing for Cheryl Reeve. She was a two-time Olympic gold medalist and was inducted into the Basketball Hall of Fame in 2022. Reeve, the Lynx president of basketball operations and head coach, announced the hires in a news release. The team will hold a news conference Monday. “Eric has vast experience coaching in the WNBA as both a head and an assistant coach and ... Lindsay adds a unique perspective as a Lynx legend and Naismith Hall of Famer,” Reeve said in the release. Thibault coached the Mystics the past two seasons after being an assistant for the previous 10 years under his father, Mike Thibault. Washington won the WNBA title in 2019. Eric Thibault was fired in October after the Mystics went 33-47 in his two seasons, including 14-26 in 2024. Whalen was 71-76 in her five seasons (2018-23) with the Gophers, and 32-58 in the Big Ten. Whalen left the job in March 2023 in what was described as a mutual decision with athletic director Mark Coyle. She accepted a $215,000 settlement to be terminated without cause rather than continue to work for her alma mater as a special assistant. Whalen said at the time she was not ready to return to coaching right away. As the Lynx made a run to the WNBA Finals last season, she cheered them on from courtside. “I’m so excited to be back with the Lynx and back with Coach and Bekky [assistant coach Rebekkah Brunson],” Whalen said in the release. “Eric and I have also known each other for a long time, and for me, I couldn’t imagine joining a better staff as I return to coaching and get my first opportunity to coach in the WNBA. We have a special group with this team and I can’t wait to get to work.” Lynx associate head coach Katie Smith left the team on Nov. 11 to join the staff at Ohio State, her alma mater. Reeve brought in Smith in 2020, after she her contract wasn’t renewed following two losing seasons as head coach of the New York Liberty. Whalen’s jersey No. 13 is retired by both the Lynx and the Gophers. Whalen was a five-time All-Star in nine seasons in Minnesota after starting her WNBA career with six seasons at Connecticut, where she played under Mike Thibault. She played in 480 regular-season games, winning 323 (second most behind Sue Bird in league history) and won 54 postseason games (second in league history behind Brunson’s 57). Whalen won Olympic gold medals with Team USA in 2012 and 2016. ©2024 The Minnesota Star Tribune. Visit startribune.com . Distributed by Tribune Content Agency, LLC
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