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Globe editorial: Why are B.C. renters subsidizing B.C. homeowners? Answer: Politics – The Globe and Mail

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A federal-provincial panel on housing supply and affordability in British Columbia expected trouble last spring when it filed its final report. It proposed medicine for a market gone haywire, but predicted that some of its advice was nevertheless likely to be “met with resistance.”

Among the recommendations was the obvious – governments need to work to get more housing built. But the panel, a mix of public sector and corporate representatives, also unanimously called for the end of the B.C. homeowner grant. It’s an annual property tax subsidy, dating back to 1957, paid to almost all B.C. homeowners.

The money starts at $570 per homeowner per year, with more for rural properties and owners who are seniors. The grants are expected to cost the B.C. treasury $887-million in 2021-22. The subsidy is only for homeowners who live in their homes. Landlords are not eligible. Nor are renters.

And this isn’t a subsidy for low-income households. As property values in B.C. have soared, provincial governments, both left and right, have escalated the value of the exemption. Five years ago the subsidy went to homeowners whose home was worth $1.2-million or less. Last year it was $1.625-million. This year, after the market soared some more, the cap – like a magical mountain that grows taller by the day – was raised by another 22 per cent, to $1.975-million.

The rising peak means that more than nine out of 10 homeowners will be receiving a subsidy from taxpayers – even if they have high incomes, and even if their home’s price keeps rising. The province issued its latest annual BC Assessment data last week; it showed that, in Metro Vancouver, the value of detached properties increased by hundreds of thousands of dollars.

The expert panel looked at all of this and saw the obvious: The system is strikingly unfair. It’s a tax break that mostly benefits people of above-average incomes. In the City of Vancouver, for example, more than half of households rent, and they’re being squeezed by rising costs. Yet homeowners, whose asset values are rising, are getting a payment from other taxpayers. And the subsidy helps boost home prices.

The panel called for the nearly $1-billion giveaway to be ended, with the money instead devoted to social housing. The panel also proposed “more equitable treatment of renters and homeowners,” since renters “end up paying higher taxes to offset revenue losses from homeowner exemptions.”

But highlighting the “disproportionate policy influence” of homeowners, the panel said that reform would not be politically easy, and would require “strong leadership.”

The NDP government rejected the proposal within hours of its publication. “We’re not interested in making any changes,” B.C.’s Finance Minister said in the legislature of the homeowner grant.

Across the country, there are variations on this generous tax treatment of homeowners vs. renters, but nothing so striking as in B.C. Nova Scotia has a system that favours longer-term owners at the expense of others, including renters. Toronto charges a higher property tax rate on apartment buildings than houses. And by not taxing capital gains on the sale of a principal residence, Ottawa provides what is effectively a national tax break worth $7.8-billion a year.

But B.C. is on its own with its regressive policy of giving cash to homeowners, every year, just because. Sixty-five years ago, a populist Social Credit government came up with this plan to regularly send out cheques. At the time, it was understood for what it is: Vote-buying, pure and simple. Yet as with similar measures, once introduced, it became difficult to end. Giving away money is surprisingly popular, at least among its recipients.

Which is why B.C.’s housing panel correctly anticipated the result of its call to turn off the taps. Even an NDP government deemed subsidies to owners of homes worth up to almost $2-million to be politically untouchable.

But there has to be a way to start whittling down the size of the grant. First, stop escalating the annual exemption level. Then a few years later, start ratcheting it down. If it must continue, only offer it to homeowners with low incomes. The nearly $1-billion a year this is costing B.C. could be far better invested in addressing the side-effects of Canada’s most inflated housing market, rather than further pumping it up.

But as the panel said, that would take something that’s always in short supply: Leadership.

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Youri Chassin quits CAQ to sit as Independent, second member to leave this month

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Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.

He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.

In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.

Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.

He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.

Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.

He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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‘I’m not going to listen to you’: Singh responds to Poilievre’s vote challenge

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MONTREAL – NDP Leader Jagmeet Singh says he will not be taking advice from Pierre Poilievre after the Conservative leader challenged him to bring down government.

“I say directly to Pierre Poilievre: I’m not going to listen to you,” said Singh on Wednesday, accusing Poilievre of wanting to take away dental-care coverage from Canadians, among other things.

“I’m not going to listen to your advice. You want to destroy people’s lives, I want to build up a brighter future.”

Earlier in the day, Poilievre challenged Singh to commit to voting non-confidence in the government, saying his party will force a vote in the House of Commons “at the earliest possibly opportunity.”

“I’m asking Jagmeet Singh and the NDP to commit unequivocally before Monday’s byelections: will they vote non-confidence to bring down the costly coalition and trigger a carbon tax election, or will Jagmeet Singh sell out Canadians again?” Poilievre said.

“It’s put up or shut up time for the NDP.”

While Singh rejected the idea he would ever listen to Poilievre, he did not say how the NDP would vote on a non-confidence motion.

“I’ve said on any vote, we’re going to look at the vote and we’ll make our decision. I’m not going to say our decision ahead of time,” he said.

Singh’s top adviser said on Tuesday the NDP leader is not particularly eager to trigger an election, even as the Conservatives challenge him to do just that.

Anne McGrath, Singh’s principal secretary, says there will be more volatility in Parliament and the odds of an early election have risen.

“I don’t think he is anxious to launch one, or chomping at the bit to have one, but it can happen,” she said in an interview.

New Democrat MPs are in a second day of meetings in Montreal as they nail down a plan for how to navigate the minority Parliament this fall.

The caucus retreat comes one week after Singh announced the party has left the supply-and-confidence agreement with the governing Liberals.

It’s also taking place in the very city where New Democrats are hoping to pick up a seat on Monday, when voters go to the polls in Montreal’s LaSalle—Émard—Verdun. A second byelection is being held that day in the Winnipeg riding of Elmwood—Transcona, where the NDP is hoping to hold onto a seat the Conservatives are also vying for.

While New Democrats are seeking to distance themselves from the Liberals, they don’t appear ready to trigger a general election.

Singh signalled on Tuesday that he will have more to say Wednesday about the party’s strategy for the upcoming sitting.

He is hoping to convince Canadians that his party can defeat the federal Conservatives, who have been riding high in the polls over the last year.

Singh has attacked Poilievre as someone who would bring back Harper-style cuts to programs that Canadians rely on, including the national dental-care program that was part of the supply-and-confidence agreement.

The Canadian Press has asked Poilievre’s office whether the Conservative leader intends to keep the program in place, if he forms government after the next election.

With the return of Parliament just days away, the NDP is also keeping in mind how other parties will look to capitalize on the new makeup of the House of Commons.

The Bloc Québécois has already indicated that it’s written up a list of demands for the Liberals in exchange for support on votes.

The next federal election must take place by October 2025 at the latest.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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Social media comments blocked: Montreal mayor says she won’t accept vulgar slurs

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Montreal Mayor Valérie Plante is defending her decision to turn off comments on her social media accounts — with an announcement on social media.

She posted screenshots to X this morning of vulgar names she’s been called on the platform, and says comments on her posts for months have been dominated by insults, to the point that she decided to block them.

Montreal’s Opposition leader and the Canadian Civil Liberties Association have criticized Plante for limiting freedom of expression by restricting comments on her X and Instagram accounts.

They say elected officials who use social media should be willing to hear from constituents on those platforms.

However, Plante says some people may believe there is a fundamental right to call someone offensive names and to normalize violence online, but she disagrees.

Her statement on X is closed to comments.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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