Tax breaks promised ahead of federal election will do nothing for Canadians, expert says

Financial experts warn that tax cuts promised ahead of the federal election will fail to create meaningful change for struggling Canadians. 

Yesterday (April 2), it was revealed that Canada was exempt from U.S. President Donald Trump’s reciprocal tariffs on imports to the U.S. However, the situation remains touch-and-go, as auto import tariffs (as well as tariffs on aluminum and steel) remain in full effect.

With a federal election weeks away and economic panic dominating headlines, Liberal Party leader (and current Prime Minister) Mark Carney and Conservative Party leader Pierre Poilievre continue to pledge tax cuts for the middle class if voted into office. 

This has led experts to believe that, if executed, these promises will be more or less a band-aid on a bullet hole compared to the incoming bombardment of economic threats. 

“I think the challenges we have in front of us right now in the political spectrum, from tariffs to the cost-of living, I think, amid all that chaos, people are trying to hold onto something that appears to immediately benefit them,” Francisco Remolino, financial expert at Remolino & Associates, tells INsauga.com. 

While not inherently harmful, Remolino remains confident that these tax cuts are simply a bargaining chip to seduce voters. 

According to data relayed by Remolino’s firm, while these tax cuts will relieve some financial pressure, the predicted one to two per cent income tax reduction does little for lower-income individuals.

To assist the eroding middle class, Remolino thinks that if any promises are made ahead of election day, they should correlate to more expansive economic interests.

“At the end of the day, the factors that impact those struggling can be remedied by lowering the cost of goods and investing in general housing,” says Remolino. “I think we have to start being a little more inquisitive when we hear about income tax reduction.”

Remolino adds that to enhance tax cuts, major policy reform after the fact would make them function as the first step of a long-term plan for those struggling nationwide. 

“I see with clients and the people that we serve, and also, my own personal experience, that most people are going through a lot of anxiety alongside the current times we are living in,” says Remolino. 

In terms of potential solutions, Remolino suggests housing credits, a tax reduction for construction companies that encourage them to shift focus to building affordable housing.

However, even if these two amendments were to work perfectly in concert, at the end of the day, Remolino believes that no lasting change will occur until the cost-of-living crisis is directly addressed and the average household is earning enough to keep pace with the price of goods and services nationwide. 

“The level of unaffordability is such that people can’t cover their basic needs,” says Remolino. “The reality of these proposed cuts is that it is so hard to predict what kind of impact they will have and the dollar amount that will go back into Canadian households until they happen.”

As for what the voter can do in the weeks until polls open, Remolino champions demanding clarity from these elected officials.

“This is an opportunity to ask politicians about these promises, and inquire what steps are being taken to make sure this has long-lasting effects. As opposed to saying one thing and promising nothing in reality.”