Senators defy PM, delete escalator tax on booze from federal budget

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OTTAWA – The Senate has given final approval to the federal government’s budget — but with amendments that would delete the so-called escalator tax on booze.

The amended version of the budget implementation bill must now go back to the House of Commons.

If the Liberal majority rejects the changes — and Prime Minister Justin Trudeau has clearly signalled that it will — the legislation will be bounced back to senators, who will have to decide whether to insist on the changes or bow to the will of the elected chamber.

The amended bill passed in the upper house by a simple voice vote, in defiance of Trudeau’s insistence that unelected senators should defer to elected MPs on budgetary matters.

The amendments approved by the senators would delete provisions in the budget which would allow the government to automatically hike the federal excise tax on wine, beer and spirits every year by the rate of inflation.

However, senators made it clear they have a number of other concerns about the budget, including the proposed structure of the new infrastructure bank and the government’s ability to borrow money without parliamentary approval.

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