Much of this spending would be offset by $ 166 billion in revenue generated over the same period through a series of new taxes and other measures targeting high net worth individuals and large profitable businesses. “I am proud to say that we are the only party that has a plan that will ensure that we are not going to impose an additional burden on working people, the middle class and small businesses,” said NDP Leader Jagmeet Singh. journalists.
“Our plan is the only one with a credible vision for [increase] significantly and substantially so that we can invest in the programs people need, the help people need while putting us in a better position to reduce our debt. “
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The calculation, which is in part based on projections by the Parliamentary Budget Officer (PBO), estimates how much the NDP platform promises would cost over the next five years, and how much revenue the new tax measures would bring to federal coffers. .
He attaches specific dollar projections to the political commitments contained in the NDP platform, which the party released earlier this summer, but which has been criticized as being long in ambition and lacking in detail.
The publication of the cost of the platform comes on the second day of advance polls, with nine days left in the campaign before polling day.
No immediate plan to regain balance
The NDP’s quantified platform provides for $ 40 billion in additional spending for 2021-2022. The cost calculation projects a large deficit of $ 145 billion in 2021-2022 which would gradually decrease to reach $ 34 billion in 2025-2026.
There is no immediate plan to return to balanced budgets included in the NDP platform, but party officials point to the decline in the debt-to-GDP ratio – which would drop from 48% in 2021-2022 to 45 , 8% by 2025-2026 – as an indication that the party has a clear path to balance.
According to party officials speaking on the merits, the NDP’s promises go beyond what was contained in the 2021-2022 budget proposed by the Liberal government and passed by Parliament earlier this year.
Unlike the Conservative Party platform, which proposes to rescind the Liberals’ onerous promise to spend $ 30 billion to establish a national child care program, the NDP intends to honor existing agreements the Liberals signed with several provinces and complete the construction of a national system.
The NDP’s costliest item is $ 68 billion in health care spending over the next five years, which would fund universal prescription drug coverage, expand long-term and home care options, and cover dental and mental health costs. for many Canadians at the bottom of the income scale.
The party is also proposing to spend $ 26 billion to fight climate change and support workers who may need to pull out of heavily polluting industries such as oil and gas.
In addition, the party would redirect $ 35 billion already budgeted for projects with the Canadian Infrastructure Bank to a “climate bank”, which would have a mandate to stimulate investments in renewable energies, energy efficiency and low carbon technologies.
An additional $ 30 billion would be spent on reconciliation efforts with Indigenous peoples. More than half of that amount would be invested to get the federal government to comply with a Canadian Human Rights Tribunal ruling by compensating First Nations families and children who have been taken from their homes and placed in the system. child protection.
Ambitious spending, ambitious income generation
Below are the measures to increase revenue and the amounts each party expects each to bring in:
- $ 60 billion through an annual tax of 1% on households with assets greater than $ 10 million.
- $ 44 billion by increasing the capital gains inclusion rate from 50% to 75%.
- $ 25 billion by increasing the corporate tax rate from 15% to 18%. This would only apply to companies that make more than $ 500,000 in profit.
- $ 14 billion via a “surplus profit tax” on companies that made large profits during the COVID-19 pandemic.
- $ 12 billion by cracking down on tax havens.
All of the above revenue items have been assessed by the PBO.