Housing is by far the most discussed element contributing to this “unaffordability crisis.” According to
data published by the Royal Bank of Canada (RBC), as a percentage of the average household income,
ownership of the average home took 35% 1 , which the CMHC approved as just slightly above what it
should be: 32% 2 of what one brings in pre-tax. In 2023, this number rose to 62% 3 , which is undeniably
unsustainable. The National Post discusses a recent report that Vancouver and Toronto 4 are “impossibly
unaffordable,” as the increase in working at home during the pandemic propagated a demand shock:
individuals wanted more space, specifically properties with gardens and yards. Moreover, the Bank of
Canada continues to raise interest rates 5 to inhibit inflation, and stringent approval processes for building
new homes have also contributed to the problem.
The Conservative Party of Canada has unveiled a new platform focused on reducing taxes for Canadians.
Party leaders argue that lower taxes will increase economic growth and put more money in the pockets of
hard working citizens.
The proposed tax cuts target both individuals and businesses. For individuals, the Conservatives aim to
lower income tax rates across all brackets. They claim this will provide immediate relief to families
struggling with the rising cost of living.
On the business side, the party plans to reduce corporate tax rates. They believe this will encourage
companies to invest more in Canada, create jobs, and boost overall economic productivity.
Critics of the plan argue that tax cuts could lead to reduced government revenue and potentially impact
public services. However, Conservative leaders maintain that economic growth resulting from the cuts
will offset any initial decrease in tax revenue.
The tax cut proposal has become a central issue in the upcoming election. Conservatives are using it to
differentiate themselves from other parties and appeal to voters concerned about their financial well-being.
As the election approaches, Canadians will need to weigh the potential benefits of tax cuts against other
economic and social priorities. The Conservative Party remains confident that their tax reduction plan will
resonate with a significant portion of the electorate.
On the other hand,
The Liberal approach seems to focus on direct government intervention and social programs, while the
Conservatives are emphasising tax cuts as their primary economic strategy.
The Liberal policies appear to address specific cost-of-living issues like housing, childcare, and
healthcare. They also focus on social issues such as discrimination and immigration.
In contrast, the Conservative tax cut plan is a broader economic approach. They argue that letting people
keep more of their income will allow them to address their individual needs more effectively.
Both parties claim their approaches will benefit Canadians, but they represent different philosophies about
the role of government in the economy and society.
Voters will need to consider which approach they believe will be more effective in addressing Canada's
current challenges and future goals.
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