Government of Canada Takes Steps to Grow the Economy
January 29, 2016 – Ottawa, Ontario – Department of Finance
Finance Minister Bill Morneau welcomed today the beginning of second reading debate in the House of Commons on Bill C-2, an important step towards implementing a middle class tax cut that will benefit about 9 million Canadians each year.
Minister Morneau emphasized that Bill C-2 is the first step in the Government’s plan to put in place the conditions to create long-term growth, create jobs and help Canada’s middle class prosper.
The Government of Canada remains focused on growing the national economy as it prepares to deliver a federal budget that will strengthen the middle class and those working hard to join it.
In the upcoming budget, the Government will introduce the new Canada Child Benefit. Payments under the Canada Child Benefit would begin in July 2016. In contrast to the existing system of federal child benefits, the Canada Child Benefit would be simpler, more generous, tax-free, and better targeted to those who need it most.
Together, these measures will put more money in the pockets of Canadians to save, invest and grow the economy.
“Our Government has a plan to grow our economy, strengthen the middle class, and help those working hard to join it. When middle class Canadians have more money in their pockets to save, invest and grow the economy, we all benefit. The Government’s middle class tax cut is the first step in our plan, and it provides relief to about 9 million Canadians.”
– Bill Morneau, Minister of Finance
- Bill C-2 reduces the 22-per-cent personal income tax rate to 20.5 per cent. Single individuals who benefit will see an average tax reduction of $330 every year, and couples who benefit will see an average tax reduction of $540 every year.
- This middle class tax cut will provide about $3.4 billion in annual tax relief to about 9 million Canadians.
Office of the Minister of Finance
Department of Finance