MPs adopt meagre income tax cut for Canadians
Opposition MPs state the Liberal plan does not sufficiently address the affordability crisis.
The Commons unanimously passed a Second Reading for a proposed $5.8 billion income tax cut (335-0), despite opposition MPs indicating they would seek amendments at the finance committee hearings.
“This bill, while helpful, can and should be improved,” said New Democrat leader Don Davies. “The biggest benefits of the tax cut would go to higher income earners.”
Bill C-4, the Act Respecting Certain Affordability Measures, proposes lowering the tax rate on the first $57,375 of taxable income from 15% to 14% by 2026. Prime Minister Carney introduced this as a "middle class tax cut" on March 23.
Conservative Leader Pierre Poilievre earlier advocated a larger 2.25% income tax cut to no avail.
Poilievre announces Conservatives will "cut income taxes by 15% for the average worker or $2,000 for the average couple" if elected.
— Rebel News (@RebelNewsOnline) March 24, 2025
"This is a tax cut for everybody who's ever got up early in the morning and worked hard to build our country." pic.twitter.com/bxMEoo7gUz
Davies stated the proposed bill would disproportionately benefit wealthier taxpayers and offer little to no advantage for the poorest Canadians, according to Blacklock’s. “The average benefit for someone living in poverty would be just $11 a year.”
The proposed tax measure is believed to have unforeseen consequences that will require later amendments. It would decrease the value of the Canada caregiver credit and disability tax credit, which are tied to the lowest federal income tax rate.
“When that rate is reduced the dollar value of these credits also decreases,” said Davies. “This is not just a technical oversight. It would hurt the financial security of some of the most vulnerable people in our country.”
Finance Minister François-Philippe Champagne declined to comment on potential amendments before the Commons adjourns for its 12-week summer recess on June 20.
MPs give unanimous 2nd Reading to $8B income tax cut on @NDP warnings they'll seek amendments to correct:"unintended consequences." https://t.co/nQddJhrTzi @DonDavies pic.twitter.com/AO3M4vMF3P
— Blacklock's Reporter (@mindingottawa) June 13, 2025
The Minister stated May 27 that Bill C-4 aims to reduce taxes and living costs for Canadians. A key provision includes eliminating the GST on new homes under $1 million for first-time buyers, estimated to cost $383 million in the upcoming year.
“We expect other parliamentarians to obviously support the government because this is about Canadians,” said Champagne. “You know we are in a dire situation.”
Poilievre stated the Liberal plan inadequately addresses the ongoing affordability crisis, but vowed to support initiatives that benefit Canadians. “The question we always ask is, ‘Is the proposal better than the status quo?’ If it is, then we support it. If it’s not, then we oppose it.”
While absent from the House of Commons, Poilievre stated the Conservatives will propose amendments to cut bureaucracy, consultants, corporate welfare, and foreign aid. Prime Minister Mark Carney intends to fund the tax break by increasing government efficiency.
Banker says Liberal tax cut provides $32 in savings per person
— Rebel News (@RebelNewsOnline) May 28, 2025
TD Bank anticipates 100,000 Canadian job losses by the end of the third quarter, excluding the 75,000 jobs lost during the U.S. trade war.https://t.co/0FEYNHa8iq
Government spending is projected to reach $486.9 billion this fiscal year, an 8.4% increase over last year, according to the government's main estimates detailing taxpayer dollar allocation.
Poilievre warned that unchecked deficit spending could worsen Canadian inflation. The federal budget delay until fall raises concerns about increased spending.
Prime Minister Carney stated the tax relief would benefit all Canadian workers, saving a two-income family up to $825 annually. TD Bank estimates the annual cost of the tax cut at $5.6 billion, with typical earners saving only $32.
Alex Dhaliwal
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Fran g commented 2025-06-16 22:11:21 -0400$32 dollars,whatever will I buy with that,,,,,,,,,,,,maybe 1 bag of groceries. Liberals think we are too stupid to figure the math. -
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