The conservative leader Pierre Poilievre says that he will present a reduction in income taxes that will save the average worker around $ 900 a year if he becomes prime minister.
“We know that tax cuts create jobs and that will help build Canada’s economic strength against US threats,” Pailievre said in a video on social networks by launching the measure.
The conservatives say that they will reduce the tax rate on the lower tax level than 15 percent to 12.75 percent, which will reduce the taxes that people will pay by approximately $ 900 per year, or $ 1,800 per family of two income.
According to the party, the measure will cost $ 7 billion a year during the first two years. When the measure is completely implemented in 2027-28, the cut will cost $ 14 billion a year.
In the video that launches the measure, the conservative leader said that his government would pay for this eliminating government waste and cutting the federal bureaucracy.
“Because we are reducing the lowest group, each Canadian who pays the Income Tax will pay less,” said Poilievre in Brampton, Ontario, on Monday. “Modest income people will pay less in relative terms and as a part of their general income.”
Pailievre said that the details of how tax reduction will be paid will be provided later in the “expensive platform” of conservatives.
The conservative leader said that his government will bring a dollar law per dollar that requires ministers to reduce spending for a dollar before spending a dollar.
Conservatives will cut programs: Carney
The Poilievre measure, which represents a cut of approximately 15 percent in the amount of taxes paid at the lowest tax level, occurs one day after liberal leader Mark Carney compromised to reduce the bottom rate by one percent, a 6.6 percent cut to the amount of taxes paid at the lowest tax level.
The tax cut proposed by Carney would save someone to win at least $ 57,375, the lowest tax level, a little more than $ 400 per year, or around $ 800 for a double income family. The first $ 16,129 that a person earns is exempt from taxes.
The reduction of liberal taxes proposed by Carney would cost $ 5.9 billion, according to the calculator Ready Reckoner of the parliamentary budget office.
The liberal leader says he will not pay for his income tax cut by reducing transfers to provinces or individuals, or eliminating programs such as Pharmacare, child care and dental care. Instead, he said that he will reduce the growth of government spending every year and review efficiency programs.
Carney said that government spending currently increases by approximately nine percent per year, and that it will reduce that, which, according to him, will significantly alter the “fiscal arithmetic” of the country. The liberal leader says that these cuts will be possible by focusing on the results of the programs and ensuring that the results reflect “the best value for money.”
Carney criticized the dollar plan per dollar from Pailievre to finance the reduction of taxes on conservative income by suggesting that it will lead to the elimination of child care, pharmacáutics and dental care.
“And even when cutting those programs, which has pled
Pailievre has not specifically said if it would maintain or reduce dental, pharmacutic and child care programs, which when combined cost the federal government around $ 11.4 billion, according to the Parliamentary Budget Office (PBO).
The PBO says that by 2027-28, the same year in which the reduction of income taxes of 2.25 percent of the conservatives at the lowest tax level would be completely implemented, the The cost of the dental program will be $ 1.75 billion and the cost of Pharmacare Will be around $ 400 million.
Using the year 2025-26, the last date on which PBO uses in its calculations, the cost of the child care plan There will be around $ 9.2 billion.
Millionaire Tax Reduction Plan Singh Slams’
The leader of the NDP, Jagmeet Singh, criticized the liberal and conservative proposals, calling them “tax cuts for millionaires.”
“Both plans for tax cuts for millionaires are exactly that, they are plans that help Millionaires more than help families,” Singh said in Montreal.
The NDP leader said that the problem with the reduction of income taxes proposed is that it reduces the tax paid on all income in the first tax winner, which gives someone to win $ 57,375 the same tax reduction that gives someone much more.
“Is it reasonable to propose a measure that gives the same amount of money to someone who earns $ 500,000”, as is for someone who earns a tenth of that, asked Singh?
The NDP leader said his party will propose his own tax plan in the next few days, but said Monday that he favors cutting the GST of essential elements such as Internet access, cell phones and heating invoices.
“Those are invoices in which you eliminate the GST that will help workers disproportionately,” he said.
Singh did not address the fact that eliminating the GST of these invoices would also provide a rest on the essential elements for the highest income.
