Government of Canada Delivering Progress for Canada's Middle Class
News release
September 11, 2018 – Saskatoon, Saskatchewan – Department of Finance Canada
Canada's economy is strong and growing – and middle class families are benefitting from this growth.
By this time next year, a typical middle class family of four will receive, on average, about $2,000 more each year, as a result of the middle class tax cut and the Canada Child Benefit. Because of these changes, more families will be able to pay for things like healthy food, back-to-school clothes, and new winter boots for growing kids.
Finance Minister Bill Morneau shared these results today in Saskatoon, Saskatchewan, where he unveiled a new summary report, Real Progress for Canada's Middle Class. The report detailed how recent investments have helped give middle class Canadians more money to save, invest, and grow the economy, while also helping to create more good, well-paying jobs.
The effects of the Government's middle class tax cut and the Canada Child Benefit were also examined. Citing data from the Organisation for Economic Co-operation and Development (OECD), the report noted that an average two-income household with two children now keeps nearly 85 per cent of their gross income, once the Canada Child Benefit is factored in. This is an effective tax rate that was 20 per cent less than the OECD average in 2017, and 23 per cent less than what a comparable middle class family would pay in the United States.
For single-parent households with two children, or for families with two children where only one parent is working, the benefits are even more significant. According to the OECD, when the tax-free Canada Child Benefit and other benefits are added to family income, those families pay effective personal tax rates of just 1.8 per cent and 1.2 per cent respectively – keeping more than 98 per cent of what they earn.
Minister Morneau unveiled the report following a roundtable discussion with local business leaders. He also met with a local family, where he heard about how the middle class tax cut and the Canada Child Benefit are helping to make life more affordable.
Quotes
"Across the country, a strong and growing middle class is driving economic growth, creating new jobs and more opportunities for everyone to succeed. While there is more work to be done to ensure that every Canadian has a real and fair chance at success, real progress has been made. I'd like to thank the business leaders I met with for sharing their views on how we can work together to build an economy that works for everyone, and I especially want to thank the parents who took time out of their busy day to share their family's story with me."
- Bill Morneau, Minister of Finance
Quick facts
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540,000 full-time jobs have been created in the last three years, and as a result, the unemployment rate is close to a 40-year low.
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The share of working-age Canadians employed is close to its highest in Canada's history, and 2018 so far is marking the strongest wage growth for Canadians in a decade.
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More than nine million Canadians are benefitting from the 2016 middle class tax cut; couples who benefit are saving $540 on average.
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As a result of the Canada Child Benefit, a single working mother or father who has two children and who earns $30,000 a year now receives about $3,000 more in benefits annually.
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Contacts
Media may contact:
Pierre-Olivier Herbert
Press Secretary
Office of the Minister of Finance
pierre-olivier.herbert@canada.ca
613-369-5696
Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000
General Enquiries
Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca
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