Particle.news
Download on the App Store

Liberals Reject Conservative Push To Halt Tax Withholding on GM Severance

Ottawa says severance is taxed at source under long-standing law, warning a carve-out would weaken a vital fiscal tool.

Overview

  • Conservative Leader Pierre Poilievre, joined by MPs Kyle Seeback and Arpan Khanna, asked Sunday for a temporary exemption on withholding taxes for roughly 1,200 laid-off CAMI workers offered about six months’ severance.
  • Finance Minister François-Philippe Champagne’s office declined the request Monday, with spokesperson John Fragos calling the proposal bad policy and “political malpractice.”
  • Lump-sum severance is paid with tax withheld at source, with Ontario rates cited at about 10% up to $5,000 and 30% over $15,000, and the final tax reconciled at filing time.
  • Conservatives argue laid-off workers need immediate cash for essentials, and MP Arpan Khanna says some pay stubs show $60,000 gross reduced to $24,000 after withholding.
  • The government points to alternative supports and a new automotive strategy, with Jobs Minister Patty Hajdu citing faster access to last pay, no EI waiting period, and extra weeks of help for long‑tenured workers.