Pierre Poilievre's bespoke tax proposal may be a poor fit

The Globe editorial criticizes Pierre Poilievre's request to reduce withholding tax on severance for about 1,200 laid-off GM CAMI workers and notes the finance minister's office rejected the request.

Pierre Poilievre asked the finance minister to reduce the withholding tax on severance payments for about 1,200 workers laid off from GM's CAMI plant in Ingersoll, Ontario. The Globe editorial argues that offering special tax treatment to a single group would create unfairness and administrative problems. The finance minister's office rejected the Conservatives' request, and the editorial urges consideration of broader rule changes instead of bespoke measures. Key facts: - Mr. Poilievre sent a letter asking Finance Minister François-Philippe Champagne to lower the withholding tax on lump-sum severance for the GM workers. - The finance ministry rejected the request, as reported in the editorial. - The article notes lump-sum severance is generally subject to withholding between 5% and 30%, with any over-withholding typically refunded when annual taxes are filed. - An MP for the area said his office saw paystubs showing $60,000 in severance reduced to $24,000 after withholding; a tax professional cited in the piece said a 60% withholding rate would be unusual. - Ontario NDP leader Marit Stiles and others have called for different tax treatment for workers affected by tariff-related job losses, and the editorial reports the NDP sought elimination of taxation on those severance payments. - The editorial warns that targeted tax relief could invite lobbying, create unequal treatment among workers, and leave some recipients owing tax later if withholding is reduced. Summary: The editorial frames the request as an example of a bespoke tax change that could favour one group over others and complicate administration. It notes possible downsides for workers if reduced withholding leads to unexpected tax bills and recommends addressing any wider withholding issues through general rule changes rather than one-off measures. Undetermined at this time.