A federal election will be held on September 20, 2021. We have compiled an overview of some of the tax-related policies and platforms announced by the Conservative Party of Canada, the Liberal Party of Canada and the New Democratic Party of Canada. The summary is not exhaustive. For complete details, please visit the respective parties’ websites. Links are provided at the end of this summary.
The information in this article is of a general nature and is in summary form. It may not include all the details announced by the various political parties. The tax-related policies summarized in this article are proposed and are not law.
Conservative Party of Canada
- Canada Investment Accelerator – getting companies spending money and creating jobs by providing a 5% investment tax credit for any capital investment made in 2022 and 2023, with the first $25,000 to be refundable for small business.
- Rebuild Main Street Tax Credit – providing a 25% tax credit on amounts of up to $100,000 that Canadians personally invest in a small business over the next two years, to get money flowing into main street businesses and create jobs.
- Main Street Business Loan – providing loans of up to $200,000 to help small and medium businesses in hospitality, retail, and tourism get back on their feet, with up to 25% forgiven.
- Canada Job Surge Plan – Paying 25% and up to 50% of the salary of new hires for six months following the end of CEWS.
- Increase the disbursement quota for charitable foundations to 7.5% to unlock billions of dollars built up tax-free in foundations
- Launch a comprehensive review of Canada’s tax system to improve competitiveness, bring down rates and simplify the rules
- Extend replacement property deferral to rental housing
- Change the childcare expense deduction to a refundable tax credit
Liberal Party of Canada
- Establish an anti-flipping tax on residential properties requiring properties to be held for at least 12 months
- Create a minimum tax rule so that everyone in the top income bracket pays at least 15% each year
- Introduce a tax-free First Home Savings Account that will allow Canadians under 40 to save up to $40,000 towards their first home
- Introduce a new Multigenerational Home Renovation tax credit to help families add a secondary unit to their home for an immediate or extended family member. Families will be able to claim a 15% tax credit for up to $50,000 in renovation and construction costs, saving up to $7,500
- Introduce a Career Extension Tax Credit to help seniors who want to stay in the workforce
- Introduce a new Labour Mobility Tax Credit to allow workers in the building and construction trades to deduct up to $4,000 in eligible travel and temporary relocation expenses giving them a tax credit of up to $600 a year
New Democratic Party of Canada
- Increase the capital gains inclusion rate to 75%
- Increase top marginal tax rate by 2% to 35%
- Introduce a wealth tax of 1%
- Put in place a luxury goods tax on things like yachts and private jets
- Roll back the Conservatives’ corporate income tax cuts by three percentage points to 2010 levels
- Ensure internet giants pay corporate tax in Canada
- Introduce a temporary COVID-19 excess profit tax that puts an additional 15% tax on large corporate windfall profits during the pandemic
- Boost compliance funding to Canada Revenue Agency’s enforcement section dealing with international and corporate taxation
- To help small businesses, provide a hiring bonus to cover employer portion of CPP and EI for new hires. Also, continue subsidies until businesses can reopen
- Extend federal incentives for zero-emission vehicles (“ZEVs”) and provide a break for working families by waiving the federal sales tax on ZEV purchases
Resources
Conservative Party of Canada – Recovery Plan
