The Ford government has begun mailing out $200 rebate cheques, the Ministry of Finance said, with the affordability measure set to arrive in mailboxes “over the coming weeks.”
As part of the Fall Economic Statement in October, Finance Minister Peter Bethlenfalvy announced $200 cheques for all adults in the province who had completed tax returns for themselves and their children.
The policy is expected to cost the government roughly $3 billion and will see money sent to around 12.5 million adults and 2.5 million children.
“With Ontario families struggling due to the federal carbon tax, high interest rates and global economic uncertainty, our government is stepping up as part of our ongoing work to keep costs down and help families make ends meet,” said Bethlenfalvy.
The measure, however, has raised scrutiny about whether the government intends to capitalize on the good will by calling an early election.
The policy has been timed to coincide with an early writ drop, as early as February, leading opposition parties to call it a “gimmick.”
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Ontario NDP Leader Marit Stiles said the move was “cynical” when it was announced and claimed it was evidence the government “is out of ideas.” Bonnie Crombie, Ontario Liberal Leader, said the cheques were a “bribe.”
Even before the cheques were mailed out, however, some groups began calling on recipients to consider donating any funds they might not require.
“People who are able to give that money to a broader public good we’re asking you to consider donating it,” said Erin Brubacher with 200Dollars.ca.
Neil Heatherington, with the Daily Bread Food Bank, recently told Global News the charitable organization has spend nearly $30 million on food purchases to make up for a drop in donations and meet a rise in demand.
The Ford government says money for the policy was raised predominantly through changes made by the federal government to the capital gains tax, which Ontario Premier Doug Ford said he was “not in favour” of.
Over three years, Ontario expects capital gains tax changes to bring in $3.3 billion — the majority of which will be spent ahead of time on rebate cheques.
That revenue stream is in doubt amid the political instability in Ottawa.
The legislation that would be brought the measure into effect did not pass before parliament was prorogued in January when Prime Minister Justin Trudeau announced his impending resignation.
Conservative Leader Pierre Poilievre on Thursday promised to reverse the Liberal government’s controversial changes to capital gains taxes if he takes power in the next federal election.
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