Question Period Note: Lower taxes for the middle class

• The Government is delivering on its commitment to introduce a broad based tax cut as its first action in its second mandate.
• Building on the success of the 2015 middle class tax cut that lowered taxes for more than nine million Canadians, the Government is proposing to increase the Basic Personal Amount to $15,000 by 2023.
• The proposed increase in the Basic Personal Amount would mean lower taxes for close to 20 million Canadians, and would be phased in over four years, starting in 2020.
• When fully implemented in 2023, single individuals would save close to $300 in taxes every year, and families, including those led by a single parent, would save nearly $600 every year.
• Our proposal would mean that nearly 1.1 million more Canadians would no longer pay federal income tax at all.

• To help all Canadians cover their most basic needs, no federal income tax is collected on a certain amount of income that a person earns. This is called the Basic Personal Amount (BPA).
• To put more money in the pockets of Canadians, the Government is proposing to increase the BPA to $15,000 by 2023.
• The Government also proposes to increase two related amounts, the Spouse or Common-Law Partner Amount and the Eligible Dependant Credit, to $15,000 by 2023.
• To ensure that this tax relief goes to people who need help most, the Government would phase out the benefits of the increased BPA for wealthy individuals.
• Specifically, the increase in the BPA and other amounts would be gradually reduced for individuals with net income above $150,473 in 2020 (the bottom of the fourth tax bracket).
• Because the increases in the BPA and related amounts would be eliminated for individuals with net incomes over $214,368 in 2020 (the threshold for the top tax bracket), the wealthiest Canadians would not benefit from this proposed change.

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