Latest news with #taxcut
Yahoo
15 hours ago
- Business
- Yahoo
Tories challenge Liberals on promised tax cuts
OTTAWA – Daily hot chocolates are off the menu. Fresh from the Parliamentary Budget Officer's new report showing the government's promised middle-class tax cut falling far from what was promised, the last Question Period of the abbreviated spring sitting saw the Conservatives demanding answers. 'Just like Trudeau, he can't even get a tax cut right,' said Calgary East MP Jasraj Hallan, accusing Prime Minister Mark Carney of deceiving Canadians. 'He promised $800, yet the average Canadian will only save $90 this year – not even enough to get a hot chocolate from Tim Hortons weekly.' Despite Carney's election promise that his middle-class tax cuts would save families an average savings of $825 per year, Parliamentary Budget Officer Yves Giroux said that number's actually closer to $280, with most families expected to see savings of around $90 in 2025. Tories accuse PM of thinking about Brookfield's 'bottom line' with EV mandate Pull plug on gas engine ban, Tories urge government Two-income families with a child could see the biggest savings, but no more than $750. 'I recognize the job of prime minister comes with many responsibilities, I didn't know addition and division were one of them,' Carney said in response, pointing across the aisle to jeering Conservatives. 'The Parliamentary Budget Officer refers to the reductions for all Canadians,' he said. 'The vote that the members opposite supported this government on delivers tax cuts for the 22 million Canadians who pay taxes.' The PBO priced the Liberal tax cut at just under $64 billion over five years, while the Department of Finance Canada pegged the cost at $27 billion over the same time period. — With files from The Canadian Press bpassifiume@ X: @bryanpassifiume
Yahoo
21 hours ago
- Business
- Yahoo
Federal deficit estimated to hit $46 billion in 2024-25: PBO
The Parliamentary Budget Officer estimates the federal deficit will hit $46 billion in the 2024-2025 fiscal year because of better-than-expected revenues. The PBO expects the deficit to be $4.3 billion lower than its estimate in its election-costing report and $2.3 billion lower than what was estimated in the fall economic statement, according to its updated economic and fiscal monitor report released Thursday. 'The revision to our estimated deficit reflects a $5.2-billion increase in our estimate for revenues in 2024-25, somewhat offset by a $1-billion increase in our estimate for expenses,' the PBO said. The higher revenues are mainly due to higher corporate income tax revenues and customs import duties from the retaliatory tariffs on goods from the United States. The federal government currently has tariffs on nearly $60-billion worth of U.S. goods. In April, the Liberal Party estimated the federal government could receive up to $20 billion in revenue from the retaliatory tariffs, according to its election-costed platform. But a recent report by Oxford Economics Ltd. this month said 58 per cent of the U.S. imports hit by levies are eligible for exemption. The PBO also said the average Canadian family will save $280 on their taxes next year because of the federal government's planned income tax cut to 14.5 per cent from 15 per cent on the first $57,375 of taxable income. Canadian economic growth came in higher than expected during the first quarter at 2.2 per cent, but the PBO expects it to be flat in the second quarter due to a slowdown in exports and business investment. The federal government has not committed to providing a spring federal budget. Instead, Prime Minister Mark Carney said the government will provide an update of Canada's finances in the fall. He has also said he will split operational and capital spending into two separate budgets, with a promise to balance the operational budget within three years. The PBO said the government has committed to new fiscal anchors in the operating budget by 'cutting waste, capping the public service, ending duplication and deploying technology to improve public sector productivity' and reducing the spending growth to two per cent each year from nine per cent. The Liberal Party platform has promised $130 billion in net new spending over the next four years, which will put the deficit at $62.3 billion for the 2025-2026 fiscal year. Economists estimate the deficit will be higher after taking into account the announcement last week to increase defence spending. 'Unlike the previous fiscal anchor, the government has not defined how the new operating budget targets will be measured,' the PBO's report said. 'Specifically, there is no commonly accepted definition of what is defined as 'operating' or 'non-operating/capital' spending.' GST break could cost Ottawa $2.7 billion Feds face loss if Trans Mountain pipeline sold: PBO The PBO said it will be difficult for it to assess whether the government is on track in meeting its fiscal objectives under this new budget set-up. 'PBO also notes that the government could fulfill its operating budget goals, and yet at the same time the federal debt-to-GDP ratio could grow because of additional borrowing for non-operating spending (for example, new acquisitions of weapons systems for the Canadian military),' it said. 'This means that the government could achieve its fiscal objective and yet be fiscally unsustainable.' • Email: jgowling@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
