Over the past four years, Canadians have made real progress together. Thanks to Canadians' hard work, our economy is strong and growing-but the rising cost of living means that not everyone is able to share in that success. There is more work to be done to make sure that Canada's economy works for everyone.
Building on the success of the 2015 middle class tax cut that lowered taxes for more than nine million Canadians, the Government of Canada is moving forward with a proposal that would put more money in the pockets of Canadians. Today, Finance Minister Bill Morneau tabled in the House of Commons a Notice of Ways and Means Motion that proposes to amend the Income Tax Act to lower taxes for the middle class, and people working hard to join the middle class, by increasing the Basic Personal Amount (BPA) to $15,000 by 2023.
The enhanced BPA - along with past Government actions like the Canada Child Benefit, more help for students, and more generous seniors' benefits - would help to make life more affordable for Canadians. It would mean that middle class Canadians, and people working hard to join the middle class, would pay no federal taxes on the first $15,000 they earn. This increase would cut 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. It would mean that nearly 1.1 million more Canadians would no longer pay federal income tax at all.
To ensure that this tax relief goes to the people who need help most, the Government would phase out the benefits of the increased BPA for wealthy individuals.
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.
