Since 2015, the Government’s plan has helped put more money in the pockets of hard-working Canadians. These investments, and the hard work of Canadians, have led to a strong and growing economy. Still, there is more work to be done to make life more affordable for Canadians, and grow an economy that works for everyone.
Today in Toronto, Minister of Finance Bill Morneau visited The Children’s Book Bank to discuss the Government’s recent proposal, announced on December 9, 2019, 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.
“The Canadian economy is strong and growing, but we know there is still more work to be done to make life more affordable for more people. That’s why, as our first order of business in our second mandate, our government took another step to lower taxes for the middle class and people working hard to join it. The proposed increase to the Basic Personal Amount will mean more money in the pockets of hard-working Canadians, to help pay for things they need.”
– Bill Morneau, Minister of Finance
The proposed increases in the BPA would mean lower taxes for close to 20 million Canadians.
By 2023, single individuals would save close to $300 in taxes each year, while families-including those led by a single parent-would save nearly $600 in taxes each year.
Nearly 1.1 million more Canadians would no longer pay tax in 2023, and the wealthiest Canadians-the top 1 per cent-would not benefit from this proposed increase.