Party tax plans aim aid at very different groups, analysis shows

NDP plan targets aid to middle class and poor, Conservatives aim biggest benefit at high incomes, Liberals offer light version of Conservative plan.

The NDP and Conservatives have produced strikingly different tax plans that focus benefits on very different people, while the Liberals offer a more muted version of the Poilievre plan, according to an analysis by the Canadians Centre for Policy Alternatives.

The analysis by CCPA senior economist David Macdonald includes the changes to taxation and tax sheltering offered by the parties and determines their impacts on tax filers in various income bands using Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M).

Details of party tax plans

Several elements of the NDP tax plan direct benefits to low income earners and groups while increasing taxation on some capital gains, affecting high income groups:

• make the first $19,500 of income tax-free by increasing the Basic Personal Amount

• increase the Canada Disability Benefit from $2,400 to $4,800

• increase the Guaranteed Income Supplement paid to low-income seniors

• remove GST on “essentials and monthly bills" such as home heating, cell phone and internet bill, utility bills and meals purchased from grocery stores

• increase the percentage of capital gains over $250,000 a year that is subject to taxation (i.e. capital gains inclusion rate) from 50 per cent to 66 per cent

The Conservative tax plan increases access to tax sheltering and gives an income tax cut skewed to favour higher incomes:

• make all capital gains made from Canadian investments tax-free

• increase the annual amount that can be contributed to a Tax-Free Savings Account from $7,000 to $13,000

• increase by $10,000 the amount a worker over 65 years old can earn tax-exempt

• extend the limit on RRSP tax exemption from age 71 to age 73

• cut the tax rate of the first income tax bracket to 12.75 per cent and cut the non-refundable credit rate to 12.75 per cent

The Liberal tax plan offers the same income tax cut as the Conservatives, but at a smaller rate:

• cut the tax rate on first income tax bracket from 15 to 14 per cent and cut the non-refundable credit rate to 14 per cent

---

Thanks to Data Shows donors, we made impact last week with stories seen by about 86,000 people in Canada and read by over 15,000. Our Substack followers have almost reached 3,500 and our Data Shows Facebook page is getting close to 3,800 followers. Data Shows’ expansion is helped by generous people who give a one-time or monthly gift. Thank you!