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The parliamentary budget officer says the average Canadian family will save about $280 on taxes next year due to the Liberal government’s planned income tax cut. The one-percentage-point reduction to the bottom tax bracket was a key promise during the spring federal election. Prime Minister Mark Carney suggested families could save up to $825 annually. However, the budget officer’s analysis shows most families will see smaller savings. Dual-income couples with a child, both earning in the second tax bracket, could save around $750. Most single Canadians and seniors are expected to save less. The tax cut is set to take effect July 1, following a ways and means motion, though legislation is still before Parliament.
Written by Jeremy Hall