2020- 2022 Policy Process | Green Party of Canada
Where GPC membership collaborates to develop our policies
G21-P058 End Taxation of Poverty
Submitter Name
Suzanne Lacourcière
Ratification Vote Results: Adopted
Proposal
It is proposed that the tax-exempt income for all Canadians be increased substantially. The basic personal amount should be increased to meet Canada's inflation adjusted official poverty line. At the same time, a new low tax bracket should be introduced for income up to at least twice the poverty level.
Objective
More equitable distribution of taxation through a removal of tax liability from the least able to pay.
Benefit
Low income Canadians bear a higher burden than is equitable of tax liability. By reducing their liability, their ability to contribute to society is greatly enhanced.
Supporting Comments from Submitter
For reference, the 2020 basic personal amount, claimed at line 30000 in Part B of Step 5 in the personal income tax return, the T1, is $13,229. This should be increased to at least the 2020 measure of poverty closer to $30K, and desirably higher.
Inflation erodes the purchasing power of all of our incomes. None more so than those on fixed and low incomes. It has been over 30 years since the personal income tax system was overhauled and deductions were replaced with deductible amounts. These amounts have not been increased consistent with inflation. Were that the case, the basic personal amount would not be substantially less than the recognized poverty levels in the country. It is desirable that the lower tax brackets and rates take account of poverty to enable an overall higher standard of living.
It should be noted that Canada’s official poverty line is declared as incomes that are below 50% of the nationally determined median level of income. In 2020, this sets the poverty line at incomes under about $35,000, close to three times the current deductible personal amount. About 12% of Canadians fall into this category.
Green Value(s)
Social Justice
Relation to Existing Policy
Add to current GPC policy.
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