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Tax Policy Comparison:
Fiscal & Costing Plans Released

Costing Plan Comparison:
Fiscal & Costing Plans Released		 Conservative Party Liberal Party
Fiscal Policies Announced various fiscal measures including: Deficits and Debt Management, Public Sector Reform, Program Spending Cuts, Targeted Tax Measures Costing, Tax Credits & Compliance, Housing Taxation, Sectoral Policy, and Investment Incentives. Released an extensive costing plan including: Deficits and Debt Management, Government Efficiency Claims, Public Broadcaster Funding, New Program Spending, Tax Measures Introduced, Revenue Generation, and Transparency Concerns.
DATE April 22, 2025 April 19, 2025
URL View Full Costing Plan View Full Costing Plan
DESCRIPTION & COMMENT Overall Fiscal Approach
The Conservative platform outlines a comprehensive fiscal plan with a focus on reducing deficits, cutting spending, and implementing targeted tax relief. The plan is projected to result in total tax reductions of approximately $75 billion over four years, partially offset by $56 billion in spending reductions.

Deficits and Debt Management
While deficits remain for the next four years, they are projected to be significantly reduced compared to current levels. Lower debt-servicing costs are anticipated as a result. No clear timeline was set for achieving a balanced budget, but the trajectory is downward.

Public Sector Reform
Plans include reducing federal public sector employment through attrition (replacing only two of every three departing employees), and reducing reliance on external consultants by $23.5 billion over four years.

Program Spending Cuts
Several program cuts are proposed, including the cancellation of the Housing Accelerator Fund ($4.05 billion over four years), elimination of electric vehicle mandates (projected savings of over $11 billion), and other federal infrastructure initiatives.

Targeted Tax Measures Costing
Key tax proposals and their estimated revenue impacts include:
  • Capital gains deferral measure (Canada First Reinvestment Tax Cut): $12.7 billion cost over two years
  • Reduction of the bottom personal income tax bracket: $30.2 billion cost over four years
  • Removal of GST on the first $1.3 million of new housing: $7.7 billion cost over four years
Tax Credits & Compliance
Proposes making the Canada Caregiver Credit refundable, and streamlining the Disability Tax Credit. Also includes a proposal to eliminate the reporting requirement for principal residence dispositions.

Housing Taxation
Commitment to eliminate the Underused Housing Tax.

Sectoral Policy
Plans to initiate an “oligopoly review” of key federally regulated sectors (e.g., banking, telecom, airlines) to encourage competition.

Investment Incentives
Proposes a reform of investment tax credits to support clean Canadian manufacturing and production, although details remain limited.		 Overall Fiscal Approach
The Liberal costing documents project over $200 billion in total expenditures over the next four years, with continued significant annual deficits totalling more than $140 billion across that period. Detailed narrative explanations were limited at release, with the core information presented through spreadsheet data.

Deficits and Debt Management
No clear plan to balance the budget was outlined. Debt-servicing costs are presented in terms of “incremental” increases rather than total amounts. Based on current levels, annual interest costs are expected to exceed $60 billion.

Government Efficiency Claims
Anticipated savings from increased productivity are modest: $6 billion in year two, followed by $10 billion and $13 billion in years three and four, respectively. No productivity savings are projected in the first year.

Public Broadcaster Funding
Continues to increase funding to CBC/Radio-Canada.

New Program Spending
Numerous funding initiatives are listed, but many lack detail. Examples include:
  • “Secure Our Borders” – $490 million over four years
  • “Protect More Nature” – $650 million over four years

Tax Measures Introduced
Several not previously announced tax proposals include:
  • Expansion of the Critical Mineral Exploration Tax Credit
  • Expansion of Canadian Exploration Expense deductions
  • New refundable “Health Care Workers Hero Tax Credit” – $1.35 billion over four years (offset by previously announced funding)
  • Resurrecting the MURB (Multiple Unit Residential Building) tax shelter – projected cost of $4.1 billion over four years

Revenue Generation
General references to “new revenues” (implying new or increased taxes), but no clear detail provided on their source or scope.

Transparency
The lack of narrative and reliance on data tables make it difficult to assess the source and impact of many measures. Clear documentation of fiscal principles (e.g., treatment of capital expenditures) is limited.

