Conservative Leader Pierre Poilievre promised a 15 per cent income tax cut for Canadians that could see two-income families keep $1,800 of their income every year.
The announcement came on the first day of Poilievre’s federal campaign. If implemented, the tax cut would see Canadians in the lowest income bracket, earning $57,000 a year, have their tax rate drop by 15 per cent to 12.75 per cent. When compared to Liberal leader Mark Carney’s recent announcement, it amounts to double the potential savings.
The Conservatives predict the decrease would save the average Canadian worker earning $57,000 around $900 and as much as $1,800 per year in savings for two-income families, a change which Poilievre said will be felt most by “modest-income Canadians.”
“It’s time to let Canadians keep more of what they earn,” said Poilievre in a statement released Monday.
Canadians will head to the polls on Apr. 28 after Carney called a snap election, giving parties only 37 days to campaign.
Following this announcement, Carney pledged that a Liberal government would drop the overall income tax rate by one percentage point.
However, the Conservatives say Poilievre’s 15% tax cut would amount to more when broken down, with Carney’s cut estimated to save a two-income family only $825 annually, less than half of the Conservatives’ proposal.
The opposition leader said it will be part of the broader Conservative Bring It Home Tax Cut, and would be applied to “work, investment, energy and homebuilding.”
His announcement was applauded by the Canadian Taxpayers Federation. The advocacy group said it was the “best” option for the government to ease the cost of living.
“Poilievre is providing significant tax relief for people working hard to make ends meet,” said CTF federal director Franco Terrazzano in a statement Monday. “The best way the government can make life more affordable is to let people keep more of their own money and Poilievre’s tax cut would do just that.”
Poilievre’s statement addressed that while Carney was serving as an economic advisor to former prime minister Justin Trudeau, he oversaw and supported further tax hikes and calamitous government spending.
These policies led to the average Canadian family now paying roughly $10,000 more in taxes than they did before the Liberals were first elected in 2015.
“Under the Liberals, Canadians are spending more on government than on clothes for their kids, food for their family, and a place to call home,” said Poilievre. “I will end this, and this 15% income tax cut is just the beginning.”
According to Poilievre, money for the tax cut could be replenished by “eliminating waste, cutting bureaucracy and consultants” and anchoring government spending to a “dollar-for-dollar law.”
Ottawa has projected that the deficit for this fiscal year will reach $48.3 billion.
Terrazzano said “it’s great to see the two major parties dueling over who can cut taxes the most” noting that Poilievre’s offer provides twice as much relief as that of Carney.
“Now we need to see big tax cuts for Canadian businesses to make them more competitive in the wake of American tariffs,” he added.