Quebec to announce tax breaks in economic update

The Coalition Avenir Québec government will be offering Christmas goodies to Quebec’s families in its economic update Monday. Acting on a key election promise, Finance Minister Éric Girard is to announce he is bolstering Quebec’s family allowance system so the second- and third-born children get as much allowance as the first born, government sources said Sunday. Girard will announce the increases — to be phased in over four years — Monday at a news conference when he updates the state of the province’s finances. A sign of the importance of the event for the CAQ’s political agenda, Premier François Legault will deliver a speech following the announcement. “Families,” a source emphasized Sunday when asked about Legault’s speech, which is designed to give Quebecers a good feeling at having voted for the CAQ and its change agenda Oct. 1. Legault advertised his plan in last week’s opening speech to the legislature, referring to what he called the “absurdity” of the current system whereby a couple’s second and third children get fewer tax credits than the first. Legault said he will correct the situation. “It’s as if the state believes it costs less to have a second and third child than the first,” Legault told the house. “We are going to change this situation by creating a new program which is simpler, more logical and generous so parents get higher amounts than they get now for a second child.” Legault and the CAQ talked about the change repeatedly during the campaign. In the CAQ’s financial framework, the cost of improving the system was $763 million. At the time, the CAQ said once fully in place, the arrangement would mean a family with a total income of $107,000 would have an additional $1,200 a year per child. Monday ’s update is also expected to include fiscal measures to help seniors and the daycare system. The economic update will also give Quebecers a better idea of the state of the province’s books. In November, analyzing the results for the first five months of the fiscal year, Girard said Quebec was sitting on a $3-billion surplus. That number was downplayed by Legault, who said it is too high because it did not account for the full year’s spending and revenues. Later this week, the CAQ will table a bill implementing its plan for a flat-rate school tax for the province, which will also result in savings for many. The bill will reduce Quebecers’ school tax to a little more than 10 cents per $100 evaluation. The legislature will recess for Christmas on Friday.