NDP Leader Jagmeet Singh makes an announcement at Peel Basin in Montreal on March 24.Graham Hughes/Reuters
The federal NDP is proposing a suite of changes designed to ease the financial burden for many Canadians, including a tax cut for middle- and working-class families and a boost to income supports for seniors and low-income individuals living with disabilities.
New Democratic Party Leader Jagmeet Singh, who made the announcement in Hamilton on Wednesday, is working to try to bolster lagging support for the NDP. He and his party face an uphill battle ahead of the April 28 election, as a number of public-opinion polls suggest they are trailing well behind the Conservatives and Liberals. Prior to the election campaign, the New Democrats were the fourth-place party in the House of Commons.
Canadians already find the cost of living tough, Mr. Singh said Wednesday, adding people are worried that the trade war started by U.S. President Donald Trump will make this worse.
“We have a plan to fight back against that,” he said.
As part of that plan, the NDP proposes that no one who earns $19,500 or less should pay federal income tax.
In addition, under an NDP government, Canadians who make less than $177,882 would not pay taxes on the first $19,500 earned, which would result in about $505 in savings annually. The NDP also proposes seeing the basic personal income-tax amount reduced to $13,500 for individuals in higher-income brackets. There is no benefit at all for those making more than $235,632.
The party estimates that these changes would cost $10.4-billion.
The New Democrats also said the party will boost the Guaranteed Income Supplement for seniors and double the Canada Disability Benefit for low-income individuals who live with disabilities.
Currently, the disability benefit is in place to give low- and modest-income earners with disabilities up to $200 per month.
Last fall, civil-society organizations including LEAF and Amnesty International called for a more equitable benefit in an open letter that was addressed to the federal government. It called for Ottawa to increase the available amount to between $1,800 and $2,000 per month.
Mr. Singh said the changes will put more money back in Canadians’ pockets.
“It’s going to help us weather the storm of this trade war,” Mr. Singh said.
At present, it is unlikely the NDP will win the greatest number of seats in the House, based on poll projections.
However, Mr. Singh has said that he is running to be the country’s prime minister and that he will continue to make this case through the course of the campaign.
Part of his pitch includes that he believes he is the leader who will be most focused on addressing the needs of everyday people.
In that vein, the NDP said it would remove the GST from essentials, such as home heating and certain grocery items including prepared meals and diapers.
Canada already exempts sales taxes from most groceries, prescription medications and hygiene products.
The NDP estimates that the removal of the GST on additional items will save a family of four about $448 a year and its estimated price tag is $4.5-billion.
Last November, then-prime minister Justin Trudeau announced a temporary reprieve from the GST (and, in applicable provinces, from the HST) on essential items. It was in place from Dec. 14 until Feb. 15.
At the time, Mr. Singh said his party would campaign to permanently lift the GST from expenses, including certain grocery items and bills such as heating and internet.
Mr. Singh said the NDP’s plan is targeted and focused on offering middle- and lower-income families relief.