Economic Statement: Modest Anti-Inflation Measures for Households

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Éstatement ; economic: modest anti-inflation measures for households

Only economically vulnerable citizens and households are targeted by the relief measures announced this afternoon by Finance Minister Chrystia Freeland.

To avoid stoking inflation by being overly generous with too many Canadians, Finance Minister Chrystia Freeland has chosen to target her new aid measures against swings in the consumer price index in particular by providing relief to student loan holders and households “who need it most”.

Among the new measures to help Canadians put forward in its Fall Economic Statement 2022, Minister Freeland is delivering a valuable gift to students and apprentices by permanently waiving the federal portion of interest charged on all student loans, including those currently being repaid, we specify.

As the cost of living rises for many new graduates, the government is taking new, permanent steps to reduce the student loan burden on young Canadians and help them invest in their future, says the Department of Finance .

In addition to student loan holders, low-wage workers will receive several quarterly Canada Workers Benefit (CWB) payments rather than a single annual payment, as is the case in the ;current time.

The Canada Workers Benefit (CWB) is a refundable tax credit that, in a normal year, supplements the income of about three million of the lowest-paid, and often most essential, workers. It is currently paid through tax returns, which means that Canadians who receive it must wait until the end of the tax year to receive assistance to buy essentials, such as groceries. , and to pay their rent, can we read in the documents of the Ministry of Finance.

However, in its Fall Economic Statement, the The government is proposing to pay these workers $4 billion over six years, starting this year, in advance payments three times a year (July-October and January) rather than just once at tax time. /p>

The amount they will receive will be determined based on the income they declared during the previous tax year. This means that workers who were eligible for the ACT last year will be able to start receiving payments as early as next July.

The ACT would, as of next spring, provide up to $1,428 for single workers and up to $2,461 for a family under their existing tax refund, says the Department of Finance.

Among the new measures Ottawa plans to roll out to cushion the impact of inflation is a plan to reduce credit card transaction costs for small businesses.

Indeed, when you use a credit card to pay for an item, the merchant must pay a fee of 1% to 3% of the transaction amount to the credit card company. Which ultimately means a lot of money for merchants and SMEs.

That's why Ottawa intends to open negotiations with the payment card industry and companies to reduce these transaction costs for small businesses without harming other businesses and protecting existing reward points for consumers.

In the event that those negotiations fail, the government will introduce amendments to the Payment Card Networks Act next year and introduce payment card transaction fee regulations, according to the Ministry of Finance.

These announcements are in addition to federal economic relief measures previously announced by the Trudeau government, including the Canadian dental benefit, the creation of a tax-free savings account for the purchase of a first property (CELIAPP) or the payment of double the credit for the tax on goods and services (CTPS) for six months to Canadians who benefit from it.

A supplement to the Canada Housing Benefit was also announced in September which, once approved by Parliament, will provide a tax-free amount of $500 to 1.8 million low-income renters across the country.

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The federal supplement will be offered to applicants for have an adjusted net income of less than $35,000 for families, or $20,000 for individuals, and who spend at least 30% of their income on housing.

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