The school tax increases by a maximum of 3%

While the prime minister puts the chance of Quebec sliding into recession at 50%, his government has decided to limit school tax hikes to 3%.

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With the cost of living rising, a recession is looming. The US Federal Reserve raised interest rates by 0.75% yesterday.

François Legault called the US reserve measure “good news” for slowing inflation and rising prices for consumers.

But he also conceded during a visit to Baie-Comeau yesterday that the likelihood of a recession is growing sharply.

“Obviously, corporate investment is becoming less attractive as interest rates rise. There is a risk that the economy will slow down,” said the prime minister. “I think we’re maybe 50-50 that there’s a recession. »

Avoid a price shock

Shortly before the elections, their finance minister, Eric Girard, announced that he would limit the increase in school taxes from 2% to 3% in order to avoid a price shock.

School service centers are also severely affected by inflation. They even forecast a 17% increase in school tax bills.

These increases are typically paid for by taxpayers to allow the centers to meet additional expenses related to school performance and pay adjustments.

For example, the owner of a $350,000 home would have suffered an increase of about $60. By intervening, that increase will be $10, he says.

– Hear Alexandre Moranville-Ouellet on Mario Dumont’s mic on QUB radio:

The centers’ shortfall is covered by annual financial support of US$173 million from the government.

Not campaign

“Homeowners face rising inflation like everyone else, but they also face a multiplier, which is rising interest rates. There are also a lot of people who have adjustable rate mortgages,” the finance minister added, arguing that this is not an optional measure.

“We had to announce that today [hier]. The school tax rate is published today [hier]. Tax assessments will be sent out in July. »

After the $500 checks, this is an additional measure to counter the rise in the cost of living.

Therefore, inflation is forcing Quebec to readjust and use its reserves to help families and maintain services.

Unlike the prime minister, the finance minister minimized the risk of recession yesterday.

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