Canadians are heading to the polls on April 28th. Considering all the uncertainties we’re facing right now, this is a particularly important election. The next government will have a significant impact on everything, down to our way of life. Candidate platforms consist of many topics, we’re diving into the three with, arguably, the greatest immediate impact on our bank account: the trade war/US relations, affordable housing, and taxes/ cost of living.
Trade war and US relations
Conservative Party
Conservative leader Pierre Poilievre has promised to continue retaliatory tariffs and approach the US and Mexico to renegotiate the CUSM Agreement. This would coincide with requesting a pause on tariffs while the negotiations are happening.
Poilievre has also said he will move forward with a “Canada First” mentality. In particular, he wants to reduce the energy sector’s reliance on the US. As part of this movement, he’s made 5 promises to the energy sector:
- Repeal the “No-New-Pipelines” Law and the Tanker Ban.
- Six-Month Approvals.
- Scrap the Energy Cap.
- Axe the Industrial Carbon Tax.
- Indigenous Loan Guarantees.
Liberal Party
For the immediate future, Prime Minister Carney has announced a “stand firm” and “lighten the load” approach. He’s open to renegotiating the CUSMA but has been clear that supply chain management is off the table, calling out the auto and dairy industries in particular. Carney plans to continue retaliatory tariffs until the US removes their tariffs permanently. Along with that, he plans to set aside a $2 billion fund to support the bank accounts of the people and industries hit most by tariffs.
Carney’s long-term vision includes strengthening trade agreements with other countries. He also plans to work with provinces to ease the burden of operating a business within Canada. For example, he would like to adopt national standardized licensing for in-demand jobs like healthcare, trades, and trucking. Allowing workers in these jobs to work wherever the work is needed most within Canada without the time and cost of re-certifying.
Lastly, Carney has promised to create a “First and Last Mile Fund.” This fund will support our most critical mineral and energy resources and projects, lessening our reliance on outside sources.
NDP
Jagmeet Singh, leader of the NDP, says he will remain firm on retaliatory tariffs. He promises to allocate all tariff money to those impacted most by the trade war. In addition, he wants to remove the GST on Canadian-made cars and trucks. Singh also plans to issue five- and 10-year “Victory bonds” with a 0.25 percent higher return than other GICs. Lastly, the NDP wants to prioritize Canadian workers and businesses by giving them first rights to procurement contracts.
Green Party
Green Party leader, Elizabeth May, wants to focus on strengthening trade bonds with other allied countries. This would be a unified retaliatory response to the US’ tariffs and re-evaluating intelligence sharing. She would also implement measures to protect Canadians, such as preventing coerced consent to Canada being annexed, eliminating the Safe Third Party Agreement with the U.S., and banning certain U.S. food and drug imports.
Tax cuts and cost of living
Conservative Party
The foundation of the Conservative Party’s tax platform is a 15% reduction in income taxes over two years. Meaning by 2027, the tax rate will be down to 12.75%. Older Canadians will get a couple of extra incentives to pad their bank accounts by continuing to work. The tax-free earning threshold would be boosted from $24,000 to $34,000 for them, and the RRSP contribution age limit would be increased from 71 to 73. Trade workers will also get a boost by way of a bigger tax cut for when they travel to work.
The CP also wants to encourage Canadians to save by offering an extra $5,000 in TFSA contribution room if you invest it in Canadian companies. Similarly, he wants to defer capital gains tax if reinvested in Canada.
Poilievre is proposing aggressive measures to stop tax evasion. He’ll give extra funding to the CRA for “cracking down on offshore tax havens”. He also wants to use a shaming website to call out wealthy corporations that don’t pay their fair share of taxes. Lastly, Poilievre plans on boosting the Offshore Tax Informant Program by rewarding whistleblowers with up to 20% of the funds recovered.
Liberal Party
The Liberty Party has already cut the Carbon Tax for consumers and cancelled the increase in the Capital Gains Tax. Their main tax platform, though, is a 1% decrease in income tax. Which, they estimate, would save each Canadian $412 per year.
Carney also wants to make it easier for people to access Employment Insurance. He wants to waive the one-week waiting period, raise the regional unemployment rate percentages, and eliminate the 6-month waiting period for those with a severance package.
For older Canadians, Carney wants to increase the GIS by 5% for one year and reduce minimum RRIF withdrawals by 25%.
