NDP proposes boost to untaxed income threshold, removal of GST from ‘essentials’

By: David Baxter, The Canadian Press Posted: 9:38 AM CDT Wednesday, Mar. 26, 2025

HAMILTON - The federal NDP is proposing a series of tax breaks to help Canadians deal with the financial impact of U.S. tariffs.

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HAMILTON - The federal NDP is proposing a series of tax breaks to help Canadians deal with the financial impact of U.S. tariffs.

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Hey there, time traveller!
This article was published 26/03/2025 (194 days ago), so information in it may no longer be current.

HAMILTON – The federal NDP is proposing a series of tax breaks to help Canadians deal with the financial impact of U.S. tariffs.

Under the plan put forward by NDP Leader Jagmeet Singh, anyone making less than $177,882 would not pay taxes on the first $19,500 they earn, saving them about $505 annually.

For context, in the 2025 tax year, the basic personal amount — the sum on which you do not pay federal income tax — ranges from $14,538 to $16,129, depending on your overall income.

NDP Leader Jagmeet Singh, right centre, jumps next to NDP candidate Monique Taylor, left centre, as he attends an event during a federal election campaign stop in Hamilton on Tuesday, March 25, 2025. THE CANADIAN PRESS/Nathan Denette

Under the NDP’s plan, people in high-income brackets would see their basic personal amount reduced to $13,500, while those with incomes over $235,632 would pay tax on everything they earn.

The NDP estimates these tax measures would cost the federal government $10.4 billion.

The party said it would cover the cost by ensuring the Canada Revenue Agency enforces corporate tax compliance.

The party is also proposing to double the Canada disability benefit at a cost of $3 billion and to increase the guaranteed income supplement for seniors.

New Democrats say they would remove the GST from “essentials” such as children’s’ clothing, heating bills and pre-made grocery meals, a promise they estimate would cost the federal government $4.5 billion and save the average family of four $448 annually.

To help pay for all this, the NDP would restore the capital gains tax increase introduced by the Liberals last year. Liberal Leader Mark Carney cancelled the capital gains tax hike before the election was called.

The NDP cited an estimate from the parliamentary budget officer that said the capital gains tax increase would bring in $17.4 billion over the next five years.

— With files from Craig Lord in Ottawa and Ritika Dubey in Toronto

This report by The Canadian Press was first published March 26, 2025.