News flash: Canada is a big country.
But this week, the Conservatives have found a way to make a few hard choices.
The federal government announced Thursday that it would cut taxes for all households, including those with taxable income of more than $200,000 per year.
And in a sign of the party’s commitment to its economic message, the prime minister promised to create 5 million jobs, including 4 million new jobs, through the “economic stimulus” package.
The government said it would create 5.4 million new private-sector jobs over five years, which would represent the biggest growth in the country since the 1970s.
But for all the good news, it comes at a cost.
The Liberals are also proposing to raise the GST from 6.3 to 7.5 per cent, an increase that would cost some of the most vulnerable Canadians, including seniors and people with disabilities, the most.
In the long run, the Liberal plan would reduce government revenue by $12.4 billion in the short term and $22.9 billion in 2023.
For most Canadians, the tax hike would come at a price.
According to a recent study by the University of Toronto, the impact on tax collections would be even greater in 2031 than in 2021, when the Liberals took office.
It estimated that the cost of the new tax hikes would be $6.1 billion in 2021 and $8.4 in 2021, as the economy would shrink and tax revenue would shrink.
The biggest losers in this plan would be low- and middle-income earners.
The wealthy and those with the most assets would see the biggest hits.
And the worst hit would be those in the lowest income brackets, who would see a big hit.
The most vulnerable are already feeling the pain.
The Conservative government is taking action in three areas: tax relief for small businesses and the unemployed, support for young people and the elderly, and a new public-private partnership to help small businesses.
These are some of a number of changes the government is making that it says are designed to help Canadians.
But the Liberals have also promised a massive $2.4-trillion package to combat climate change.
They are promising to bring back the $10.10-a-day minimum wage to $15 by 2019, and increase the GST on goods and services to 8.5 percent.
And they are promising a $4.5-billion stimulus package to build schools, hospitals and roads.
In an election campaign where the focus has been on how to keep Canadians safe, the Liberals and Conservatives are taking a step in the right direction by reducing taxes on Canadians with taxable incomes over $200.
But it’s hard to tell what kind of impact the policies would have.
With the economy already slowing, will the tax cuts have a long-term impact?
The Liberals will propose to boost personal income tax revenues by $3 billion over the next five years.
The Conservatives are proposing to hike taxes for the wealthiest Canadians by $8 billion over five months.
What about the middle class?
The Liberal plan proposes to create 4 million jobs in five years by increasing the GST rate on personal income to 7 per cent from 6 per cent.
This would generate about $6 billion in new revenue for the government, with $3.7 billion going to small businesses, $1.8 billion to small investors and $1 billion to families with children.
For the poorest Canadians, this would cost $4 billion.
But those in lower-income brackets would see their taxes rise by an average of $2,500.
The average income for households in the top 1 per cent of earners would increase by $10,000 over the five years of the plan.
Meanwhile, the average income of the bottom 20 per cent would increase less than $1,000.
What would the Liberals do with all that extra revenue?
The government estimates that the tax increase would generate $2 billion in additional revenue for provinces and territories over five decades.
And that would come in the form of higher tax revenues for businesses, with the federal government spending an additional $1 trillion over five times that period.
However, some economists think the Liberals are overstating their revenue projection.
They say the government’s estimate for increased taxes on businesses is too high.
“The Liberals have estimated that in 2029, the $2 trillion in revenue that they expect to generate from the new revenue is only $400 million,” said the chief economist at BMO Capital Markets, John Taylor.
The Liberals say the Liberals will also increase the federal GST on manufactured goods and personal services, which is the biggest item on their tax-cutting plan. “
They’re trying to make the case that it’s not enough.”
The Liberals say the Liberals will also increase the federal GST on manufactured goods and personal services, which is the biggest item on their tax-cutting plan.
In 2029 the Liberals estimate that the GST will be 7.25 per cent and the GST increase will be $200 per person. But Taylor