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In addition to the tax breaks, the Prime Minister announced that approximately 18.7 million Canadians earning up to $150,000 in 2023 will receive a one-time $250 check in the spring. This initiative is expected to cost the government around $4.7 billion, and the GST holiday is projected to add another $1.6 billion.
Political Context and Challenges
Political analysts interpret these measures as a strategic move amidst growing political pressure on the governing Liberals, who have been trailing behind Conservative opposition in polls. The timing of this announcement coincides with an earlier proposal from the New Democratic Party (NDP) to temporarily cut GST on essential items.