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An Act respecting certain affordability measures for Canadians and another measure

Summary

  • Lowers the marginal personal income tax rate in the lowest bracket to 14.5% in 2025 and 14% from 2026 onward.
  • Creates a temporary GST new housing rebate for first-time home buyers on new construction to improve affordability.
  • Repeals the federal fuel charge (Part 1 of the Greenhouse Gas Pollution Pricing Act) and related Fuel Charge Regulations on a phased timetable starting in 2025, with full repeal by 2035.
  • Establishes a national, exclusive privacy-policy regime for federal political parties, requiring a public policy and privacy officer while exempting parties from provincial/territorial privacy compliance obligations.

Builder Assessment

Vote Yes

The bill materially reduces tax burdens and regulatory costs and introduces measures likely to stimulate work, housing construction, and resource-sector activity. While there are competitiveness risks from eliminating carbon pricing, the overall thrust aligns with the tenets emphasizing economic freedom, productivity, tax reform, and large-scale prosperity.

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Principles Analysis

Canada should aim to be the world's most prosperous country.

Income tax cuts and lower energy-related costs can increase disposable income and potentially raise growth, supporting higher national wealth.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

Cuts to personal taxes and repeal of the fuel charge reduce government-imposed costs, and the elections privacy changes reduce overlapping compliance burdens.

Drive national productivity and global competitiveness.

Lower taxes and energy costs may improve productivity, but removing carbon pricing could weaken incentives to adopt efficient low-carbon tech and expose exporters to foreign carbon border measures.

Grow exports of Canadian products and resources.

Reduced input costs can aid resource and manufacturing exports, yet lack of carbon pricing may invite carbon-related tariffs that could offset gains.

Encourage investment, innovation, and resource development.

Lower personal taxes and eliminating the fuel charge reduce costs and uncertainty for resource development; the housing rebate can spur residential construction activity, though it may do less for broad-based innovation.

Deliver better public services at lower cost (government efficiency).

Dismantling the federal fuel charge regime should lower administrative complexity and costs; the housing rebate adds some admin but is temporary.

Reform taxes to incentivize work, risk-taking, and innovation.

Reducing the lowest bracket directly improves work incentives at the margin and increases after-tax returns to effort for millions of workers.

Focus on large-scale prosperity, not incrementalism.

Across-the-board rate cuts and phased repeal of the fuel charge are sizable policy shifts with economy-wide effects, not minor tweaks.

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PartyLiberal
StatusAt second reading in the House of Commons
Last updatedJun 5, 2025
TopicsEconomics, Housing and Urban Development, Climate and Environment
Parliament45