February Poll: Advisors Not Happy with New Groceries Essentials Benefit

Finance Canada has not garnered favor with the tax and accounting community in replacing the GST/HST credit with the new Canada Groceries Essentials Benefit (CGEB):  70% answered no when asked if they agreed with the launch of this credit.  Some were even quite angry about it.  Here are the reasons why:

June Chisholm was succinct:  More spending, more taxes!  This is nuts and has to stop now!

Beverly Prescott is skeptical:  Anytime the government is involved it costs taxpayers millions to oversee the program!  How about they try just try to get inflation down and people could afford to feed their families.  Income tax breaks would be a welcome relief! 

So is Rachel:  This is a bandaid solution to a systemic issue. We need to tax billionaires at 1% and close loopholes so they have to pay it. We need to solve price gouging at the grocery stores. We need 100% free healthcare, affordable housing, and increase the minimum wage to a liveable wage.

Gaetan Ladouceur gets political:  This is simply a scam to get votes for when the Federal Elections happen in the spring.    When including both groceries and restaurant meals, the overall food inflation rate was 6.2% in Canada for the month of December, 2025.  And of course, the Liberals will still blame the US for our high grocery prices and gaslight the Canadians that this meager ‘subsidy’ will solve their problem, when in fact less that 30% of the Canadian population will benefit from it.  Killing the ‘hidden’ Industrial Carbon Tax is a much better option for us all.

Clint Wormsbecker agrees.  Another vote buying venture from the Liberals.  The bulk of Canada’s inflation lies directly attributable to Liberal policies.  Instead of cleaning up these policies, they generously want to pay out another 11 billion dollars (over 5 years) that will need to be borrowed and more interest paid.  Pathetic?  You bet!

Brian McIntyre worries about the middle class:   Another liberal “spend their way out of trouble with the masses” solution. More wealth redistribution from the middle class to the lower class (love to see the make up of the 12 million beneficiaries) without addressing the causes THAT THEY INFLICTED on our economy.

Pat Gamborg is frustrated: This barely addresses anything. Seniors just got a whopping big increase in their CPP/ OAS/GIS income.  I know of one couple who, in December received a grand total of all of these pensions of $3337.78.  January 2026 was $3371.88.  That’s a great big fat 0.0102% increase.  Rent goes up 5%, power goes up 10%,  groceries go up 5%.  but, not to worry, these folks might get an extra couple of hundred dollars spread out over the year to help out.  If the politicians had to live on real world income and expenses, maybe they might have some understanding of real life.  I can just imagine how tough it is for a family with a few growing teenagers.

Yet, Gale L Anson has an interesting take: Yes, groceries are expensive BUT most people do not know how to shop or COOK. What they need is information about how to buy and how to cook.

Maria Cheng thinks longer term in her response:  This benefit just gives a little relief to the low income group.  However, the entire tax system need to be reformed.

Carla wants more accountability:  This just makes it all worse - instead of being “heroes” to the the liberals voters (no one I know thankfully) they need to just reduce everything that causing the grocery prices to rise.  Instead of giving speeches - Carney needs to actually DO something and negotiate with our biggest partner down below instead of angering them.  Carney/Liberals/Trudeau are ruining this country and as per liberal laws - we will be the ones paying for it out west.

Bruce offers this suggestion as relief for seniors:  Both GST-credit and GIS are income tested. GIS may be a more appropriate instrument to use for income support objectives.

For the “In Favor” Side:

Terry McBride is amongst those in the minority as he says Yes – in favor. An efficient method of income redistribution that appears to be well-targeted across all age groups.

Chanan Cheema laments the size of the initiative:  This is a small help to the lower income people of Canada.

Maxy C'K Ojukwu agrees: Any help the Government can offer to lower income citizens is a great way to build a just and equitable society where less fortunate members of the society are not left behind.

Anni Markmann agrees.   This is the best way and cheapest way to help lower and middle income Canadians fairly quickly; it is not a new program, just adding to an existing program that is focused on those with lower income. Income tax breaks do not help the lower 1/3 of Canadians.

But here is a contrary view from Frances DeDona:  The government should not be supplementing groceries, it should be dealing with the gouging from the grocery retailers, with Weston making record profits, taking advantage of all people, no matter what income level they are at.  This has been going on exponentially since COVID in 2020. 

Lori Losowy wonders:  Where will the funding for this come from? Every net dollar of GST/HST revenue now goes towards paying the interest on the federal debt. Just the interest, none towards actually paying down the debt, because the debt continues to grow and is not being paid down. So, technically, it can’t even be said that the federal gov’t is trying to bribe us with our own money, because it’ll have to be paid for with borrowed money.

Ann-Margaret Laurin’s says “elbows up”:   We can have our reservations with the federal government offering a grocery rebate.  Lately, I have shifted my position as a Canadian, and I would like our government to take care of Canadians first.  Additionally, our government should be more accountable to how much tax dollars stays in Canada vs leaving Canada. . .I have a “Canadians first” approach and fair and equal opportunity for all Canadians;  CCB, HST, OTB and add groceries to the list & it should not be prorated.

And the final word goes to Robert Litschel: The federal government should get out of the business of micromanaging the daily lives of its citizens.  If they really want people to have more money for groceries and such, they should reduce the tax burden by eliminating many of the taxes they impose (carbon tax comes to mind).  In order to do this reduction effectively, they need to rein in spending as they do not have a revenue problem; it is a spending problem.  A benefit like this increases the problem.

Thanks for participating!  This month we ask your opinion on this publication:

Do you enjoy reading breaking tax and financial news in Knowledge Report?

Please tell us why/why not?

Real Tax News – Season 2 has started!  Give it a listen:  It’s About Your Taxes and Retirement Readiness!