Thank you, Madam Chair. It's good to be back at this committee. What did I miss? I am teasing.
I will speak briefly to the motion. Essentially, NDP-1 proposes a new federal income tax bracket of 37% on taxable income over $1 million per year. The new tax bracket would raise an estimated $1.3 billion in 2025, affecting the top 0.135% of tax filers, or about 43,000 people.
This revenue would partially offset the $28.24 billion cost, over five years, of reducing the lowest personal income tax rate from 15% to 14%, a measure that disproportionately benefits higher-income Canadians.
According to the Parliamentary Budget Officer and independent analysts, the average savings from the tax cut are significantly greater for wealthier individuals and families, with low-income Canadians receiving minimal or no benefit. Only 14% of those living in poverty will see any gain, averaging just $11 annually compared to $310 for the richest 10%.
When looking at the various forms of census families, the average savings range from $50 a year for low-income single seniors to $750 for high-income couples with children.
Canada's tax system has become increasingly regressive. In fact, a recent report titled “Canada's shift to a more regressive tax system, 2004 to 2022” found that the top 5% of Canadians were paying a lower overall tax rate than the bottom 95%. The top 1% is paying an even lower rate.
Finally, Madam Chair, this amendment helps to restore progressivity to Canada's tax system. It ensures that those most able to contribute do so, and it better aligns the proposed tax cut with its stated goal of supporting the middle class.
Thank you for allowing me to move this motion.