2 days ago
- Business
- CBC
Average Canadian family to save $280 next year from Liberal tax cut: PBO
The average Canadian family will save $280 on their taxes next year from the Liberal government's planned income tax cut, the parliamentary budget officer said in an analysis released on Wednesday. But some seniors and single Canadians are expected to save less, prompting criticism from Conservatives who argue the tax cut doesn't go far enough. The Liberal proposal would drop the tax rate to 14.5 per cent from 15 per cent on the first $57,375 of Canadians' taxable income this year, and down to 14 per cent next year. The promise was a pillar of the Liberal campaign during the spring federal election. At the time, Prime Minister Mark Carney's plan pitched annual savings of up to $825 per dual-income family. When the legislation was tabled through a ways and means motion late last month, Finance Canada projected maximum tax savings of $840 per couple. Yves Giroux, the parliamentary budget officer, said Wednesday that the average family likely won't get that much back. On a per-person basis, the average tax filer is estimated to save $90 on their 2025 income taxes because the tax cut only takes effect on July 1. The PBO expects that average will rise to $190 in savings next year. The PBO says a two-income couple in the second income bracket with a child would be expected to get the most back — $750 in average savings next year. For the average single Canadian with no children in the top tax bracket, the PBO said the typical savings would be roughly $350 annually. And a single senior in the first income bracket would get an average of $50 back next year. A single parent in the same tax bracket would save an average of $140. The PBO noted that the lower an individual's average income is, the less they can expect to save from a reduction in the first income tax bracket on a relative basis. Many low-income individuals also have existing tax credits to reduce their taxable income. The Conservative Party said in a statement Wednesday that the tax savings on a monthly basis wouldn't allow a low-income senior to buy a breakfast sandwich. The Official Opposition accused Carney of tinkering "on the margins to save Canadians mere cents a day." The Conservatives promised a steeper income tax cut of 2.25 percentage points during the election campaign, though that plan would have been phased in over four years. The Canadian Press reached out to Finance Minister François-Philippe Champagne for comment but has not yet received a response. The PBO priced the cost of the Liberal tax cut at nearly $64 billion over five years, though the net cost would be closer to $28 billion after taking into account associated reductions in federal tax credits under the plan. Finance Canada costed tax savings at around $27 billion over five years.
CTV News
2 days ago
- Business
- CTV News
Average family to save $280 per year from Liberal tax cut: PBO
Prime Minister Mark Carney answers a question during question period in the House of Commons on Parliament Hill in Ottawa on Tuesday, June 10, 2025. THE CANADIAN PRESS/Sean Kilpatrick OTTAWA — The parliamentary budget officer estimates the average Canadian family will save $280 on their taxes next year thanks to the Liberal government's planned income tax cut. A one-percentage-point cut to the bottom income tax bracket was a pillar of the Liberal campaign during the spring federal election. Prime Minister Mark Carney's plan pitched annual savings of up to $825 per dual-income family. But the parliamentary budget officer says in a new analysis that the average family likely won't get that much back. A couple with a child who are both earning in the second income bracket would get closest, with $750 in average savings, but most single Canadians and seniors are expected to save less. The Liberals tabled a ways and means motion last month that puts the tax cut in place starting July 1, but legislation to enact the change is still making its way through Parliament. This report by The Canadian Press was first published June 18, 2025 Craig Lord, The Canadian Press
Yahoo
2 days ago
- Business
- Yahoo
Average family to save $280 per year from Liberal tax cut: PBO
OTTAWA — The parliamentary budget officer estimates the average Canadian family will save $280 on their taxes next year thanks to the Liberal government's planned income tax cut. A one-percentage-point cut to the bottom income tax bracket was a pillar of the Liberal campaign during the spring federal election. Prime Minister Mark Carney's plan pitched annual savings of up to $825 per dual-income family. But the parliamentary budget officer says in a new analysis that the average family likely won't get that much back. A couple with a child who are both earning in the second income bracket would get closest, with $750 in average savings, but most single Canadians and seniors are expected to save less. The Liberals tabled a ways and means motion last month that puts the tax cut in place starting July 1, but legislation to enact the change is still making its way through Parliament. This report by The Canadian Press was first published June 18, 2025. Craig Lord, The Canadian Press
