Government of Canada’s Plan for a Strong Middle Class Brings Real Change to Saskatoon
August 16, 2016 - Saskatoon, Saskatchewan - Department of Finance Canada
The Government of Canada knows that a strong middle class means hard-working Canadians can look forward to a good standard of living throughout their lives and a better future for their children. It also understands that Canada works best when its governments come together in the interest of the people they serve.
Finance Minister Bill Morneau today met with his provincial counterpart, Saskatchewan’s Minister of Finance Kevin Doherty, to discuss shared priorities as part of the Government’s plan to put people first. This plan is making smart, necessary investments to grow the economy today while positioning Canada as a leader of tomorrow. It recognizes that when you have an economy that works for the middle class, you have a country that works for everyone.
Minister Morneau will also discuss his Government’s economic plan with the Greater Saskatoon Chamber of Commerce later today.
As one of its first actions, the Government cut taxes for nearly 9 million middle-class Canadians. Single individuals who benefit will see an average tax reduction of $330 every year. Couples who benefit will see an average tax reduction of $540 every year.
Since July 20th, thanks to the new Canada Child Benefit (CCB), nine out of ten families with children have been receiving more in child benefits from their government. On average, those families will receive about $190 a month extra for the 2016–17 benefit year. This new program will lift hundreds of thousands of children out of poverty. Compared to the child benefit system it replaces, the CCB is simpler, more generous, tax-free, and targeted to those who need it most.
In his meeting with Minister Doherty, Minister Morneau also discussed the historic agreement in principle to strengthen the Canada Pension Plan (CPP). Delivering on a commitment to Canadians to help them achieve their goal of a strong, secure, and stable retirement through an enhanced CPP, the Government will boost the income replacement from one quarter to one third of pensionable earnings, and raise the maximum amount of income subject to CPP by 14 per cent to a target of $82,700 by 2025.
Throughout their meeting, Minister Morneau underscored the Government’s commitment to bringing real change to Canadians in every stage of their lives—helping our children, our parents and our grandparents.
“When you have an economy that works for the middle class, you have a country that works for everyone. The Government’s plan puts people first and ensures that the middle class and those working hard to join it can thrive, both today and in the future. It puts more money in their pockets to spend on things that matter most to them, whether it’s helping with everyday costs like groceries or providing their children the opportunity to go to summer camp. We know that Canadians work hard and deserve the chance to succeed in every stage of their lives, from childhood to parenthood, to retirement.”
—Bill Morneau, Minister of Finance
“As promised, the government’s central focus has been the economy — investing in the most effective drivers of jobs and growth, bolstering the middle class and all those working hard just to get there. We’re helping middle-class families with the high cost of raising their kids by increasing child benefit payments for nine out of ten families, cutting taxes for the middle-class and boosting public pensions. These initiatives will create more economic growth and less inequality.”
—Ralph Goodale, Minister of Public Safety Canada
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- Budget 2016: Growing the Middle Class
Office of the Minister of Finance
Department of Finance Canada