Canadians will pay higher taxes on alcohol and cigarettes as part of the new federal budget.
Finance Minister Bill Morneau says the excise duty rate on booze will go up 2 percent, and by 50 cents for a carton of smokes.
The Liberals are also cutting the tax credit for commuters who buy a transit pass.
Employment insurance premiums will rise to $1.68 per every $100 of insurable earnings, up from $1.63, and the 71 year old Canada Savings Bond program will be phased out.
On the spending side, 11 billion dollars has been earmarked for affordable housing over 10 years, and 7 billion will be spent on families over the next decade including 40-thousand new subsidized daycare spaces by 2019.
The new budget has a 28 billion dollar deficit for 2017-18.
Mel Arnold, Conservative Member of Parliament for North Okanagan-Shuswap, is voicing concern about what he calls the massive deficit the budget carries for the second consecutive year.
“I am very concerned of the government’s fiscal policies that have added to the debt burden that Canadians will be paying off for years to come,” says Arnold. “Trudeau’s promise of limiting deficits to $10 billion a year has been broken a second time now and it is Canadians who will pay through higher taxes.”
Arnold is also dismayed the financial plan increased taxes on certain goods and eliminated the public transit tax credit that allowed Canadians to claim 15% of the cost of transit passes.
“At a time when Justin Trudeau is making life more expensive, he could have offered lower taxes and a job creation plan that actually works,” adds MP Arnold. “Instead, Canadians are getting nickel-and-dimed by this Prime Minister so he can continue to fund these deficits.”