Chrystia Freeland promises tax cut, plan for cheaper groceries if elected Liberal leader
Liberal leadership candidate Chrystia Freeland has unveiled a comprehensive plan aimed at addressing the financial struggles facing many Canadians. The former finance minister’s proposal includes a series of initiatives designed to reduce the cost of living, such as tax cuts, measures to lower grocery prices, and efforts to tackle credit card debt.
One of the key components of Freeland’s plan is a proposed cut to the second income tax bracket rate, from 20.5 per cent to 19 per cent. This move is expected to save approximately 11 million Canadians around $550 per year, or $1,100 for a couple. Additionally, Freeland has pledged to cap profit margins on essential grocery items like eggs, milk, fruits, vegetables, canned goods, and baby formula in order to lower prices for consumers. She has also promised to outlaw “shrinkflation,” a practice where companies reduce the size of a product without reducing the price.
In the housing market, Freeland has proposed eliminating the GST on new homes valued up to $1.5 million for first-time buyers. This initiative aims to make home ownership more accessible for Canadians. Furthermore, Freeland has committed to capping credit card interest rates at 15 per cent, with a long-term goal of reducing the cap to 10 per cent. She has also outlined plans to create 100,000 new $10-a-day child-care spots by mandating the inclusion of daycare centers in new or renovated federal office buildings.
Freeland’s affordability plan comes amidst a competitive Liberal leadership race, with contenders like former central banker Mark Carney and former government House leader Karina Gould proposing their own economic policies. Carney has hinted at a potential middle-class tax cut, while Gould has suggested temporarily lowering the GST to four per cent for a year and offering interest-free loans to first-time homebuyers.
Freeland’s plan reflects her criticism of Prime Minister Justin Trudeau’s affordability measures, which she characterized as “costly political gimmicks.” Her proposals are aimed at addressing the pressing financial concerns facing Canadians and ensuring greater economic security for all. As the Liberal leadership race continues to unfold, it remains to be seen how these policy proposals will shape the future of the party and the country.
