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

Nanaimo man caught with more than 200,000 child porn images to be sentenced

Crown says Aaron Macrae recorded video of children on buses and at his workplace

City of Nanaimo budget talks underway, projected tax increase up to 5.6 per cent

Series of special finance and audit meetings was held Wednesday at conference centre

One person injured in rollover crash on Nanaimo Parkway

Accident happened a little after noon in southbound lanes near Cedar Road

LETTER TO THE EDITOR: Save small park’s trees

Everybody uses oxygen produced by this, and every other park, says letter writer

Beefs & Bouquets, Nov. 21

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

One person injured in rollover crash on Nanaimo Parkway

Accident happened a little after noon in southbound lanes near Cedar Road

City of Nanaimo to issue alert as it moves to new emergency information system

Municipality will send out reminder Thursday, Nov. 21, asking residents to switch to new system

LETTER TO THE EDITOR: Time for a ban on leaf blowers

Loud noise can cause heart attacks, deafness and mental disorders, says letter writer

Nanaimo’s Kirkwood Academy presents 20th production of ‘The Nutcracker’

More than 150 dancers of all ages to participate in classic Christmas ballet Nov. 22-23

Cowichan Milk Company: from grass to glass, bottled milk right to your door

Farm stand open 6 days a week, and home delivery is available everywhere from Mill Bay to Chemainus.

Algae bloom killing farmed fish on Vancouver Island’s West Coast

DFO says four Cermaq Canada salmon farms affected, fish not infectious

Headlocks for Hunger pro wrestling show making its return

Vancouver Island Pro Wrestling holding card Saturday, Nov. 23 at Centennial Building

Three cops investigated in connection to ex-Vancouver detective’s sexual misconduct

Fisher was convicted in 2018 after pleading guilty to kissing two young women who were witnesses in a criminal case

Most Read