Poilievre pledges $14B annual income tax cut, saving average worker $900 a year
Conservative Leader Pierre Poilievre has unveiled a bold plan to introduce an income tax cut that could potentially save the average Canadian worker about $900 a year if he is elected as prime minister. In a video posted on social media, Poilievre emphasized the importance of tax cuts in creating jobs and strengthening Canada’s economic resilience against external threats, particularly from the United States.
The proposed tax cut would involve reducing the rate of tax on the lowest tax bracket from 15 per cent to 12.75 per cent, resulting in an annual tax saving of approximately $900 for individuals and $1,800 for a two-income family. The Conservative Party estimates that the initial cost of this measure would amount to $7 billion per year for the first two years, eventually reaching $14 billion per year once fully implemented by 2027-28.
Poilievre outlined his government’s plan to offset the cost of the tax cut by eliminating government waste and reducing the federal bureaucracy. He also announced a dollar-for-dollar law that would require ministers to cut spending by a dollar before allocating any additional funds.
In response to Poilievre’s proposal, Liberal Leader Mark Carney pledged to implement a more modest tax cut by reducing the bottom tax rate by one per cent, which would save taxpayers approximately $400 a year for individuals and $800 for dual-income families. Carney emphasized his commitment to maintaining existing programs such as pharmacare, child care, and dental care, and stated that his government would focus on reducing the growth of government spending and improving program efficiencies to fund the tax cut.
However, Carney criticized Poilievre’s funding strategy, warning that it could lead to the elimination of essential programs. He highlighted the potential impact on federal programs like dental care, pharmacare, and child care, which currently cost the government about $11.4 billion annually according to the Parliamentary Budget Office.
Meanwhile, NDP Leader Jagmeet Singh criticized both the Conservative and Liberal tax cut proposals, labeling them as “tax cuts for millionaires.” Singh expressed concerns about the regressive nature of the tax cuts, which would benefit higher income earners disproportionately. He hinted at the NDP’s upcoming tax plan, which may include reducing the GST on essential items like internet access, cell phone bills, and heating costs to provide relief for working-class Canadians.
As the federal election approaches, the debate over tax policy and government spending is likely to intensify. Canadians will have to weigh the competing proposals from the major political parties and decide which approach aligns best with their values and priorities for the country’s economic future.
