What Liberals are planning for federal budget, ‘middle-class tax cut’

Finance Minister François-Philippe Champagne said the government's first priority will be to pass what the Liberals are calling a "middle-class tax cut" by July 1.

The federal government does not plan to table a federal budget before the House of Commons rises this summer, the finance minister said Wednesday, drawing criticism from opposition parties of Prime Minister Mark Carney’s priorities.

Finance Minister François-Philippe Champagne said the government’s first priority will be to pass what the Liberals are calling a “middle-class tax cut” by July 1.

“That’s step one,” Champagne told reporters after a cabinet meeting in Ottawa, the first since the new ministry was sworn in Tuesday.

“Step two, you’re going to have a throne speech where we’ll outline the Canadian government’s priorities, and there will be a fall economic statement to follow. So those are really the sequence (of events) that you’re going to see.”

Champagne said the proposed tax cut will be introduced through a ways and means motion in the House of Commons that will be tabled immediately after Parliament returns on May 26.

Carney on Wednesday signed a document, which he called an “order,” that he said would deliver the tax cut.

“We promised the middle-class tax cut leading to over $800 of savings for two-income households,” Carney said.

“We are acting today on that, so that by July 1, as promised, that middle-class tax cut … will (come) into effect. We’re acting on affordability as we look to build up this economy.”