When Prime Minister Mark Carney announced what he called a middle-class tax break, it harkened back to the days when his predecessor touted efforts to boost the middle class and those hoping to join it. Like many slogans, that one fell flat. However, Carney’s reduction of the basic personal income tax rate from 15% to 14% is welcome news.
It won’t leave as much cash in Canadians’ pockets as the government claims, but every little bit helps these days. Most of us will benefit — but not enough to make a noticeable difference in our lives. There is a significant discrepancy between the government’s figures and those of the Parliamentary Budget Officer. While it’s not unusual for those two bodies to differ in their fiscal analysis of various issues, this gap is wide.
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