On November 30, 2020, the Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance introduced the Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020, the statement outlined the Government of Canada’s measures to fight COVID-19; to support Canadians through this crisis; and to rebuild Canada’s economy, once the virus is beaten.

With a $343 billion projected deficit this year, the government is betting big that the political support they won at the start of the pandemic can be regained by providing even more money for Canadians. 

Now with a vote on the Statement taking place in the House of Commons, and a pending Spring Budget, the upcoming weeks and months will prove pivotal for the future of this Liberal minority government.
 
COVID-19 Federal Support Highlights

• Total support so far includes $322 billion in direct measures to fight the virus and help people; and $85 billion in tax and duty deferrals. 
• Eight of every ten dollars spent in Canada to fight the virus and support Canadians has been spent by the federal government.
• To date, the government has procured more than two billion pieces of PPE.
• The government has invested more than $1 billion in vaccine agreements, securing a domestic supply of up to 429 million doses, of seven promising vaccines – more than ten doses for every Canadian. 

Supporting Canadians through the Pandemic

• The Canada Emergency Wage Subsidy has been extended until June 2021, and the government proposes to increase the maximum subsidy rate back to 75%. This will help workers keep their jobs.
• The Canada Emergency Rent Subsidy and the Lockdown Support will provide direct rent and mortgage support (up to 90%) until June 2021 for organizations affected by COVID-19.
• In August, the government announced the Canada Recovery Benefit, the Canada Recovery Caregiving Benefit, the Canada Recovery Sickness Benefit and enhanced Employment Insurance. Each will be in place through the fall of 2021.
• The Canada Emergency Business Account has been expanded to allow qualifying businesses access to an additional interest-free loan, helping small businesses cover their unavoidable costs at a time when their revenue has dropped
• Providing up to $1,200 through the Canada Child Benefit to low and middle-income families with young children under the age of 6.
• Creating a new stream of credit support for businesses in the tourism, hospitality, travel, and arts and culture sectors, which have been particularly hard hit.
• Reducing student debt by eliminating interest on the federal portion of Canada Student Loans and Canada Apprentice Loans for 2021-22.  

Agriculture

• Tax-deferred Co-operative Share program - The extension of the deferral for another 5 years will support a sector that is currently also facing labour availability challenges, international market volatility as well as increased weather volatility.

National Child-Care Systems

• The government is proposing to spend $420 million in grants and bursaries to help provinces and territories train and retain qualified early-childhood educators.
• The Liberals are also proposing to spend $20 million over five years to create a child-care secretariat to guide federal policy work, plus $15 million in ongoing spending for a similar Indigenous-focused body.
• The finance minister said the next federal budget — expected sometime in spring 2021 — will present a more concrete plan on how Ottawa will provide "affordable, accessible, inclusive and high-quality child care from coast to coast to coast."

New Taxes

• Minister Freeland also announced a plan to start levying digital sales taxes on consumers nationwide for the first time — a new system that could raise as much as $1 billion over the next five years.
  • Freeland said sales taxes will apply to all goods and services consumed in Canada — regardless of how they are supplied. It's consumers who will pay the tax, not the companies themselves.
• Another new sales tax will be applied to short-term rental accommodations booked in Canada on sites like Airbnb and VRBO.
  • With Freeland's new proposal, the GST and the HST will be collected on all stays and remitted by either the property owner or the companies that coordinate these digital bookings. It is estimated that this tax will increase federal revenues by $360 million over the next five years.
• The government is also proposing millions more dollars in funding for the Canada Revenue Agency (CRA) to continue its crackdown on tax avoidance.
  • The tax collector will receive $606 million over the next five years to fund new initiatives "targeting international tax evasion and aggressive tax avoidance."