Carney and Poilievre promise tax cuts on Day 1 of election campaign
Canada’s federal election campaign is off to a strong start, with party leaders focusing on economic issues and promising financial relief for Canadians impacted by U.S. President Donald Trump’s trade war. Liberal Leader Mark Carney, after meeting with Gov. Gen. Mary Simon, pledged a “middle-class tax cut” by reducing the lowest income tax bracket by one percentage point. The Liberal Party estimates that more than 22 million Canadians would benefit from this tax cut, saving two-income families up to $825 annually.
On the other hand, Conservative Leader Pierre Poilievre reiterated his commitment to tax cuts on work, investment, energy, and homebuilding. He also promised to repeal the carbon tax entirely, in contrast to Carney’s directive that removed the consumer carbon tax but left the legislation intact. Poilievre aims to establish a tax reform task force to design a tax cut that would lower taxes across various sectors.
The looming threat of additional tariffs from the United States has pushed these leaders to prioritize economic policies. Trump recently imposed 25% tariffs on Canadian steel and aluminum, prompting Canada to retaliate with tariffs on American goods. NDP Leader Jagmeet Singh criticized Trump’s actions as an “illegal trade war” and emphasized the need for a strong stance against such threats.
In terms of managing finances, Carney’s campaign has proposed balancing operational spending over the next three years while maintaining transfers to individuals and provinces. Poilievre, on the other hand, plans to cut funding for various programs and reduce the size of the public service. The NDP has proposed eliminating the GST on essential items and implementing an excess profit tax on large corporations to fund their initiatives.
As the election campaign progresses, each party’s economic policies and financial management strategies will be closely scrutinized by Canadians. Stay tuned for more updates on how these leaders plan to navigate the challenging economic landscape and provide relief to those affected by external trade pressures.
