Good news for Canadians: Mark Carney signs order to cut taxes for middle-class citizens, effective July 1

Mark Carney, the new Prime Minister, had his first cabinet meeting on Parliament Hill on Wednesday. After the meeting, Carney signed a symbolic order to show his top priority is a middle-class tax cut.

He asked his ministers to get ready to bring in the tax cut bill as soon as Parliament returns later this month.

Carney said the goal is for the tax cut to start by July 1, as promised. This tax cut will lower personal income tax by 1% for many Canadians.


22 million Canadians who pay federal income tax will benefit. Some families could save up to $840 a year because of it, Carney said.

Finance Minister Francois-Philippe Champagne called the move “very significant.” Champagne said it sends a clear message that this tax cut is the government’s first priority.

But for the tax cut to happen, Parliament has to approve it, Carney said. Since Carney's government is a few seats short of a majority, they will need to get 2 more votes to pass the law.

Champagne said the Liberals will introduce a ways and means motion to officially bring in the tax cut law. He’s hopeful the opposition will support it.

New Cabinet Team

Before the cabinet meeting, new ministers and secretaries of state said they were excited to begin work. Carney’s cabinet was sworn in on Tuesday.

It’s a two-tier system, 28 core ministers and 10 secretaries of state. He kept some experienced ministers in key roles but also brought in 24 new people.

Wayne Long, from New Brunswick, is now the Secretary of State for the Canada Revenue Agency and Financial Institutions.

Long said he thinks the government will be run more like a corporation, which is “long overdue.” He promised to represent his people and speak freely.

Long was known for being critical of ex-PM Justin Trudeau. He once said he wouldn’t run again if Trudeau stayed leader.

Reporters asked if criticizing Trudeau helped him get this new job, Long said, “Not at all.”

He said Carney doesn’t do favours, and chooses qualified people.

Jill McKnight, from British Columbia, is now Minister of Veterans Affairs and Associate Minister of National Defence.

Maninder Sidhu, new Minister of International Trade, said Sidhu was elected in 2019 and used to be a parliamentary secretary for international development.

Stephen Fuhr, a longtime B.C. MP, is now Secretary of State for Defence Procurement. He said he’ll figure out his priorities during the cabinet meeting.

Tim Hodgson, a former Bank of Canada adviser and ex-Goldman Sachs CEO, is now Minister of Energy and Natural Resources. Hodgson said he’s ready to build, dig in, and do a lot of work.

He also said he’ll be working with provinces, Indigenous partners, and industries. Hodgson added he’s going out west soon to begin this work.

Parliament is set to return on May 26, and the following day, King Charles III will deliver the Speech from the Throne.

After this, the government will take further economic steps, as confirmed by Finance Minister Champagne.

He explained that the first step is the middle-class tax cut, which is already in progress. The second step will be the Throne Speech itself, where the government will outline its new priorities.

Following that, there will be a fall economic update to present more detailed plans.

Conservative Leader Pierre Poilievre criticized Carney’s team on Wednesday. He said it’s wrong that they’re doing a fall economic update instead of a spring budget.

Poilievre said families are struggling and businesses are suffering from U.S. tariffs. He said the Liberals are avoiding responsibility. He also said Carney, who was supposed to be a “serious economist,” is giving Canadians only “delays and dysfunction.”

FAQs

Q1. What is Mark Carney’s first big plan as Prime Minister?
He wants to cut income taxes for the middle class.

Q2. Will the tax cut happen right away?
No, it needs to be passed by Parliament first.