Poilievre, Singh target low-income Canadians with suite of tax cuts
Both the New Democrats and Conservatives have unveiled their tax-cutting promises aimed at providing relief to lower-income Canadians. Conservative Leader Pierre Poilievre’s campaign is focusing on working seniors by increasing the amount they can earn before paying taxes by $10,000. This means working seniors with an annual income under $42,000 can now earn up to $34,000 without paying taxes, saving them up to $1,300 annually. The Conservative plan does not provide a costing for the measure but emphasizes the importance of protecting seniors’ savings.
In addition to this, the Conservatives have also announced that seniors can continue contributing to their RRSPs until the age of 73, as opposed to the current age limit of 71. Poilievre has committed to keeping the retirement age at 65, contrary to the previously scheduled increase to 67 in 2023 that was canceled by former Prime Minister Justin Trudeau.
On the other hand, the NDP is focusing on helping working families by raising the basic personal amount threshold from $16,129 to $19,500. This adjustment will apply to individuals earning up to $177,882, saving them $505 annually. For those earning $253,414 or more, the basic personal amount will be reduced to $13,500. The NDP estimates that these changes will cost the treasury $10.4 billion.
Furthermore, the NDP is promising to eliminate the GST on essentials such as energy, internet, and mobile phone bills, as well as exempting children’s clothing and footwear, and prepared meals bought from grocery stores from the GST. This move is expected to save an average family of four $448 annually at a cost of $4.5 billion per year. The NDP also plans to double the Canada Disability Benefit and increase the Guaranteed Income Supplement at a combined cost of $3 billion to $4 billion.
In total, the NDP’s tax measures announced on Wednesday would cost around $19 billion. The party plans to fund these initiatives by cracking down on non-compliant corporations and retaining the capital gains tax increase introduced by the Trudeau government. Both Poilievre and Liberal Leader Mark Carney have pledged to scrap the proposed capital gains tax increase.
Additionally, the Green Party of Canada has unveiled its own tax-cutting proposal by raising the basic personal amount to $40,000. This move is expected to benefit 78% of taxpayers earning less than $100,000, providing them with a tax break of up to $3,675. The party estimates that this measure will cost $47 billion and will be funded by raising corporate taxes and cutting corporate subsidies.
Overall, these tax-cutting promises from the political parties aim to provide relief to lower-income Canadians and make the tax system more equitable for all citizens.
