Andrew Scheer’s tax cut for the 1 percent

September 24, 2019

83 percent of tax cut will go to the wealthiest 1 percent

Mississauga, ON – Andrew Scheer’s small businesses changes proposed today are a tax cut for the 1 percent.

“Our Liberal government cut taxes for Canadian small businesses – full stop. Today our economy is strong and growing, with record-low unemployment and more than a million new jobs created since 2015,” said Liberal candidate for Mississauga—Malton, Navdeep Bains. “Andrew Scheer’s plan is a tax cut for the 1 percent. Canadians have seen what Conservatives politicians do. Andrew Scheer will cut taxes for the wealthy and cut services for everyone else.”

When Andrew Scheer says he wants to help small businesses, he’s only offering a tax cut for the 1 percent. In fact, 83 percent of the benefit he is promising today will go to the top 1 percent of earners in the country. The vast majority of small, private businesses will not be impacted and will not benefit from Andrew Scheer’s tax cut for the wealthy. Almost all of the income Andrew Scheer wants to now exempt from taxes went to the top 1 percent of Canadians.

Share of Taxable Passive Income, CCPCs, by Individual Income Range (2015)

Note: Based on passive income reported by CCPCs with active business income earned directly or through a subsidiary, and for which individual shareholders could be identified.
Source: Canada Revenue Agency, T1 (Individuals) and T2 (Corporations) universe data sets.

“Liberals cut taxes for small businesses. We lowered the federal tax rate for small business owners across the country from 11 percent to 9 percent — one of the lowest rates in the world,” said Bains. “Conservatives voted against this tax cut.”