MONTREAL – Today, the Green Party of Canada announced its commitment to raise the federal Basic Personal Amount (BPA) from approximately $15,705 to $40,000. This bold tax reform will benefit 78% of taxpayers earning less than $100,000 by delivering up to $3,675 in annual tax relief—a meaningful and immediate boost to household budgets across the country.
“This is about giving everyday Canadians a fair break,” said Green co-leader Jonathan Pedneault. “Too many people are stretched thin, while the biggest corporations walk away with record profits and sweetheart tax deals. This policy puts the money back where it belongs—in the hands of the people who earn it.”
The measure will inject an estimated $47 billion annually back into the pockets of Canadians—strengthening household finances, boosting local businesses, and reducing reliance on debt. It will be fully funded by restoring the general federal corporate income tax rate to its pre-Harper levels and eliminating two thirds of costly and poorly targeted federal corporate subsidies.
“While half the country is choosing between rent and groceries, Canada’s biggest corporations are paying lower tax rates than nurses and teachers,” said Green co-leader Elizabeth May. “This is not just unfair—it’s economically reckless. The Green plan restores balance, boosts communities, and protects the services we all rely on.»
The policy proposal comes from one of GPC’s 12 platform priorities: Fair Taxation, which aims to close unfair tax loopholes and take action to ensure the ultra-rich and big corporations pay their fair share to relieve the strain on low and middle-income Canadians.
Economic Rationale
In 2023, Canadians collectively earned $1.9 trillion but spent over $2 trillion, including more than $400 billion on housing. This imbalance, driven in part by stagnant wages and rising costs, left households relying on debt and drawing from their savings. Meanwhile, Canadian corporations—especially Canadian-Controlled Private Corporations (CCPCs)—reported hundreds of billions in net taxable income, paying a federal tax rate of just 15%, well below what most working Canadians pay on each additional dollar they earn.
A return to the corporate tax rates of the late 1990s, combined with the reduction of unproductive corporate tax expenditures, would restore fairness and fiscal balance while ensuring this reform is revenue neutral.
A More Equitable Tax System
Under both Liberal and Conservative governments, Canadian individuals have shouldered a disproportionately large share of the country’s tax burden. According to the federal government’s 2022–2023 Annual Financial Report, individuals paid nearly $208 billion in personal income tax, more than double the $94 billion paid by corporations. This is despite the fact that corporations benefit heavily from public infrastructure, a skilled workforce, and billions in tax credits.
This Green Party proposal reflects a simple principle: if you benefit from the system, you should contribute to it fairly. When half of Canadians are struggling with housing costs and one in four faces food insecurity, bold and redistributive action is not only fair—it’s necessary.
The last major reform of Canada’s tax system took place in 1967. Nearly six decades later, it’s time for an update that reflects today’s economic realities and puts people first.
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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