Fact check: Did Justin Trudeau cut the tax rate for middle class from 22.5% to 20%?

1. Summary of the results

1. Summary of the results:

The Trudeau government did implement a middle-class tax cut, but from 22% to 20.5% (not 20% as sometimes claimed) for incomes between approximately $45,000 and $90,000. This change benefited over 9 million Canadians, with average annual savings of $330 for singles and $540 for couples.

2. Missing context/alternative viewpoints:

• The tax cut was part of a larger package that included creating a new 33% tax bracket for incomes over $200,000
• The largest benefits went to higher-income earners making between $89,000-$200,000, not the statistical middle class ($30,000-$75,000)
• People earning under $45,000 received no direct benefit from this tax cut
• The Fraser Institute, a conservative think tank, argued that when considering eliminated tax credits, some middle-class families actually paid more in total taxes
• Progressive economists counter this by pointing to the new Canada Child Benefit, which provided significant additional income for families
• The $3 billion cost of the tax cut was supposed to be offset by the new high-income tax bracket, but economists suggest it might only generate $1 billion

3. Potential misinformation/bias in the original statement:

• The statement oversimplifies a complex tax policy change by focusing only on the rate reduction
• It presents the tax cut as purely beneficial to the middle class, when in reality the benefits were not evenly distributed
• The specific numbers quoted (22.5% to 20%) are incorrect, showing a lack of precision in reporting the actual changes
• The statement fails to acknowledge that the definition of "middle class" itself is contested, with the statistical definition ($30,000-$75,000) differing from the income bracket that received the tax cut ($45,000-$90,000)