Liberal leadership hopeful Chrystia Freeland outlined a suite of policies Tuesday aimed at improving the cost of living for Canadians, including an income tax cut for millions of people and policies she says will lower the price of groceries and reduce credit card debt.
In a news release, the former finance minister outlined five policy planks directed at Canadians feeling a financial pinch. Affordability issues — including cost of groceries and the housing market — have been a vulnerability for her Liberal government.
Freeland’s campaign said if her bid to replace Prime Minister Justin Trudeau is successful, she will cut the second income tax bracket rate from 20.5 per cent to 19 per cent. Her team said that will save 11 million Canadians around $550 per year, or $1,100 for a couple.
The Liberal MP is also pitching lower grocery prices by capping profit margins on essentials such as eggs, milk, fruits and vegetables, canned goods and baby formula. And she’s promising to make “shrinkflation” illegal, referring to the tactic where companies reduce the volume or weight of a product but not the price.
A Freeland-led government would eliminate the GST on new homes worth up to $1.5 million for first-time buyers, she announced Tuesday.
She is also vowing to cap credit card interest rates at 15 per cent, and work toward a 10 per cent cap. Tuesday’s plan also includes a promise to build 100,000 more $10-a-day child-care spots by requiring new or renovated federal office buildings to include daycare centres.
Freeland’s campaign did not hold a news conference or answer reporters’ questions about her affordability plan.
Carney hints at middle-class tax cut
Last week, her main rival in the race, former central banker Mark Carney, hinted that he would also cut middle-class taxes but has so far offered no details or a costing plan.
Former government House leader Karina Gould, another contender in the race, said she would temporarily lower the GST to four per cent for one year. Last week she also laid out a housing strategy, which includes interest-free loans to first-time homebuyers worth up to 50 per cent of the home’s purchase price.
In the fall, Conservative Leader Pierre Poilievre promised to lift the federal sales tax on new homes sold for under $1 million.
Freeland famously took aim at Trudeau’s affordability policies and his posturing following U.S. President Donald Trump’s re-election when she resigned from cabinet late last year.
In her resignation letter she called out “costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment.”
It was largely interpreted to be a swipe at Trudeau’s plan to freeze the GST/HST for two months on some goods and send $250 cheques to working Canadians sometime in the new year.
The GST holiday comes to an end on Saturday and the cheque proposal was ultimately never introduced in Parliament.
Other Liberal leadership contenders include former MPs Frank Baylis and Ruby Dhalla.
