Mr. Speaker, the government’s approach to tax policy is to build on its record of making life more affordable for the middle class and those working hard to join it, while promoting greater fairness in the tax system. As part of this approach, the government regularly seeks feedback from Canadians and various advisory panels.

The government reduced the rate of the second personal income tax bracket from 22% to 20.5%. This tax cut for the middle class, which has been in effect since 2016, is benefitting more than nine million Canadians. Single individuals who benefit are seeing an average tax reduction of $330 every year, and couples who benefit are seeing an average tax reduction of $540 every year.

The government also introduced the Canada child benefit in 2016, which has meant more money for the families who need it most. The Canada child benefit has helped lift nearly 300,000 children out of poverty, giving them a better start in life.

In addition, the government’s proposed increase in the basic personal amount would lower taxes for close to 20 million Canadians. By 2023, single individuals could save close to $300 in taxes each year, while families, including those led by a single parent, could save nearly $600 in taxes each year. Nearly 1.1 million more Canadians will no longer pay tax in 2023. A detailed breakdown of the net impact of these measures is available on the Finance Canada website: www.canada.ca/en/department-finance/news/2020/02/annex-net-impact-of-measures-to-make-life-more-affordable-for-canadians.html.

At this time, the government’s top priority is to help families and businesses get through the challenges they face as a result of the COVID-19 pandemic. When COVID-19 is under control and Canada’s economy is ready to rebound, the government’s focus will be to make smart, targeted investments to jump-start the country’s economic recovery and begin to repair the damage done by the pandemic.

Chrystia Freeland

$435,302.00