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How do the Liberals and Conservatives plan to cut taxes and balance the books?
Conservative Leader Pierre Poilievre on Monday announced his plan for an income tax cut that his party says would save the average worker about $900 a year. In response to a reporter’s question about the cost of his campaign promises, Poilievre said his government would cut bureaucracy, consultants, foreign aid and ‘handouts to insiders.’
This seems to be the question of the day.
Both the Conservatives and Liberals are promising varying tax cuts for the lowest-income bracket of Canadians, who pay 15 per cent in federal taxes on their first $57,375 in taxable income.
Both Carney and Poilievre promised to lower government spending and reduce the country’s debt, which stands at $1.3 trillion.
Carney has proposed a cut of one percentage point to the lowest tax bracket in Canada, while Poilievre would cut it by 2.15 percentage points. Mahmood Nanji, a policy fellow at Ivey Business School, said a cut of either size would be “very, very expensive.”
Poilievre’s proposal is estimated to cost $14 billion once the tax cut is fully implemented in 2027-28.
“We will be cutting bureaucracy, cutting consultants, cutting back on handouts to insiders and we will cut back on foreign aid,” Poilievre said, answering a question by the Globe and Mail’s Bill Currie.
Poilievre is also proposing a “dollar-for-dollar law requiring ministers to find one dollar of new savings for every dollar of new spending.”
Carney has said, if elected, he will boost investments that will help pay for cuts. Both leaders say they will back their proposals up with numbers soon.
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