Proposed tax cuts will benefit working people, but also high income earners

The federal election campaign is well underway, and the leaders of the Liberal and Conservative parties are both proposing tax cuts for the lowest income tax bracket. Income up to $57,375 is currently taxed at a rate of 15%, and Conservative leader Pierre Poilievre has proposed a 2.25% reduction to this rate. For his part, Liberal leader Mark Carney is proposing a 1% reduction. In either case, the tax savings do not just benefit the lowest income earners. Anyone who earns more the personal deduction amount -- $15,705 in 2024-- would save money on their taxes. But those who make $57,375 or more will save the most, and even those in the highest tax brackets will benefit. “The tax cuts will appeal to many voters,”says Prof. Preetika Joshi in an interview with the Financial Post. “But it is a significant price if you are going to be helping every single Canadian who may or may not need the help. The real question comes down to the policy objective: Is this meant to help everybody?