PCQ FINANCIAL FRAMEWORK

LOWER TAXES AND LOWER DEBT

For immediate release

September 11th, 2018

QUEBEC - The leader of the Conservative Party of Québec and candidate in Chauveau Adrien Pouliot today unveiled today the financial framework of the Party.

"A Conservative Party government in Québec will reduce the tax burden on individuals so that a middle-class family could see its tax burden cut by up to 36%. The corporate tax burden will be reduced by 40%. And despite these reductions, budgets will be balanced, and Quebec's gross debt will decline”, summarized Mr. Pouliot, who added:

"Tax cuts should have a trickle-down effect on the economy, so based on the model of the Québec Taxation Review Committee, we expect to be able to declare a prosperity dividend in 2021-2022 and 2022-2023 totaling $ 2.5 billion, representing an additional reduction in the tax burden on middle-class individuals of up to 30%".

COMMITMENTS

Major financial commitments of the Party are as follows:

Decrease in personal income taxes

Decrease in overall tax burden of corporations

Elimination of the Quebec carbon tax

Elimination of the QST on used goods

Increased use of private sector in health care for easier access

Decrease in business subsidies

Abolition of the Green Fund

Allow Hydro-Quebec to sell some of its huge surpluses to the cryptography and data centers industries

Liquidation of the assets of Investissement Québec and the Economic Development Fund - the proceeds will be deposited in the Generations Fund or applied to reduce the gross debt.

IMPACT ON PUBLIC FINANCES

The impacts of the measures of the PCQ on public finances are as follows:

Government revenues will increase at half the rate and expenses will increase 40% less quickly than currently forecast by the ministère des Finances

The tax cut for individuals total $ 12.4 billion

The reduction in the corporate tax burden totals $ 12.7 billion

Surplus (before contribution to the Generations Fund) of $ 6.4 billion

Balanced or surplus budgets after contribution to the Generations Fund

125% increase in the Generations Fund from $ 12.8 billion (2018) to $ 28.9 billion (2023)

Decrease in gross debt from $ 201.1 billion (2018) to $ 197.6 billion (2023)

A “safety cushion” (stabilization reserve) of $ 4.7 billion in 2023

Trickle-Down “PCQ” multiplier effect of lower taxes calculated in accordance with the Québec Taxation Review Committee formula: Québec’s GDP grows $ 12.5 billion more vs the current government projections ⁽¹⁾

Prosperity Dividend further reducing taxes totalling $ 2.5 billion in 2022 and 2023

See “Final Report of the Québec Taxation Review Committee”, volume 3, table 7, numbered page 67. (http://www.groupes.finances.gouv.qc.ca/examenfiscalite/uploads/media/Volume3CEFQ_ReportENG.pdf)

Mr. Pouliot summarized the plan of the PCQ as follows: " It is easy to spend other people's money. We have only to look at the billions of dollars of electoral promises being showered upon Quebecers in the last two weeks. The Conservative Party of Québec promises exactly the opposite: less taxes, less spending, balanced budgets, 125% increase of the Generations Fund, reduction of gross debt below $ 200G, better services through private sector and competition and, as a bonus, a prosperity dividend further reducing taxes if the economy continues to perform well. All of this is possible under a Conservative Party of Québec government that manages hard-earned taxpayers' money cautiously and sparingly."

CAQ VS PCQ

The following table highlights the differences between the financial frameworks of the CAQ and PCQ (FY2020 -2023) (in billions of $).

The financial framework of the PCQ has been prepared in accordance with the guidelines of Public Policy Committee of the Association des économistes québécois. It is available here (as well as the graphs below) (in French only) : https://www.particonservateurquebec.org/financial_frame_2018

A video is available here (in French only): https://www.youtube.com/watch?v=Q23fknuGr6k&feature=youtu.be

PDF version

GRAPHICS

Budgetary revenue

Budgetary expenditure

Surplus

Gross debt

Prosperity dividend