Justin Trudeau has recently been appointed Canada’s new Prime Minister, replacing 10-year veteran Stephen Harper, and rejuvenating Canadian spirit with an ambitious plan to continue economic growth and improve Canada’s financial situation. Trudeau’s intends on investing billions of dollars into Canada’s infrastructure, and increasing taxes on Canada’s top 1% income earners.
One of the concerns with Trudeau pouring billions into Canada’s outdated infrastructure is that Canada’s balance would return to a deficit. However, despite this concern, it will also provide enormous opportunities for construction and engineering companies that will help grow and stabilize Canada’s economy further. Trudeau needs to determine if Canada would be able to generate enough income to operate after investing into big infrastructural projects before committing to this idea.
Trudeau also plans on raising taxes on the top 1% income earners in Canada. The new tax plan would introduce a new tax bracket of 33% for households earning more than $200,000 per year, and lower the 22% tax bracket to 20.5% for households earning between $44, 701 and $89, 401 per year. Justin Trudeau is hoping that higher federal tax rates will encourage wealthy individuals and corporations to invest in the Canadian economy. Personally, I believe that with increased taxes, wealthy households will be even more determined to find ways to avoid paying, which will ultimately lower Canada’s income, negatively affecting the Canadian economy.
Sources
- CBC News. Justin Trudeau defends proposed tax hike on wealthy in Bay Street speech. N.p.: The Canadian Press, n.d. Web. 9 Nov. 2015. <http://www.cbc.ca/news/politics/justin-trudeau-defends-proposed-tax-hike-on-wealthy-in-bay-street-speech-1.3069236>.
- Curry, Bill, and Barrie McKenna. What a Liberal victory would mean for Canada’s economic policies. Ottawa: The Globe and Mail, n.d. Web. 9 Nov. 2015. <http://www.theglobeandmail.com/news/politics/what-the-liberals-economic-plan-would-mean-for-canada/article26838610/>.
- Posadzki, Alexandra. Canadian business leaders assess impact of Liberal victory. Toronto: The Canadian Press, n.d. Web. 9 Nov. 2015. <http://www.ctvnews.ca/business/canadian-business-leaders-assess-impact-of-liberal-victory-1.2618339>.