Carney and Poilievre promise tax cuts on Day 1 of election campaign
Liberals pitch 'middle-class tax cut' while Conservatives say they'd end carbon tax
Canada's main federal leaders are kicking off the election campaign by invoking U.S. President Donald Trump's trade war and promising financial relief for Canadians affected by his past and future tariffs.
Moments after meeting with Gov. Gen. Mary Simon to begin the election period, Liberal Leader Mark Carney promised a "middle-class tax cut" by trimming one percentage point off the lowest income tax bracket.
"The best way we can deal with this crisis is to build our strength here at home and help people who will be hit hardest by these tariffs," Carney told reporters outside Rideau Hall in Ottawa.
In a press release, the Liberal Party said more than 22 million Canadians would benefit from their proposed tax cut, which they said would save two-income families up to $825 a year.
Carney did not specify how much the tax cut would cost the government.
Across the Ottawa River in Gatineau, Conservative Leader Pierre Poilievre reiterated his promise of a tax cut on "work, investment, energy and homebuilding."
Poilievre also promised to repeal the carbon tax in its entirety — a move that goes further than Carney, who signed a directive after taking office that effectively removed the consumer carbon tax. However, the legislation remains in place and large emitters still pay a price on carbon.
"Mr. Carney's carbon tax and Donald Trump's tariffs will destroy Canadian industry, pushing jobs south — but I won't let that happen," Poilievre told reporters.
The Conservative leader also promised in February to name a "tax reform task force" of entrepreneurs, investors, farmers and workers to design a tax cut that would lower taxes on energy, work, homebuilding and investment.
Trump placed 25 per cent tariffs on Canadian steel and aluminum less than two weeks ago, which prompted Canada to retaliate with tariffs on $29.8 billion worth of American goods. Additional tariffs are expected from the United States on April 2.
NDP Leader Jagmeet Singh kicked off his campaign in Ottawa. He criticized Trump's "illegal trade war," contrasted his party from the Liberals and Conservatives and said "only New Democrats can be trusted to look out for you."
"We're not here to patch up a broken system for the next storm," Singh said. "We're here to build it — stronger, safer and fair for everyone."
The parties and managing finances
None of the federal parties have released detailed plans for managing government spending or paying for their tax cuts, but they have outlined some ideas.
Before becoming Liberal leader, Carney told CBC News his government would balance its operational spending over the course of the next three years.
According to a policy backgrounder released by Carney's campaign during the Liberal leadership race, transfers to individuals like pensions and child benefits as well as transfers to provinces and territories would be maintained.
"A Mark Carney-led government's fiscal policy will focus first on reining in wasteful and ineffective government spending," the Carney campaign said during the Liberal leadership race.
Poilievre has said he would cut the housing infrastructure fund and the housing accelerator fund, defund the CBC, shutter the Canadian Infrastructure Bank and "dramatically" reduce foreign aid.
A Conservative government would also reduce the size of the public service and its use of outside contractors.
Last November, the NDP proposed scrapping the GST on "life's essentials" like home heating, prepared food, internet and mobile bills, diapers and children's clothing. The party said it would pay for the proposal with an excess profit tax paid by large corporations.
On Friday, the NDP also criticized Carney's promise to cancel the proposed hike to the amount of capital gains that are subject to tax. Singh said Carney was "choosing to open another lucrative tax loophole for those at the very top."
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With files from Aaron Wherry