Liberals’ fiscal update should ensure a recovery that leaves no one behind

Fall Tax Update Released morning It is an opportunity for the Liberal government to outline its latest projections for federal tax revenue and spending, as well as to signal new policy measures in the run-up to next year’s budget.

A statement on the cusp of the holidays suggests that the government is not looking for much discussion and debate. This would be a missed opportunity. The need to “build back better” is more urgent than ever as we realize that COVID-19, in new and different ways, will be with us for years to come.

And yet the recent November employment report seems to indicate a change in the history of the pandemic. Many banking economists are now sending the message that recovery is almost behind usthat it is time to step on the brakes so that “full employment” does not cause uncontrolled wage growth, and to redirect our attention towards an agenda of growth-oriented fiscal programs and tax reform.

That is a cold comfort to many low-income and underserved communities who have suffered the brunt of the pandemic and did not receive notice that the recession has run its course. The rising cost of living strongly affects those who are just overlookingespecially with regard to food, shelter and medication.

Almost 155,000 Canadians continue to work less than half their normal hours, while nearly 200,000 have been out of work for more than a year. More than 230,000 workers, mostly older women, have left the workforce entirely, putting their future financial security at risk. And this does not speak of the 1.5 million people who live in extreme poverty and are forced to depend on welfare, which are largely overlooked in our rush to normalcy.

Pillars of a fair and inclusive recovery

If the pre-pandemic agenda was about the prosperity of a few, the post-pandemic agenda must be focused on the well-being of the many (a detailed plan can be found in the annual publication of the Canadian Center for Alternatives Alternative federal budget). As Canada’s economy recovers, it is important that every job is a good job.

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To accomplish this, the federal government should: establish an independent low-wage commission charged with investigating Canada’s minimum wage policy and its impacts; ensure diversity and community benefits through federal procurement; create a permanent Working Group on Women in the Economy and a new Workers’ Opportunities and Development Fund for training and learning; and implement a youth employment guarantee.

COVID-19 also exposed the glaring gaps in Canada’s income support systems. Analysis by my colleague David Macdonald has shown that more than 1.5 million workers were likely affected by the liquidation of pandemic emergency benefits. The fiscal update should quickly implement a permanent $ 500-a-week floor on employment insurance, among other changes to the program, so that it can support the modern workforce.

Given the threat of the ongoing climate emergency, I will also keep an eye on the fiscal update for clear signs of investment in infrastructure for people, biodiversity and the planet. An immediate moratorium on new fossil fuel extraction projects and a phasing out the production of coal, oil and natural gas as fuel by 2040 is mission-critical, along with a new Just Transition benefit to help workers transition to a new green economy. Creating more livable communities should also be a high federal priority, including expanding the creation of affordable and sustainable off-market housing.

The negative impacts of colonialism on the well-being of indigenous peoples also require immediate action. This fiscal update is an opportunity to advance significant investment in green infrastructure in Indigenous communities, invest in Indigenous food sovereignty, and ensure First Nations communities have clean water and access to reliable broadband infrastructure. .

COVID-19 exposed how central Canada’s care economy is for public health and wellness, and how critically it needs better support. The federal government must commit to eliminating the $ 10-a-day profit motive from child care and long-term care. It is also essential to act quickly to ensure that healthcare workers receive adequate compensation to reflect their full value to society. Given current concerns about affordability, I also hope that the government will accelerate the creation of national programs for pharmaceutical care, mental health, and dental care.

To fund these changes, the federal government should seek new revenue measures, such as a progressive wealth tax, a corporate super-profit tax, and a minimum tax for multinationals, which will help ensure that our debt service ratio and the GDP is maintained. at historic or near-historic lows.

The federal government is most likely reporting a deficit lower than forecast last spring given the positive revisions to projected deficits in Canada’s largest provinces: Ontario, Quebec, Alberta Y British columbia. Any new measure introduced in the update is likely to pay off with higher than expected economic growth.

Canadians want and deserve a comprehensive and inclusive recovery plan. Focusing on growth without acting quickly and boldly to address the systemic issues and inequalities that COVID-19 has exposed and amplified would be a mistake.