ELECTION 2019: Have Justin Trudeau’s Liberals really cut middle-class taxes?

Conservative Andrew Scheer vows to cut bottom bracket, NDP’s Jagmeet Singh targets wealth tax

Black Press Media has taken an in-depth look at three major issues in the 2019 federal election campaign: energy and climate change, taxation and the economy, and housing. Our second topic: taxation

Even the central economic policy of the Justin Trudeau government remains hotly disputed as voters begin casting ballots in the Oct. 21 federal election.

In their only English-language debate for the federal election on Oct. 7, Liberal leader Justin Trudeau and Conservative leader Andrew Scheer sparred over tax measures that observers say are similar.

Trudeau’s signature policy since 2015 has been helping the “middle class and those working hard to join it,” reducing middle-income taxes while increasing them on the highest-income earners. His government lowered the rate for the middle-income bracket from 22 to 20.5 per cent. The 2019 Liberal platform promises to raise the level of federal tax-free income to $15,000, estimating it will save the average family $600 a year.

Scheer’s plan cuts the rate of the lowest tax bracket (up to $47,630) from 15 per cent to 13.75 per cent over four years, claiming average savings for a two-income couple with average salaries of about $850 a year.

In the Oct. 7 TV debate, Scheer said Trudeau’s tax policies mean 80 per cent of middle-class families pay more than when the Liberals took office. This often-cited figure comes from a Fraser Institute study, which calculates the effect of the Liberal government eliminating income splitting for couples with children, and cancelling the previous Conservative government’s targeted tax credits for children’s fitness, education, textbooks and transit.

RELATED: B.C.’s top income tax rate nears 50%, investment tax highest

RELATED: Trudeau says Ottawa open to B.C. refinery as fuel prices soar

The study calculates that the net effect of Liberal changes is $840 per year more in federal tax for the average family.

The Conservatives were the last major party to release their costed platform, promising changes that would save a retired B.C. couple $2,580 a year. The Liberal campaign fired back immediately, saying the Conservative plan scraps $18 billion in planned infrastructure, and cuts another $14 billion described only as “other operating expenses reduction.”

Scheer has promised to reinstate the fitness tax credit, up to $1,000 per child, with another $500 credit for children’s art and learning, which includes language, science, math or coding. Scheer has also promised a two-year tax credit program worth $1.8 billion for green-friendly home renovations, a promise the Liberals matched later the same day with an interest-free loan program for energy-saving renovations.

NDP leader Jagmeet Singh’s platform targets the highest-income earners, promising to raise the top income tax rate for those earning more than $210,000 a year from 33 to 35 per cent. Singh also promises a one-per-cent “wealth tax” on “super-rich multi-millionaires,” those with $20 million or more in assets. The NDP says the wealth tax will generate “several billion dollars annually,” an estimate questioned by opponents who say the wealthiest people can shelter their assets and income.

Green Party leader Elizabeth May offers little in personal tax changes, other than increasing the tax credit for volunteer firefighters and search and rescue volunteers. The Green platform focuses on corporate taxes, proposing to raise the rate from 15 to to 21 per cent. May also wants a five-per-cent surtax on bank profits, and a tax on transnational e-commerce companies such as Netflix, Facebook, Amazon, Google and Uber that do business in Canada and pay no corporate tax here.

See our first story in the series: Climate strikes make environment top of mind for federal leaders

The third and final piece in our federal election series, to be published on Friday, is on housing.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Body found after SUV found fully engulfed in flames in Abbotsford field

Integrated Homicide Investigation Team has been called in

PHOTOS: West Coast Christmas Show and Artisan Market at Tradex

Over the past 11 years the show has been attended by over 175,000 visitors

Annual Realtors Care Blanket Drive supports 5 Abbotsford organizations

25th anniversary event runs from Nov. 18 to 25

British comedy duo James and Jamesy present O Christmas Tea

Production comes to Abbotsford Arts Centre on Wednesday, Nov. 20

WoMen Rise holds two events, including tree planting

Community welcome to events on Sunday, Nov. 17 in Abbotsford

VIDEO: B.C. couple creates three-storey ‘doggie mansion’ for their five pups

Group of seven, who Kylee Ryan has dubbed as the ‘wandering paws,’ have a neat setup in Jade City

MacKinnon powers Avs to 5-4 OT win over Canucks

Vancouver battled back late to pick up single point

Paul Bissonnette joins Vancouver Warriors after tweeting he could walk on to an NLL club

Bissonnette will join the Warriors for their final week of training camp at Rogers Arena

Port Alberni mom takes school district to court over Indigenous smudging, prayer in class

Candice Servatius, who is an evangelical Christian, is suing School District 70

Family of B.C. man killed in hit-and-run plead for tips, one year later

Cameron Kerr’s family says the driver and passengers tried to cover their tracks

Princeton couple pays for dream vacation with 840,000 grocery store points

It’s easy if you know what you are doing, they say

Chilliwack family’s dog missing after using online pet-sitting service

Frankie the pit bull bolted and hit by a car shortly after drop off through Rover.com

B.C. wildlife experts urge hunters to switch ammo to stop lead poisoning in birds

OWL, in Delta, is currently treating two eagles for lead poisoning

Most Read