NDP platform would see $33B deficit next year, major tax hikes on wealthy
NDP leader Jagmeet Singh answers question from the media during a campaign stop in Ottawa on Friday, October 11, 2019. THE CANADIAN PRESS/Nathan Denette
The Canadian Press
Published Friday, October 11, 2019 10:21AM EDT
OTTAWA -- The NDP is proposing to run a deficit of $32.7 billion next year if they win the federal election, with no plan to return to balance.
New Democrats released their platform costing today, and it shows $35 billion in planned new spending next year and $30.5 billion in expected new revenues.
The balance sheet shows many new investments would be front-loaded in the first year of an NDP government, as the projected deficit falls to $18 billion in year two, then sits at around $16.5 billion for the remaining two years of the lookahead.
The party says its plan would still see the country's debt-to-GDP ratio fall over that time period.
The largest new spending promises include $10 billion for pharmacare, $5 billion for building new affordable homes, and $1.8 billion for ending boil water advisories for Indigenous communities.
New revenue would largely come from businesses and wealthy Canadians, including $8 billion from increasing the capital gains inclusion rate, $6.3 billion from increasing the corporate income tax rate, $5.8 billion from cracking down on tax havens and $5.6 billion from a tax on the ultra-wealthy.