In 2015, after years of slow economic grow and stagnant wages, Canadians chose a plan that would put their needs first — a plan to help strengthen and grow the middle class, with more support for people working hard to join it.
As part of that plan, the Government asked the wealthiest Canadians to pay a little bit more so that it could cut taxes for the middle class. Three years later, more than nine million Canadians are better off — with average tax savings of nearly $1,000 since 2016.
Today in Amherstview, Ontario, Member of Parliament for Hastings—Lennox and Addington, Mike Bossio, held a town hall and toured the new Amherstview Community Market to talk about what those savings have meant for the people he represents. More than 24,000 people in riding have had their taxes lowered because of the middle class tax cut, with the savings helping drive economic growth and create new jobs.
On top of the middle class tax cut, the Government also created new benefits to support those struggling with the rising costs of living — such as parents, seniors, young people and workers.
One of those benefits, the Canada Child Benefit (CCB), has helped 9 out of 10 Canadian families save more money. A typical family of four is now $2,000 better off each year than before 2015 thanks to the CCB and middle class tax cut.
“Investing in middle class Canadians has grown the economy faster than any other G7 country, caused wages to outpace inflation and driven poverty and unemployment rates to historic lows. At a time when Canadians are worried about the future of work and the effects of climate change, now is no time to cut programs or pull back. It’s time to double down on what works, helping even more Canadians save, find good jobs and prepare for the future.”
-Mike Bossio, Member of Parliament for Hastings—Lennox and Addington
- In 2016, the Government cut taxes for the middle class by reducing the 22 per cent personal income tax rate to 20.5 per cent — saving individual Canadians, on average, $1,000 since it was introduced. For couples, savings were greater than $1,600.
- In 2018, middle class single parents and one-earner couples with children kept about 98 per cent of what they earn after taxes according to the Organisation for Economic Co-operation and Development.
- To pay for the middle class tax cut, the Government asked the wealthiest one per cent of Canadians — those making more than $210,000 every year — to contribute a little more.
- For the 2019-20 benefit year, on average, families benefitting from the Canada Child Benefit will receive around $7,000 — an amount that will continue to rise with the cost of living.