House unanimously adopts Liberals’ promised income tax cut
The House of Commons has unanimously approved the Liberals’ proposed income tax cut, fulfilling a promise made during the recent election campaign. The tax cut will reduce the lowest marginal tax rate by one percentage point, from 15% to 14%. This initiative aims to provide relief to Canadian taxpayers and stimulate economic growth.
The government introduced a “ways and means” motion to implement the tax changes, which was endorsed by all Members of Parliament on Thursday. This motion allows the government to initiate changes to the tax code before formal legislation is passed. However, a bill will still need to be approved to make the tax cut permanent.
Finance Minister François-Philippe Champagne presented legislation on Thursday morning to officially enshrine the tax cut into law. Prime Minister Mark Carney has committed to implementing the tax cut by Canada Day. The Liberals estimate that this tax reduction will save two-income families up to $840 annually by 2026.
Conservative Leader Pierre Poilievre expressed support for the tax cut, emphasizing that the Conservative Party prioritizes tax relief for Canadians. Despite backing the measure, Poilievre suggested that the tax cut could have been more substantial, proposing a reduction to 12.75%.
In addition to the income tax cut, the motion and impending legislation will eliminate the GST on homes priced under $1 million for first-time buyers and revoke the consumer carbon tax. Carney had already reduced the carbon tax for consumers through regulations in March. The forthcoming legislation will solidify the removal of the carbon tax, once a prominent Liberal climate policy.
The unanimous approval of the income tax cut reflects bipartisan support for tax relief and economic recovery efforts. The government’s commitment to implementing this measure demonstrates a proactive approach to addressing the financial challenges faced by Canadian households.