Canadians concerned about rising government deficits, believe middle-class will foot the bill: poll

Canadians are concerned about rising government deficits, with a majority believing that middle-class taxpayers will eventually have to foot the bill for all the public overspending, according to a new Postmedia-Leger poll.

Seventy-one per cent of respondents said they were concerned that both Ottawa and several provincial governments are badly outspending their means at a time when U.S. trade tensions and other threats have weakened Canada’s wider fiscal position. By comparison, 19 per cent of respondents said they were not concerned and 10 per cent said they didn’t know.

Under Prime Minister Mark Carney, the federal government is projecting a $65.4 billion deficit this year, and will continue running budget shortfalls until at least 2029-30, when it expects to table a $56.6 billion deficit. Alberta Premier Danielle Smith, meanwhile, is projecting a $9.4 billion deficit this year, and Ontario Premier Doug Ford expects a $7.8 billion shortfall. The numbers are similar in B.C. ($10.2 billion) and Quebec ($7.1 billion).

Recent deficits have added to existing concerns about Canada’s overall debt levels — a problem that spans government, household and corporate debt — at a time when economic growth has been flat.

With governments increasingly in the red, 29 per cent of respondents to the Leger poll now expect that middle-class taxpayers will ultimately be on the hook to cover government largesse. Another 25 per cent said “future generations of taxpayers” will take the brunt of costs, while 24 per cent believe it will be the “richest 10 per cent” of Canadians, and 22 per cent believe corporations will have to shoulder the burden.

Among respondents, those in Alberta (37 per cent) and Atlantic Canada (37 per cent) were the most likely to believe that the middle class will be responsible for paying down today’s government debts. Manitoba (21 per cent), Saskatchewan (21 per cent) and B.C. (22 per cent) were the least likely to say the middle class will pay, with B.C. respondents most likely to say big corporations would have to fill the gap.

Conservative Party of Canada supporters were the most likely to say that debt costs would fall to the middle class, at 34 per cent, while federal Liberals were the least likely, at 25 per cent.

So far, provincial governments and Ottawa have tried to avoid appearing to put the burden on the middle or lower classes. Ottawa recently cut taxes for the lowest income earners by one per cent — a move that will cost the government an expected $27 billion in foregone revenue over five years. Alberta has also cut taxes for people earning less than $60,000.

Asked how governments should look to pay down debts or reduce costs, respondents were most likely to say they should either cut program spending (30 per cent) or trim the number of government employees (30 per cent). “Freezing or drastically reducing” pay increases for public sector workers was the next favoured solution, at 26 per cent, while the least favoured was raising taxes on businesses and individuals, which had just 14 per cent support.

CPC supporters were 41 per cent in support of trimming the number of government workers, while Liberal support was much lower at 24 per cent. Bloc Québécois supporters were 19 per cent in favour of cutting the public service, and NDP supporters were 18 per cent in favour.

The Leger poll also surveyed people on their views toward forcing government employees to return to the office at least four days a week. Sixty-five per cent of respondents supported the move, while 24 per cent opposed and 11 per cent didn’t know.

Of those respondents, 66 per cent said they believe the office is the most productive environment for government workers, while 17 per cent said “at home” and another 17 per cent said they didn’t know. CPC supporters were most likely to consider the office as the most productive workplace, at 77 per cent, while NDP voters were the least likely, at 43 per cent.

Last month, the federal government started mandating public sector employees to return to the office at least four days a week, starting in July of this year.

The online Leger poll surveyed 1,627 Canadians between Feb. 27 and March 2. A margin of error cannot be determined in an online panel survey, but for comparison purposes a probability sample would have a margin of error of plus or minus 2.43 per cent, 19 times out of 20.

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