December 3rd, 2015

Liberal tax cut leaves most Canadians behind

NDP Tax Fairness proposal benefits the middle class and those working hard to join it

The Liberal government’s tax plan most benefits the wealthiest and leaves the majority behind. Canada’s progressive opposition has proposed an adjustment to improve the policy and extend the benefits to all middle class and working families.

Instead of applying the tax cut only to income in the second tax bracket, the NDP is calling for a cut to taxes on the first tax bracket and a boost to the Working Income Tax Benefit.

“The Liberal plan means zero benefit to two thirds of Canadians, while giving its biggest benefits to some of the wealthiest individuals in this country,” said NDP Finance critic Guy Caron (Rimouski-Neigette – Témiscouata – Les Basques). “As the progressive opposition, we are ready to fix the Liberal tax proposal so government action matches Liberal campaign rhetoric.”

Under the Liberal plan:

  • Median income earners making $31,320 get $0 in benefits.
  • Canadians earning between $11,000 and $45,000 would see $0 in benefits.
  • High-income earners making $210,000 would in fact get $270 in tax cuts.
  • Only people making more than $89,000 would receive the maximum benefit.

Under the NDP proposal:

  • Median income earners making $31,320 would get $200 in tax cuts.
  • People earning between $11,000 and $45,000 would see an average benefit of $172 in tax cuts.
  • High-income earners making $210,000 would pay $66 more in taxes rather than receiving the Liberal tax cut.
  • People making $44,701 will receive the maximum benefit of the policy.

“As it stands, the Liberal tax cut proposal leaves the bottom 67.5% of Canadian taxpayers behind while giving the largest benefits to people making between $89,000 and $200,000 per year,” said Caron. “That’s more of the old discredited trickle-down economics. We’ve offered a reasonable adjustment so that middle class and working families get the break they need.”