Quebec Should Announce An Income Tax Cut Today — Here's How Much You Could Save
The CAQ has made some big promises.
The Quebec government is presenting its 2023-2024 budget proposal Tuesday and, if the CAQ keeps an election campaign promise, it should include a Quebec tax cut.
A tax cut was the core commitment in the CAQ's proposed "anti-inflation shield," a set of measures aimed at capping government fees and giving residents an infusion of cash. The government has already enacted two other proposed measures in the "shield," one-time $400 to $600 payments for people making under $100,000 and a 3% limit on Hydro-Québec rate increases.
Specifically, the CAQ campaigned on a 1% income tax reduction for the first two tax brackets. It said such a cut could amount to as much as $810 in savings for targeted households.
The party also committed to maintaining that reduction for the duration of its mandate, which, it added, could total a loss of $7.4 billion in government revenue over four years.
Currently, Quebec's first two brackets call for a 15% tax on residents' first $49,275 of taxable income and a 20% tax on income between $49,275 and $98,540 in the 2023 tax year.
In addition to that 1% reduction, the CAQ promised an income tax rate decrease of 0.25% for the first two brackets every subsequent year until 2032, which the party said could mean a further $5 billion in savings.
Premier François Legault said in August 2022 that his party was "committed to making a significant tax cut."
Finance Minister Éric Girard announced Tuesday that the theme of the 2023 budget is Un Québec engagé, "A committed Quebec."
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