Charest, Legault promising tax breaks and credits
Published Tuesday, August 7, 2012 11:27AM EDT
Last Updated Tuesday, August 7, 2012 9:52PM EDT
In pursuit of middle class votes, political parties are promising the highest-taxed workers in North America will be able to keep more money in their pockets.
Francois Legault said on Tuesday that if the Coalition Avenir Quebec becomes the next government it will, at the end of a five-year term of office, reduce each family's taxes by $1000.
The CAQ leader said he would save couples with or without children the money by phasing out the 'health contribution,'saving a family $400, and another $600 in tax savings would be had by 2018.
“We think it's far and we think it will help the economy and we think it will make a richer Quebec,” said Legault.
Legault believes a CAQ government could save money by reducing bureaucracy, and promised full details 'soon.'
The cost of the plan comes with a hefty price tag, however, of 41.8 billion per year, once it’s fully implemented, something Liberal leader Jean Charest was quick to criticize Tuesday.
“It’s irresponsible. Where will we get the money?” he said, adding that seven days into the election, Legault has promised $4.3 billion in spending, a move he said would put the economy at risk.
Legault said he would pay for the cuts by cutting 7,000 public sector jobs eliminating school boards and regional health agencies and reducing staff at Hydro Quebec.
Meanwhile, Charest is offering multiple specialized tax credits.
On Monday he offered parents a $100 tax credit for school supplies.
The Liberal leader estimates such a move could cost $45 million each year, and said parents of school-age children would receive a cheque each summer.
Then on Tuesday, Charest proposed a one-year tax credit for people making renovations to their homes that would improve energy efficiency.
People would not receive anything for expenditures of less than $1,000, but receive a 20 per cent credit for money spent over that amount -- up to a cap of $3,000.
As an example, someone who spent $2,000 to seal drafty doors and windows and add insulation would receive a $200 credit.