Freeland Touts Economy’s Strength, Announces Affordability Measure

Minister of Finance Chrystia Freeland delivers the federal budget in the House of Commons on Parliament Hill in Ottawa on March 28, 2023. (Sean Kilpatrick/The Canadian Press)

Finance Minister Chrystia Freeland announced the advanced delivery of a tax credit for low-income workers while praising the strength of the economy during a visit to Prince Edward Island on July 28.

“This is immediate support for those working hard to get ahead,” said Ms. Freeland, in reference to the Canada Workers Benefit being delivered ahead of the next tax season.

The benefit is a refundable tax credit that can be claimed when filing an income tax return and is being provided in advance as an affordability measure.

The Liberal government expanded eligibility for the benefit in Budget 2021 and introduced advance payments in the Fall Economic Statement.

It will be provided to families with children earning a net income of under $43,212 and singles without children earning less than $33,015.

Ms. Freeland said this can help 4.2 million Canadians, with a family being able to receive $2,600 and a single worker over $1,500.

The Revenue Agency says the maximum amount for families is actually $2,461 and is gradually reduced if the adjusted net income is over $26,805. The amount for single individuals is $1,428 and is lesser for those making over $23,495. Payments will be provided on a quarterly basis.

“We know that the essential workers, the low and modest paid workers who are getting Canada Workers Benefit, they need their money right now,” said Ms. Freeland.

The finance minister said her government recognizes that Canadians are currently “feeling the pinch” with the higher prices of key life necessities.

“I know groceries are expensive, gas is expensive, rent is expensive,” she said. “Some really good news in the economy, here on PEI and across the country: We have an incredibly strong jobs market.”

Statistics Canada said in its Labour Force Survey for June that the unemployment rate is currently at 5.4 percent. The agency says this rate is the highest in over a year, but remains lower than its pre-COVID-19 average of 5.7 percent.

Ms. Freeland has also emphasized the return of inflation within the Bank of Canada’s target range, with the latest Consumer Price Index (CPI) data coming in at 2.8 percent.

She remarked that Canada has the lowest inflation among G7 countries. Japan had kept inflation at the lowest level compared to peers throughout COVID-19, but its latest reading came in a 3.3 percent. Inflation was at 3 percent in the United States in June and 7.9 percent in the UK.

Inflation is calculated through CPI, which measures the changes in prices for a basket of goods and services. Countries measure it differently, assigning different weights to items.