Trudeau's Tax Hike on Canada's Richest 1 Percent Comes Up Poor
- Liberals also cut rate for those in middle-class bracket
- Moves pitched as revenue neutral will now cost C$1.4 billion
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Canada’s government is increasing taxes on high-income earners by four percentage points next year while conceding the move won’t raise as much revenue as initially planned.
Finance Minister Bill Morneau announced the change, effective Jan. 1 and a key pledge of the Liberal Party ahead of its election in October, after markets closed Monday in Ottawa. Canada will also cut taxes on middle-income earners by 1.5 percentage points, he said, and roll back annual contribution limits on tax-free savings accounts to C$5,500 ($4,065) from C$10,000 for the coming year.