"The government is guided by its conviction that the economy is only truly strong when it serves everyone," King Charles said in the Senate chamber. (Credit: Chris Jackson/Getty Images/Postmedia files) King Charles III said Canada’s mission is to build the “strongest economy in the G7” as he laid out the federal government’s agenda in the first speech by a Canadian monarch to open Parliament since Queen Elizabeth II in 1957. Amidst a trade war with the United States and various headwinds facing Canada’s economy, here are the top three economic priorities for the Liberal government in Canada’s 45th Parliament.
Middle-class tax cut The first order of business for the federal government will be introducing legislation to pass a middle-class tax cut since Prime Minister Mark Carney faces pressure to tackle the affordability issues facing many Canadians. “The government is guided by its conviction that the economy is only truly strong when it serves everyone,” King Charles said in the Senate chamber. “Many Canadians are struggling to get ahead.
The government is responding, reducing middle-class taxes and saving two-income families up to $840 a year.” The tax cut will cut the marginal tax rate on the lowest income tax bracket by one percentage point and will impact 22 million Canadians. The measure promises to deliver $27 billion in tax savings for Canadians over the next five years. As for how this plays into Canada’s fiscal position, Canadians will have to wait.
Carney has faced criticism by economists that his government does not plan to present a spring budget, instead opting to provide an update of Canada’s finances during the fall session. One Canadian Economy Carney has promised “the biggest transformation” of the Canadian economy since the Second World War, a promise that was reiterated in the throne speech. One way the Liberal government plans to boost Canada’s economic competitiveness is by tackling the country’s internal trade barriers.
In the face of Trump’s tariffs, the removal of these barriers could boost Canada’s gross domestic product (GDP) by as much as $200 billion a year. “The government will introduce legislation to remove all remaining federal barriers to internal trade and labour mobility by Canada Day,” King Charles said. “Numerous premiers have already taken vital steps to break down provincial and territorial barriers to trade.” Ontario has led the way on this file, signing memorandums of understanding to tear down interprovincial trade barriers with Nova Scotia, New Brunswick and Manitoba.
The Committee on Internal Trade, which oversees the implementation of the Canadian Free Trade Agreement, has until June 1 to provide a plan for Canada-wide credential recognition. But challenges remain, with Nova Scotia adding amendments to its own legislation to preserve provincial regulatory authority over all workers.
