Should the Feds Proceed with $250 Working Canadians’ Rebate in 2025?

It was a controversial move that contributed to the resignation of Canada’s Finance Minister:  a GST/HST Holiday and a proposed $250 Working Canadian’s Rebate for those who filed a 2023 tax return, had a net income under $150,000, and also contributed to the CPP.  Was it a good idea? The future of the Working Canadian’s Rebate remains uncertain, as it was noticeably absent from the government’s December 16 Economic statement, and that’s okay by Knowledge Bureau Report readers:  85% answered no to going ahead with this poorly-received program.  Here’s what our readers said:

“What can $250 help you with?  I would give it to “seniors” who only receive CPP and OAS, and to taxpayer who reported less than $35,000 in net income on their 2023 tax return.      Why not simply provide an immediate reduction of their 2024 income taxes payable when they file their 2024 tax return; the same way as we calculate the CWB on their tax return.  Must less costly to implement in-house, and it assists those wo need it most.” - Gaetan

“Is a $250 cheque really going to mean much to someone earning $150,000. It could to someone earning under $25,000. They raise taxes, then give some working people a small token amount back.  It would make more sense, and cents, to give the rebate to all people with an income below X dollars, regardless of its source, if they really wanted to help people who needed it. . .” - Martin

“It is an ill-thought out campaign to buy votes using our own money.  Don’t forget, this government is already running the highest deficit ever in Canada.  Something like this only increases that. I agree that any benefits should be for those who truly need it.” - Robert

“If this was passed into law, the scope should not be so limited.  Why just employed/self-employed taxpayers who pay into CPP?  I personally do not see the logic of that limitation.  There should either be ‘working’ income cap or age limitation and not just the aspect of who pays into CPP.  I do not think this is a necessary credit with the GST break.  However, with an expanded qualifying base, this could have easily replaced the GST break which is a real headache for many small businesses.  That was not certainly not thought through well.” - Diane

“First the limit is much too high. A couple both of whom earn the maximum, would each receive the $250.00. Second the sale tax free items are ridiculous. No thought put into what would best benefit everyone. Third the people most in need do not even qualify. Low income poor, who have trouble paying bills, rent, food.”  - Richard

What about those who pay taxes from dividends? - Igor

“The $250 and the HST holiday reek of desperation.” - Mark

“No. Poorly thought out.  Obviously a last minute decision based on poor polling numbers.” - Bill

Thank you to all who participated in our December Poll! Check out the feedback from tax and financial professionals who shared their thoughts below, and weigh in with your thoughts on the following this month:

Do you agree with extending the charitable donations giving deadline to February 28, 2025 for the purposes of reducing taxes on the 2024 tax return ?