No Time to Lose
With the country facing significant and unpredictable headwinds going into another federal election year, the 2019 Alternative Federal Budget (AFB) shows that Canada can boost competitiveness and encourage innovation by investing in people, not by giving corporations more tax cuts.
The progressive and cost-effective measures in the 2019 AFB will narrow the gap between the rich and the rest of us, lift close to a million people out of poverty, raise revenues by closing unfair and expensive tax loopholes, and create 500,000+ jobs, many of them in the low-carbon jobs of the future. The alternative on offer—for Canada to copy the Trump administration’s tax cuts and deregulation—is far too expensive to even consider.
Under the AFB plan, the 95% of Canadian families who earn less than $254,000 a year will be better off on average due to both tax and transfer changes, and new social programs including a long overdue national pharmacare plan, universal child care and free tuition. This can all be achieved while maintaining historically low deficits.
The fully costed AFB plan shows that Canada can afford to:
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Eliminate the gender employment gap, which will add 4% to Canada’s real GDP;
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Lower the poverty rate by 50% within three years;
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Slash the child poverty rate by a quarter and the senior poverty rate by roughly 40%, while doing a better job at protecting pensions;
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Invest $5 billion in First Nations infrastructure over three years;
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Implement single-payer universal pharmacare, saving up to $11.5 billion across the country; and,
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Implement a “just transition” plan to support workers and communities as Canada moves away from fossil fuels on the path toward a clean economy.
