The leader of the NDP, Jagmeet Singh, says that a government led by him will issue “Victoria Bonds” to raise the money needed to strengthen the Canadian economy through the commercial war with the United States.
The plan would see the federal government offer five and 10 -year -old bonds that Canadians can buy through a payroll deduction.
The NDP promises that none of the money collected through the plan will enter general income or programs expenses.
“The money of the victory bonds will be completely dedicated to getting Canadians to work on the construction of public infrastructure such as: roads, railroads, homes, water works, ports, which we will possess for generations,” the party said in a statement.
“We are in a commercial war, and like other wars, we will use victory bonds to support the commercial war effort.”
During both world wars, Canada sold victory bonds to individuals, companies and other organizations to raise the money needed to combat conflicts. The antecedent of the NDP explaining the program says that his victory bonds would be aimed at people.
The bonds sold during the world wars served as a loan for the federal government that could charge after a fixed period of five, 10 or 20 years.
He Ontario archives He says that during the five years of World War II, the Bond Victory program raised $ 12 billion for the war effort. That amount is significant when compared to the total fiscal income of the federal government of $ 562 million in the first year of the war.
The NDP plan
The PND leader said he expects the program to work because Canadians want to join the fight against US tariffs. That is despite the Canada savings bond program that ends in 2017 on the increase in administrative costs and the decrease in sales.
Singh said that Canadians have already begun to defend themselves by boycotting the goods and canceling their planned vacations south of the border.
“I want to recommend to Canadians to show that resilience, that challenge,” he said during a campaign stop in Ottawa on Thursday. “And then I want to give the Canadians another opportunity to do that, another opportunity to contribute.”
The party says that its Victoria Bonds program would pay an interest rate that is 0.25 percent higher than an average guaranteed investment certificate (GIC) of five years.
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The bonds issued today would pay compound interest of 3.5 percent, explains the bottom of the part. The dividend of those bonds would be tax free whenever they are maintained until the expiration.
The party says that $ 1 billion raised through the bond program would cost $ 10 million more than the same amount would cost if it was collected in the open market.
The estimated administrative costs of the program could be as high as $ 80 million.
