Government of Canada's Plan for a Stronger Middle Class Receives Royal Assent
December 16, 2016 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is committed to the idea that when you have an economy that works for the middle class, you have a country that works for everyone.
Finance Minister Bill Morneau welcomed the Royal Assent of two important bills that strengthen the middle class. Bill C-2, which will cut taxes for nearly 9 million Canadians, and Bill C-29, which includes the indexation of the Canada Child Benefit, both received Royal Assent yesterday. These two significant bills represent more money in the pockets of middle class Canadians each year to save or spend as they see fit.
The middle class tax cut took effect as of January 2016. It supports the Government's effort to foster long-term economic growth, create jobs and help Canada's middle class prosper. Bill C-29 implements the indexation of the Canada Child Benefit. With the introduction of the much better-targeted Canada Child Benefit, about 300,000 fewer children will live in poverty in 2017 compared with 2014. Nine out of ten families will receive more in child benefits than under the previous system.
Together, the middle class tax cut and the Canada Child Benefit implemented earlier this year are delivering on the Government's commitment to help the middle class and those who are working hard to join it.
"A strong economy starts with a strong middle class. Canadians understand this, and so does the Government. Our first step to strengthen the middle class is now passed into law by Parliamentarians. We are also helping Canadian families across the country with increasing child care costs through the Canada Child Benefit, and ensuring its viability in the long term through indexation. These measures give middle class Canadians more money to save, invest and grow the economy."
- 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.
- As part of Bill C-29, indexing the Canada Child Benefit will ensure that its real value is not eroded over the long term.
- Bill C-26 also received Royal Assent, advancing the implementation of the agreement that Canada's governments reached to enhance the Canada Pension Plan (CPP) and give Canadians a more generous public pension that will help them retire in dignity.
- Once fully phased in, the CPP enhancement will increase CPP benefits by as much as 50 per cent.
- Budget 2016: Growing the Middle Class
- Fall Economic Statement 2016: A Plan for Middle Class Progress
- Government of Canada Announces Tax Cut to Strengthen the Middle Class
- Government of Canada Takes Steps to Grow the Economy
Media may contact:
Office of the Minister of Finance
Department of Finance Canada