Making life more affordable for Canadians
February 18, 2020 - Ottawa, Ontario - Department of Finance Canada
Thanks to the hard work of Canadians, our economy is strong and growing. To ensure all Canadians can benefit from this success, more work needs to be done. This is why the Government of Canada is moving forward with a plan to help the middle class prosper and build an economy that works for everyone.
Today, Minister of Finance Bill Morneau released an updated analysis of the net impact of measures introduced since 2015 to make life more affordable for the middle class and people working hard to join it.
In 2015, the Government of Canada introduced a tax cut for the middle class that is benefitting more than 9 million hard-working Canadians. The creation of the Canada Child Benefit (CCB) in 2016 has meant more money for the families who need it most, helping to lift nearly 300,000 kids out of poverty and giving them a better start in life.
In addition, the proposed raise in the Basic Personal Amount (BPA) 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.
As a result of the middle class tax cut, the CCB and the proposed changes to the BPA, a typical family of four could be better off by more than $2,300 this year, compared to 2015. And when the proposed changes to the BPA are fully rolled out, the family could be better off by more than $2,800 compared to 2015. Detailed breakdowns are in the attached annex.
These actions are putting more money into the pockets of Canadians so they can spend it on things that matter the most. By making life more affordable, these measures will help keep Canada’s economy growing and create more good jobs.
“In the last four years, we’ve followed through on our commitment to make life more affordable for middle class Canadians. With these measures families have more money to save or spend on things that matter to them, and build a better future for their children. That’s what our plan for middle class progress is all about.”
Bill Morneau, Minister of Finance
“Over the last four years, we have seen what can happen when we invest in Canadians. We have put more money in the pockets of families, contributed to the creation of more than a million new jobs, and helped create greater opportunities for people to get ahead. Our plan for middle class progress is working, and it will continue to grow an economy that works for everyone.”
Mona Fortier, Minister of Middle Class Prosperity and Associate Minister of Finance
Media may contact:
Director of Communications
Office of the Minister of Finance
Office of the Minister of Middle Class Prosperity and Associate Minister of Finance
Department of Finance Canada
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