Federal Budget 2023 | Page 2 | General financial discussion | Discussion forum

Automatic tax filing to help low-income Canadians:

The federal government is looking to help the estimated 12% of Canadians who don’t currently file tax returns take advantage of benefits they might currently be missing out on.

Starting in 2023, the Canada Revenue Agency is expected to pilot a new “automatic filing system” to help vulnerable Canadians who don’t regularly file taxes receive the benefits they’re entitled to receive.

The government also intends to expand its existing auto-file program, File My Return, which sees low-income Canadians file returns by answering a few questions over the phone.

The federal government plans to nearly triple the number of Canadians eligible for the auto-file program to two million by 2025.

smso, not saying it's not so but I'd need more than media reports, I'd need data, lots of solid data, to agree that "it is clear" that what you allege is happening re "taking advantage".

I'll admit my bias, my data pretty much comes from my wife, she does all the food buying and preparation in our home, and she still regularly expresses surprise at media coverage and marvels at how cheaply we can eat bountiful amounts of healthy food in this country. I've no clue, aside from whenever we've travelled it seems to me, compared, she's right.

Bill said
smso, not saying it's not so but I'd need more than media reports, I'd need data, lots of solid data, to agree that "it is clear" that what you allege is happening re "taking advantage".

I'll admit my bias, my data pretty much comes from my wife, she does all the food buying and preparation in our home, and she still regularly expresses surprise at media coverage and marvels at how cheaply we can eat bountiful amounts of healthy food in this country. I've no clue, aside from whenever we've travelled it seems to me, compared, she's right.  

Yes there are still "loss leader" items regularly on the flyers, just have to adjust the weekly buying habit.

On the other hand, rather than listening to media, its from Galen's mouth. He said his stores keeps a profit margin of "merely" 4%.. Last year a $100 food cost makes $4 profit, this year a $130 food cost makes $5.20 profit. There is the extra dollar made, meaning 100% of the food inflation is passed on to the consumers, PLUS more profit to the grocery chain at the same time. Also a pack of chicken breast at reg price definitely has more than 4% profit built in (ok, that may be influenced by the media using chicken breast as an examply) 🙂

savemoresaveoften said
....from Galen's mouth. He said his stores keeps a profit margin of "merely" 4%.. Last year a $100 food cost makes $4 profit, this year a $130 food cost makes $5.20 profit. There is the extra dollar made, meaning 100% of the food inflation is passed on to the consumers, PLUS more profit to the grocery chain at the same time. 

Basically no one gets this or calls anyone out on this. It's easy to understand if you've moved around in different real estate markets. I've sold houses in inexpensive markets where I paid 6% to the real estate agent and I've sold houses in other markets where I paid 1% because the variation in the price of the product being sold. Profit margin remaining the same is a foolish leg to stand on if you are defending profiteering during times of inflation.

Galen gets my blood boiling. That guy is such a greedy and heartless person. I used to know a family who dealt with him on his Hawaiian vacations and he'd always pressure them to give him their US dollars for his Canadian dollars and they said he always underestimated the exchange rate they'd get having to then go to their bank themself to exchange it back to USD. I also know some people who were part of a waive of layoffs he conducted because when he took over the reigns he laid off everyone over 40 and openly messaged it was because they were too old to understand his new vision. Too bad that rule doesn't now apply to him. I could say more, but I don't want to get too specific.

cgouimet said

Obviously, they don't. It's a GST Credit labelled as Grocery Rebate because that's all the whining nowadays. And they don't care where it's spent except that since it's income based, the odds are are relatively high it won't be used frivolously. It it were a universal to everyone credit as some here prefer, then a lot of it would end up where it's not really needed and be inflationary. The Feds are less willing to throw vote buying $ around than the provinces ...  

I completely disagree with your view. I know of plenty of people who appear better off on paper because they budget and are fiscally and behaviorally disciplined, while others who are financially worse off waste their money for various reasons. I used to buy groceries for a single mother in my neighborhood just because people used to do those kind of things. Then after many years of us helping her out, she told my wife that she appreciated what we were doing for her, but couldn't we buy her some fun things sometimes or just give her cash so she could buy some fun things.

As well, how is people getting free money to spend on anything not inflationary? That's just not logically sound. Even if money is all spent on necessities which actually are necessities, it will still generate more inflation. The bottom line is more money means more competition for the same amount of goods.

Making $5.20 profit on $130 is the same 4%, so no profiteering off inflation in that example.

Unpayable debt becomes payable after periods of high inflation, I agree that seems to be the strategy.

mordko said

The Feds certainly are throwing around tens of billions of taxpayer dollars at the time there aren’t any $s to spend. Thats inflationary. By making our debt burden unsustainable, we are limiting options; inflation will sooner or later become the only “solution”.

Inflation is caused by high demand combined with supply shortages. Given that many supply problems are endemic and can’t be resolved quickly (or are getting worse), it can only be dealt with by limiting demand. And that has to be done by limiting purchasing ability of poorer Canadians. Wealthy Canadians will continue buying the same food basket regardless of prices. By supporting poorer Canadians and getting deeper into debt the government is ensuring that the inflation pain will go on for longer and hurt more when the crisis comes.  

Well that's the intent and the hope.

Yes any kind of stimulus is inflationary but there are people who really need help. So, limiting the stimulus to to some sort of low income criteria should minimize the damage.

As far as whether people use it properly, telling people in these Me-Me-My-Freedom times, that's a whole different ballgame. I was at Loblaws recently and was near a couple in their mid 30's not appearing to be anywhere wealthy by any stretch. In fact, he was wearing pyjamas and sandals, and she was sporting hair curlers. They were walking through the aisles complaining about what they could and couldn't add their cart already overflowing with chip, peanuts, pickles, cookies etc and not No Name stuff either ...

COIN said
This will sound bad but I heard at least one of the talking heads on TV say instead of a grocery rebate which I think is cash the government should instead give vouchers which are redeemable only at grocery stores. Yes, yes, I know this sounds terrible.  

Food Stamps!