Federal Liberal Party Leader Justin Trudeau on Monday announced that he would give the middle class a tax cut of seven percent.
Trudeau said: “Over the past two years I have met thousands of Canadians across the country. What I have heard is clear: under Stephen Harper, middle-class Canadians have had to work harder just to make ends meet. We have a plan for fairness. A Liberal government will give a tax cut to the middle class and provide middle class families with more money to raise their kids.”
Trudeau said that the Liberal plan will make the tax system fairer and cut the middle class tax rate by seven percent. A Liberal government will also provide one bigger, fair, tax-free, monthly cheque for middle-class and low-income families. Harper’s unfair system gives money to those who need it least. Liberals believe in a country that works for everyone. We will ask the wealthiest Canadians – those in the top one percent of incomes – to pay a little more so the middle class can pay less.
“When the middle class is strong, growing, and successful, so is Canada. Liberals will deliver tax cuts for the middle class in addition to one simple, monthly benefit for the families that need it most. Liberals will continue presenting solutions to grow the economy. The plan we announced today will put more money in the pockets of the middle class and those working hard to join it,” said Trudeau.
- The 22-per-cent tax rate for anyone with a taxable annual income between $44,701 and $89,401 would be cut to 20.5 per cent.
- A new tax bracket of 33 per cent would be imposed on those with taxable incomes over $200,000 a year. The current top bracket of 29 per cent would continue to apply to those earning between $138,586 and $200,000.
- The Conservatives’ newly enriched universal child care benefit would be replaced by rolling together two other existing child benefits into a single, more generous, monthly, tax-free “Canada child benefit.”
- The Conservatives’ income-splitting tax credit would be scrapped.
- The near doubling of the tax-free savings account contribution limits announced in the federal budget would be cancelled.