OTTAWA- More than a third of Canadians make under $40,000 yearly, which is only slightly higher than a full-time federal minimum wage job. In its forthcoming plan to reform the Income. Tax Act, the Green Party of Canada will propose measures to help Canadians with the lowest incomes.
The Greens’ progressive tax plan stands in stark contrast with the Liberal-Conservative so-called tax cuts that will result in minimal savings for Canadians at a time of great economic stress for most families. The Liberals claim their adjustments to the lowest tax bracket could save Canadians up to $412 a year. For most families, that’s the equivalent of one or two trips to the grocery store. The Conservatives say they will cut the tax rate on the lowest income tax bracket from 15 per cent to 12.75 per cent. But they’re also promising tax cuts for big corporations who already pay much lower tax rates than workers.
“We got more trickery from the do-nothing establishment parties yesterday. Their fake ‘tax cuts’ are just pretty packaging for the same old game – helping their corporate buddies get richer using our money.” said co-Leader Jonathan Pedneault. “As for the NDP, their plan to cut taxes on “essential items” falls squarely in Canada’s tradition of boutique tax-engineering that does not respond to the systemic problems Canadians face. Who gets to determine what is “essential”? A party that failed to use its leverage on the Liberal government to address the drivers of systemic inequality?”
Here are some important facts to keep in mind as Canadians debate taxation.
- Since 2015, the contributions of personal income taxes account for more than 50% of federal government revenues.
- Overall, Canadians pay twice as much in federal income taxes as corporations do, with $208 billion paid by all of us in 2023, compared to $94 billion for corporations.
- Corporate profits in Canada have substantially outpaced wage growth, yet we collectively continue to contribute twice as much as they do.
- The last comprehensive tax review in Canada took place almost six decades ago, in 1967.
“Whether Liberal or Conservative, Canada has a history of Finance Ministers who have only tweaked the tax code with boutique changes that don’t get to the root of the problem,” said co-leader Elizabeth May. “The result is a convoluted tax code which is unfair to low income Canadians. We need more Greens in Parliament to push for tax reform so we can revamp our tax law and make it fairer.”
Tomorrow, Greens will unveil the first in a series of bold proposals aimed at reforming Canada’s taxation system to create a fairer and more sustainable economy.
Green budget and platform details over the coming weeks will demonstrate how new taxes aimed at wealthiest and corporations will produce greater revenue.
Greens will never cut services to Canadians- we will expand them.
#####
For more information or to arrange an interview :
Fabrice Lachance Nové
Press secretary
514-463-0021
Rod Legget
Senior Advisor, Strategic Communications
613-203-1524