The Conservatives’ announcement of a straightforward, broad-based cut to the lowest income tax bracket rate by 1.25 percentage points will come as music to the ears of cash-strapped Canadians.
For a two-income household, it works out to savings of up to $850 per year. There’s no loopholes, no carve-outs, no fine print. If you pay income taxes, under the Conservative plan, you’re going to have more money in your pocket. Full stop.
After years of gimmicky boutiques, the simplicity of it is almost jarring.
And the amount is significant. The Parliamentary Budget Officer’s official costing of the proposal projects that once the credit is fully in place – the Conservative plan is to cut the lowest rate from 15 to 13.75% over three years – it will mean nearly $6 billion more in the pockets of Canadian families.
Interestingly, the last party to promise this kind of tax cut wasn’t the Conservatives. It was the Liberals.
In the 2015 federal election, Justin Trudeau’s Liberals made a promise to cut the middle income tax bracket from 22% to 20.5%. Once in office, they implemented it right away, signing it into law as one of their first acts in office.
Unfortunately, the Liberals also squeezed taxpayers on other fronts: carbon taxes, payroll taxes, small business taxes (thankfully mostly walked back) and an escalator tax on alcohol.