The True Post (Web News) According to a recent report by the Parliamentary Budget Officer (PBO), the proposed income tax cuts announced by the Liberal government will save the average Canadian family about $280 annually next year.
However, these savings can vary based on income, family status and other factors. The Liberal government promised during its election campaign to reduce the tax rate on the first $57,375 of taxable income from 15% to 14.5% in 2024 and 14% in 2025. This policy will take effect on July 1, 2025, so the 2025 tax savings will be partial, with the full benefit reflected in 2026.
According to Yves Giroux, parliamentary budget officer for different income groups: The average taxpayer will save about $90 at the individual level in 2025, while this saving will increase to $190 in 2026. Dual-income couples who have one child and fall into the second income bracket will benefit the most, saving an average of $750 per year. High-income single people without children are expected to save an average of $350. Seniors in the first income bracket will only save $50 per year. Single parents will save an average of $140. Impact on low-income people The report pointed out that low-income people will benefit less from this tax cut because they already benefit from multiple tax credits, which reduce their taxable income.
The Liberal government’s policy was part of its 2025 election pledges, and was billed as a major fiscal relief package. However, the Conservative Party has criticized the proposal, arguing that the tax cuts are “insufficient” and do not effectively ease the burden on the middle class. In short, the Liberal government’s new tax policy will undoubtedly benefit some groups, especially middle-income families. However, many low-income citizens and seniors will see limited benefits from the policy.