Ottawa’s 2024 budget plans to tax some of Canada’s highest earners in order to bolster housing and benefit younger Canadians.
Finance minister Chrystia Freeland tabled the economic blueprint on Tuesday. Spending will be at $535 billion this year, with the deficit sitting at $39.8 billion.
Ottawa will increase the inclusion rate to 66 per cent on capital gains over $250,000, which will bring in an estimated $19.4 billion over the next four years.
“We’re making Canada’s tax system more fair by ensuring that the very wealthiest pay their fair share,” said the finance minister. She says taxing the rich will give millennial and Gen Z Canadians a better chance at achieving a middle class life.
It will cost more to smoke or vape as an additional $5.50 will be tacked onto a carton of cigarettes and a 12 per cent hike will be applied to vaping products.
The Liberals also outlined plans to address housing shortages across the country, with plans to build nearly 3.9 million new homes by 2031, and earmarking $250 million over two years to address tent encampments and lack of shelter space.
$1.5 billion will be spread out over the next five years to roll out the first stages of federal pharmacare, which will provide complete coverage for contraceptives and diabetes medication.
Ottawa will spend $150 million over three years to address the opioid crisis through an emergency fund for municipalities and Indigenous communities. Over $1 billion will be put aside to provide mental health care for young Canadians and Indigenous peoples.
There will be some job cuts in the federal workforce over the next four years. Nearly 5,000 full-time positions will be cut in order to cut down on spending.