Carney Prioritizes Middle-Class Tax Cut in First Act as Prime Minister

Prime Minister Mark Carney has signed a symbolic order directing his new cabinet to prioritize a middle-class tax cut—fulfilling a key campaign promise. The tax cut, expected to take effect by July 1, could save dual-income households up to $800 per year and is projected to cost the federal government about $22 billion over four years. Finance Minister François-Philippe Champagne confirmed that formal legislation will follow the government's policy speech on May 27. While the move is meant to address affordability and stimulate growth, some business leaders are urging caution due to Canada’s ongoing budget deficits.

If passed, the tax cut would mark an early signal of the Carney government’s economic direction—focused on easing cost-of-living pressures while balancing long-term fiscal responsibility.