While the Prime Minister assesses the chances of Quebec falling into recession at 50%, his government has decided to limit the increase in the school tax to 3%.
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With the rising cost of living comes the risk of a recession. Yesterday, the Federal Reserve of the United States raised its key rate by 0.75%.
Francois Legault called the U.S. reserve measure "good news" for slowing inflation and rising prices for consumers.
But he also admitted during a visit to Baie-Comeau yesterday that the chances of experiencing a recession were growing strongly.
“Obviously, by increasing interest rates, it makes business investments less attractive. There is a risk of dragging down the economy,” the prime minister said. "I think we're maybe 50-50 that there's a recession. »
Avoid a price shock
As the elections approach, its Minister of Finance, Eric Girard, has also announced that he will limit the increase in the school tax from 2% to 3% to avoid a price shock.
School service centers are also being hit hard by inflation. They even predicted a 17% increase in the school tax bill.
These increases are usually paid for by taxpayers so that the centers can pay for additional expenses related to school services and salary adjustments.
For example, the owner of a house valued at $350,000 would have suffered an increase of around $60. By intervening, that increase will be $10, he says.
- Listen to Alexandre Moranville-Ouellet at the microphone of Mario Dumont on QUB radio:
The centers' shortfall will be made up by annual financial assistance of $173 million from the government.
“People who own homes face rising inflation, like everyone else, but they also have a multiplier, which is rising interest rates. There are also a lot of people who have variable rate mortgages, ”added the Minister of Finance, arguing that this is not an electoral measure.
“We had to announce that today [yesterday]. The school tax rate will be published today [yesterday]. The tax bills will be sent in July. »
After the $500 cheques, this is an additional measure added to counter the rising cost of living.
Thus, inflation is forcing Quebec to readjust and dip into its reserves in order to help families and maintain services.
Unlike the Prime Minister, the Minister of Finance had minimized the risk of recession yesterday.