NDP
The NDP has several tax and cost-of-living adjustments it wants to implement. With them in charge, the basic income tax threshold would be changed in two ways. For those in the top two tax brackets, the basic income bracket threshold would be $13,500. For all other tax brackets, the basic income level would be raised to $19,500. The result being that higher income earners would pay more tax because their basic income tax amount is lower.
Another big part of the NDP tax platform is to remove taxes on more essentials, like diapers, phones, internet, and heating. Along with that, they want to put an emergency price cap on food staples and increase taxes and regulations on the grocery chain sector.
Employment Insurance would get a big overhaul under the NDP. They want to increase replacement income to ⅔ of insurable earnings. The program would also remove the waiting period and expand the program to 50 weeks. Lastly, they would standardize the qualifying hours to 360.
Other NDP plans include:
- Implementing the new proposed Capital Gains Tax
- Doubling the Canada Disability Benefit
- Boost the GIS
- Expand the $10/day daycare, pharmacare, dental care, and mental health programs
Green Party
Under May’s direction, the Green Party wants to even out the income tax’s hit to bank accounts by raising the basic income bracket to $40,000 and stopping big corporations from exploiting loopholes to avoid paying taxes. They also plan to include coverage for elder care and miscarriage under paid leave.
Affordability and housing
Conservative Party
When it comes to making housing more affordable, Poilievre and the Tories plan to axe the GST on sales of new homes under $1.3 million. They also want to incentivize municipalities that support home building. All municipalities would be asked to increase their building by 15%. Any tax savings municipalities offer builders that result in outdoing that goal will be matched dollar for dollar up to $25,000 per home.
To support builders, they would also sell off 15% of federal buildings to free up land for builders to build on. Along with that, they will fine municipalities partaking in the NIMBY (not in my backyard) movement in an effort to prevent building.
Liberal Party
A Carney parliament plans to eliminate GST on the sale of homes under $1 million for first-time home buyers and those homes that underwent major renovation. They will also implement an oversight agency to oversee the construction of affordable housing. This agency will be responsible for $25 billion in debt financing, $1 billion in equity financing, and $74 million in housing infrastructure improvement.
All these funds will be used to:
- Support builders offering “innovative Canadian prefabricated home builders.”
- Train skilled workers.
- Reduce costs like fees, levies and taxes
- Cut through red tape like zoning restrictions and design restrictions.
With all this in place, they hope to double the rate of residential construction within 10 years. In addition, they plan to put a particular focus on non-profit community housing and homes for First Nations, Inuit and Métis peoples.
NDP
Knowing that housing costs are the biggest hit to our bank accounts, NDP party leader Jagmeet Singh, has focused a lot on the affordable housing crisis. They’re addressing the issue in a few different ways. They plan on allocating $16 billion to two new initiatives, Canadian Homes Transfer and the Communities First Fund. Both these programs will focus on supporting efforts and removing barriers to building affordable housing. They want to release enough crown land to build 100,000 homes within the next 10 years. The Canadian Mortgage and Housing Corporation would be revamped to include offering low-interest loans that are backed by public funds. They say that all this, along with a ban on foreign buyers and tax implications for those who resell within 5 years, would allocate enough resources to build 3 million homes by 2030.
The NDP hasn’t forgotten about renters, they plan to help them by:
- Supporting the implementation of more rent-controlled units.
- Allocating more money to the Rental Protection Fund.
- Preventing corporate landlords from buying existing affordable housing.
- Terminate low-interest federal loans and mortgage loan insurance for corporate landlords that gouge tenants.
Green Party
The Green Party has placed most of their affordable housing platform focus on updating laws and regulations. They will:
- Crack down on the technicalities that allow criminals to use the real estate market to launder money.
- Revamp tax rules for Real Estate Investment Trusts so they pay their fair share.
- Prevent single-family homes from being bought up by corporations.
- Ensure that public housing stays affordable by implementing covenants.
Wrap up
Putting thought into which party you vote for is always important, but this election brings with it a whole new level of importance. All the uncertainties we’re facing make this one critical. Every election has an impact on our bank accounts. The impact of this election will ripple out further. Much further. You will, no doubt, encounter many people sharing their opinion of who you should vote for. In the end, the most important thing to do is to vote. Let your voice be heard.
It’s hard to imagine any party arguing against the fact that Canadians are struggling financially. Many Canadians are just a couple of hundred dollars away from being literally broke. If you’re one of these people because your debt has become unmanageable, we can help by setting you up with a debt relief plan. Call for a free consultation to learn more about our program.
