Mark Carney Tax Cut: Good News for Canadians: Mark Carney Signs Order Cuts Taxes for Middle Class Citizens, Starting July 1

New Prime Minister Mark Carney held his first cabinet meeting on Parliament Hill on Wednesday. After the meeting, Carney signed a symbolic order to show that his priority was middle-class tax cuts.

He asked his ministers to prepare for tax cut bills once parliament returns later this month.

Carney said the goal is to start the tax cut, as promised. The tax cut will allow many Canadians to reduce personal income tax by 1%.
The 22 million Canadians who pay federal income tax will benefit. Carney said that some families can save up to $840.

Finance Minister François Philip Champagne called the move “very important”. Champagne said it sent a clear message that such tax cuts are the government’s top priority.

But to cut tax cuts, parliament must approve it, Carney said. Since the Carney government has only a few seats than the majority, they need to get another 2 votes to pass the law. Champagne said the Liberal Party will introduce a way and means to formally propose a tax cut. He hopes the opposition will support it.

New Cabinet Team

Before the cabinet meeting, the new minister and state secretary said they were happy to start work. Carney’s cabinet was sworn in on Tuesday.

This is a two-tier system with 28 core ministers and 10 state secretaries. He put some experienced ministers in key roles, but also brought 24 new friends.

Wayne Long, from New Brunswick, is now Secretary of State for the Canadian Taxation Agency and Financial Institutions.

Long said he believes the government will be more like a company, which is “long overdue”. He promised to speak freely on behalf of his people.

Long is known for criticizing former PM Justin Trudeau. He once said that if Trudeau stayed, he wouldn’t run anymore.

Asked by reporters whether Trudeau had helped him get the new job, Long said: “Not at all.”

He said Carney didn’t like it, but chose the qualified one.

Jill McKnight, of British Columbia, is now the Secretary of Veterans Affairs and Deputy Secretary of Defense.

New Minister of International Trade Maninder Sidhu said Sidhu was elected in 2019 and was once the parliamentary secretary of international development.

Longtime British Columbia MP Stephen Fuhr is now the Secretary of State for Defense Procurement. He said he would find out his priorities at the cabinet meeting.

Tim Hodgson is an advisor to the Bank of Canada and former CEO of Sachs and is now the Minister of Energy and Natural Resources. Hodgson said he was ready to build, dig and do a lot of work.

He also said he would work with provinces, indigenous partners and industries. Hodgson added that he would soon head west and start the work.

The Parliament is scheduled to return on May 26, and the next day, King Charles III will give a speech from the throne.

Thereafter, as Finance Minister Champagne confirmed, the government will take further economic steps.

He explained that the first step was a middle-class tax cut, which was already underway. The second step will be the throne speech itself, and the government will outline its new priorities.

There will be a fall economic update to come up with more detailed plans.

Conservative leader Pierre Poilievre criticized Carney’s team on Wednesday. He said it was wrong for them to have a fall economic update instead of a spring budget.

Poilievre said families are struggling and businesses are under U.S. tariffs. Liberals avoided responsibility, he said. He also said Carney, who should be a “serious economist”, only gave Canadians “delays and dysfunction”.

FAQ

Q1. What was Mark Carney’s first big plan as prime minister?
He wants to reduce middle-class income tax.

Q2. Will tax cuts happen immediately?
No, it needs to be adopted by Parliament first.