Costing Plan Comparison:
Fiscal and Costing Plans Released

Costing Plan Comparison: Fiscal and Costing Plans Released

Conservative Party
Date: April 22, 2025

Summary:
Announced various fiscal measures including: Deficits and Debt Management, Public Sector Reform, Program Spending Cuts, Targeted Tax Measures Costing, Tax Credits & Compliance, Housing Taxation, Sectoral Policy, and Investment Incentives.

Description & Comment:

Overall Fiscal Approach
The Conservative platform outlines a comprehensive fiscal plan with a focus on reducing deficits, cutting spending, and implementing targeted tax relief. The plan is projected to result in total tax reductions of approximately $75 billion over four years, partially offset by $56 billion in spending reductions.

Deficits and Debt Management
While deficits remain for the next four years, they are projected to be significantly reduced compared to current levels. Lower debt-servicing costs are anticipated as a result. No clear timeline was set for achieving a balanced budget, but the trajectory is downward.

Public Sector Reform
Plans include reducing federal public sector employment through attrition (replacing only two of every three departing employees), and reducing reliance on external consultants by $23.5 billion over four years.

Program Spending Cuts
Several program cuts are proposed, including the cancellation of the Housing Accelerator Fund ($4.05 billion over four years), elimination of electric vehicle mandates (projected savings of over $11 billion), and other federal infrastructure initiatives.

Targeted Tax Measures Costing
Key tax proposals and their estimated revenue impacts include:
  • Capital gains deferral measure (Canada First Reinvestment Tax Cut): $12.7 billion cost over two years
  • Reduction of the bottom personal income tax bracket: $30.2 billion cost over four years
  • Removal of GST on the first $1.3 million of new housing: $7.7 billion cost over four years
Tax Credits & Compliance
Proposes making the Canada Caregiver Credit refundable, and streamlining the Disability Tax Credit. Also includes a proposal to eliminate the reporting requirement for principal residence dispositions.

Housing Taxation
Commitment to eliminate the Underused Housing Tax.

Sectoral Policy
Plans to initiate an “oligopoly review” of key federally regulated sectors (e.g., banking, telecom, airlines) to encourage competition.

Investment Incentives
Proposes a reform of investment tax credits to support clean Canadian manufacturing and production, although details remain limited.

View Full Costing Plan
Liberal Party
Date: April 19, 2025

Summary:
Released an extensive costing plan including: Deficits and Debt Management, Government Efficiency Claims, Public Broadcaster Funding, New Program Spending, Tax Measures Introduced, Revenue Generation, and Transparency Concerns.

Description & Comment:

Overall Fiscal Approach
The Liberal costing documents project over $200 billion in total expenditures over the next four years, with continued significant annual deficits totalling more than $140 billion across that period. Detailed narrative explanations were limited at release, with the core information presented through spreadsheet data.

Deficits and Debt Management
No clear plan to balance the budget was outlined. Debt-servicing costs are presented in terms of “incremental” increases rather than total amounts. Based on current levels, annual interest costs are expected to exceed $60 billion.

Government Efficiency Claims
Anticipated savings from increased productivity are modest: $6 billion in year two, followed by $10 billion and $13 billion in years three and four, respectively. No productivity savings are projected in the first year.

Public Broadcaster Funding
Continues to increase funding to CBC/Radio-Canada.

New Program Spending
Numerous funding initiatives are listed, but many lack detail. Examples include:
  • “Secure Our Borders” – $490 million over four years
  • “Protect More Nature” – $650 million over four years

Tax Measures Introduced
Several not previously announced tax proposals include:
  • Expansion of the Critical Mineral Exploration Tax Credit
  • Expansion of Canadian Exploration Expense deductions
  • New refundable “Health Care Workers Hero Tax Credit” – $1.35 billion over four years (offset by previously announced funding)
  • Resurrecting the MURB (Multiple Unit Residential Building) tax shelter – projected cost of $4.1 billion over four years

Revenue Generation
General references to “new revenues” (implying new or increased taxes), but no clear detail provided on their source or scope.

Transparency
The lack of narrative and reliance on data tables make it difficult to assess the source and impact of many measures. Clear documentation of fiscal principles (e.g., treatment of capital expenditures) is limited.

View Full Costing Plan