Pricey property owners pocketed big bucks from tax cuts promised to help low-income and working class
CBC
Manitoba's new education tax rebate was touted as a way to bring relief to working people, seniors and lower-income families, but a CBC analysis found that owners of Winnipeg's most expensive properties reaped the most benefit to the tune of millions in rebates.
The Progressive Conservative government's plan to reform school financing put a 25 per cent education tax rebate cheque into every homeowner's pocket last year, but the dollar amounts of those cheques for single dwellings and condominiums varied widely — from $8 for a tiny condo in Winnipeg's St. John's neighbourhood to $6,023 for a Tuxedo property — according to data obtained through access to information.
"Every dollar that is going to someone who owns a gigantic high-valued house is a dollar that we don't have to improve our health-care system, to improve our schools, and help our economy here in Manitoba grow in an equitable way," said University of Manitoba economist Jesse Hajer.
The stated goal of the education tax rebate program, which cost nearly $250 million when the province was in deficit, was to put money "back into the hands of the people who work so hard to get money in the first place, seniors living on fixed incomes … families struggling to make ends meet, small businesses, as well, that were victimized with more red tape and higher taxes," according to former premier Brian Pallister, who unveiled the plan on April 1, 2021, after making it a campaign promise.
"It's a fabrication to maintain that as putting more money into the pockets of Manitobans," said University of Manitoba economist Gregory Mason.
A CBC analysis of Winnipeg properties shows the top 10 per cent of education tax rebate recipients pocketed four times more cash than the bottom 10 per cent.
The top tier was rebated $17,750,239, which represents 18.5 per cent of total for homes and condos. The bottom tier got $4,310,223 or 4.5 per cent of the total.
Homeowners are not the only ones who got a rebate cheque. Commercial properties received a 10 per cent rebate last year and will get the same percentage this year.
Polo Park shopping centre received the largest cheque overall, totalling more than $1 million.
Other well-known Winnipeg buildings topped the list, including the three skyscrapers at Portage and Main.
This analysis is limited to Winnipeg properties and does not reflect rebates provincewide.
Hajer says he is not surprised owners of higher-priced properties got a larger chunk of the cash the government borrowed for the rebates.
"It's completely consistent with the way that tax cuts work. Those at the top are going to get a larger share than those in the middle and at the bottom," said Hajer.
Hajer says some people are doing very well right now and do not need the extra money, while others are struggling to feed their families.
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