A Brief Summary of Tax and Economic Platforms for the Major Parties
Posted on September 15, 2021 |
Following is a summary of the various tax (and some relevant economic) policies put forward by the 3 largest parties running in the 2021 Canadian federal election. This is intended to provide a brief overview only. If you have questions about the specifics of any of the following, please contact a representative of the party.
For your own research, the platforms can be found here:
- Liberal: https://liberal.ca/wp-content/uploads/sites/292/2021/09/Platform-Forward-For-Everyone.pdf
- Conservative: https://cpcassets.conservative.ca/wp-content/uploads/2021/09/08200659/e4cd8c0115c3ea0.pdf
- NDP: https://xfer.ndp.ca/2021/Commitments/Ready%20for%20Better%20-%20NDP%202021%20commitments.pdf
Personal Taxes
| Liberal (Incumbent) | Conservative | NDP |
| Increase eligible educator credit to 25% (from 15%) | ||
| Make a portion of childcare expenses refundable tax credits | ||
| Increase the adoption credit to $20,000 (from $15,000), and make it refundable | ||
| Special tax-free “First Home Savings Account” to be created | ||
| First-time home buyer’s credit increased to $10,000 (from $5,000) | First-time home buyer’s credit increased to $10,000 (from $5,000) | |
| Implement a renovation credit for multi-generational homes | ||
| Principal residence deduction (the tax-free sale of a home) will only apply if it was owned for at least 12 months | Promise to never tax the sale of a principal residence (i.e. keep it the unchanged) | |
| Surtax on landlords if their rent income increases too fast | ||
| 20% buyer’s tax on sale of any property (including principal residence) to anyone who is not a Canadian citizen or permanent resident | ||
| Minimum tax rule expanded to 15% on all income earned if base-level income is in the highest bracket | ||
| Fully implement the luxury tax (from the prior budget) | Will study a modified luxury tax, much more limited in scope | Implement a luxury tax, appears more limited in scope than Liberal’s plan |
| Increase the top marginal rate by 2% (to 35% from 33%) | ||
| Special wealth tax if wealth is greater than $10 million | ||
| Home appliance repair credit | ||
| Increase home accessibility credit to $20,000 (from $10,000) | Make the credit $10,000 per person instead of $10,000 per building | |
| Make the caregiver credit refundable | Make the caregiver credit refundable | |
| Special deduction of $15,000 for new health care professionals | ||
| Labour mobility tax credit (for construction workers who move to work) | Labour mobility tax credit (same as Liberal, except for the $600/year recurring credit) | |
| Career extension tax credit (for seniors who want to keep working) | ||
| Double the Canada worker’s benefit (for low-income individuals and families) and pay out in quarterly instalments instead of annually | ||
| Double the disability supplement | ||
| Increased ability to claim home care expenses for seniors | ||
| Income tax averaging for artists & cultural workers | ||
| Special credits for graduates who move North or to certain rural areas to work | ||
| Expand volunteer firefighter’s tax credit |
Corporate Taxes
| Liberal (Incumbent) | Conservative | NDP |
| Expense reimbursement for tourism businesses | ||
| Tax rates on rental property subject to review and change. Landlords also subject to tax if income increases too fast. | ||
| Increase tax rate on certain earnings over $1 billion by 3% | Permanent increase in corporate tax rate by 3%, on all earnings | |
| Increase capital gains rate to 75% (currently 50%) | ||
| Special tax on foreign tech companies of 3% of revenue of Canadian-sourced income | Increase taxes on internet giants | |
| 15% additional special tax on large businesses with windfall profits from COVID periods | ||
| Tax credit for improvements to ventilation systems in buildings |
COVID
| Liberal (Incumbent) | Conservative | NDP |
| Extend the business hiring program to March 31, 2022 | Job surge – pay up to 50% salary of new hires after CEWS ends | Unlimited extension of programs until COVID closures are done. Will also pay employer portion of CPP & EI for new and re-hired staff |
| Extend Home Expense deduction for 2 years and increase amount | ||
| Up to $200,000 in loans for impacted businesses |
Other
| Liberal (Incumbent) | Conservative | NDP |
| Provide a 5% credit for capital investments, up to $25,000 for small businesses | ||
| 25% tax credit for up to $100,000 invested in small businesses | ||
| Rebates and credits for food and tourism purchases post-COVID | ||
| $15/hour federal minimum wage, going up to $20/hour, and index it (rises with inflation) | ||
| Month-long GST holiday in the fall. No GST at retail stores | ||
| Brand new EI system, including EI for self-employed | Expanded EI, including special benefits when a province enters a recession | |
| Special tax benefits for selling shares to employees | ||
| Small penalties for first-time offences, larger for repeat offences |
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