The Trudeau Liberal government believes the economy is performing better than many Canadians perceive it to be.

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Being in opposition comes with the crucial responsibility of holding government accountable—a duty I take very seriously. This role demands thorough due diligence and scrutiny of government policies and actions.

Over time, opposition parties typically recognize patterns in how the government they scrutinize operates, making few government policies truly surprising.

However, in the past week, all of that changed when the Trudeau Liberal government announced two measures that took many who follow Canadian politics by surprise.

The first measure was a "GST Christmas Holiday"—a temporary expansion of GST-exempt items from December 14, 2024, to February 15, 2025.

Many of the items that will soon be temporarily GST-exempt are likely to appeal to Canadian families. These include children's clothing and shoes, car seats, diapers, and toys.

The list extends further to include books, print newspapers, puzzles, and Christmas trees—both real and artificial. Moreover, all restaurant dining will be GST-exempt during this period, whether dining in, taking out, or ordering delivery.

The list of temporary GST exemptions also includes several controversial items. Beer, cider, pre-mixed alcoholic drinks, junk foods, and expensive video gaming terminals will all become cheaper during this GST-free period.

The Trudeau Liberals' gift-giving does not end there. They have also announced the "Working Canadians Rebate," which will send a $250 cheque in early spring 2025 to 18.7 million Canadians who worked in 2023 and earned up to $150,000 in individual net income.

Those who are disabled or unemployed will not qualify for the $250 Working Canadians Rebate. To be clear: while those earning up to $150,000 will receive this rebate, those most in need—people with disabilities and the unemployed—will not qualify for this Liberal government program.

The Liberals' GST "Christmas holiday" is estimated to cost $1.6 billion, while the $250 "Working Canadians Rebate" will cost approximately $4.7 billion—bringing the combined cost to over $6 billion. In provinces with harmonized sales tax (HST), this unilateral action will have an even greater impact, as their HST rates range from 13% to 15% and not just the 5% GST we have in British Columbia.

If you're wondering why the Trudeau Liberal government believes these programs are necessary, the Finance Minister recently stated, "People have been talking about a 'vibecession'... and the fact that Canadians just aren't feeling that good."

This begs the important question, what is a “vibecession”?. According to various urban dictionary definitions a “vibecession” is a neologism that refers to a disconnect between the economy of a country and the general public's negative perception of it.

In other words, the Trudeau Liberal government believes the economy is performing better than many Canadians perceive it to be. These programs are designed to help Canadians "get past that 'vibecession' because how [they] feel really does have an economic impact"—again, I quote the Finance Minister directly.

My questions to you this week: Do you agree with the Finance Minister that Canada is experiencing a "vibecession"—that is, is the economy actually performing better than many Canadians believe it is? Why or why not?

I can be reached at [email protected] or call toll free 1-800-665-8711.

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Dan Albas is the Member of Parliament for the riding of Central Okanagan-Similkameen-Nicola and the Co-Chair of the Standing Joint Committee for the Scrutiny of Regulations. In addition, Dan co-chairs an All-Party Parliamentary Cancer Caucus. Dan's riding includes the communities of Kelowna (specific boundaries), West Kelowna, Peachland, Summerland, Keremeos, Hedley, Princeton, Merritt and Logan Lake.
You can reach Dan by calling 1-800-665-8711 or visit: DanAlbasMP.ca
Our mailing address is:
Dan Albas MP
101-3731 Old Okanagan Hwy
West Kelowna, British Columbia V4T 0G7
Canada

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