While the Liberals and Conservatives promise tax cuts for millionaires, we’re focused on helping the people who actually need it—families trying to get by, workers squeezed by higher costs, and people directly hit by Donald Trump’s tariffs.
Commitment:
• An NDP government will put more money in peoples’ pockets and help restore fairness to our tax system. This will help defend Canadians from the impacts of the Trump tariffs.
○ Increase the basic personal allowance to $19,500
• No one earning $19,500 or less will pay any federal income tax
• Individuals earning between $19,500 and $177,882 save $505 dollars per year
• The benefit starts phasing out at $177,882
• Lowering the high-income BPA to $13,500 improves the fairness of our income tax system
• There is no benefit for those making over $235,632
○ Eliminate the GST on essentials to make life a little more affordable
• Includes home energy bills, cellular and internet bills, children’s clothes and footwear, and prepared meals from the grocery store
• We estimate this would save the average family of four $448
○ Boost supports for vulnerable Canadians, by doubling the Canada Disability Benefit and increasing the Guaranteed Income Supplement to lift all seniors out of poverty.
Rationale:
• Canadians are facing an affordability crisis, and this plan puts money in the hands of middle- and lower-income Canadians, while Mark Carney and Pierre Poilievre want to give tax cuts to millionaires.
• Canada’s tax system is increasingly regressive, and the richest pay less tax than middle income earners. For example, the wealthiest 5% of Canadians pay just over 30% effective tax rate, while the bottom 50% pay just under 45% effective tax. This restores more progressivity to Canada’s federal income tax system.
• Canada already exempts many essential goods from sales taxes, like most groceries, prescription drugs, or feminine hygiene products. This change is a recognition of the necessities facing families.
Tax Saving (Two parents with two children)
| Family income* | NDP Income Tax Cut | NDP GST Cut | NDP Total | Liberal | Conservative |
|---|---|---|---|---|---|
| Two parents each earning $40,000 | $1,010 | $448 | $1,458 | $477 | $1,074 |
| Two parents, each earning $80,000 | $1,010 | $448 | $1,458 | $825 | $1,856 |
| Two parents each earning $150,000 | $1,010 | $448 | $1,458 | $825 | $1,856 |
| Two parents each earning $300,000 | −$300 | $448 | No income tax savings Total: $148 |
$857 | $1,928 |
| Two parents collecting $5 million through capital gains** | −$311 | $448 | No income tax savings. No Capital Gains saving Total: $137 |
$523,545 | $523,545 |
*Employment income, except the final row; **Income as capital gain