We’ve pointed out many times that labour unions, public and private, put a lot of time, effort and money into getting Justin Trudeau elected so no one should be surprised that big labour is one of the big winners in yesterday’s budget.
We’ve already shown how the Trudeau government is removing transparency of the kind that would have allowed Quebec construction workers to find out that their union spent $1M dollars of dues money to rebuild a strip club for the Hells Angels.
That’s gone now so union bosses can spend as they please and block any oversight all while getting special tax treatment from the federal government. And now, they’re going to get more special tax treatment as Trudeau’s Liberals bring back tax breaks for investing in a labour sponsored venture capital fund.
That’s right. Invest in a union run fund and you can get a 15% tax break!
These funds were popular in the ‘90s and the idea of a union backed fund that invests in jobs and creates business did sound nice but the investments never really worked out.
Both provincial and federal governments gave tax breaks to encourage contributions. These funds were often so bad, the tax break was the only reason to do it.
Which is why the Conservatives dropped the tax break in 2013 while in Ontario under Liberal Premier Dalton McGuinty, they dropped it years earlier.
People invest to make money, not lose it. The government was subsidizing bad investments so the tax breaks were slowly done away with... until this new budget that is.
Tax relief of $815M over five years, or as progressives would say, the federal treasury will be out $815M over five years to subsidize bad investments. And they were bad.
This is a payoff to unions and union bosses for their political support because none of this makes sense for taxpayers or investors.
It only makes sense for the Liberals who use budgets to reward friends and backers.