In his first official act following the swearing-in of his new cabinet, Prime Minister Mark Carney signed a directive Wednesday morning instructing ministers to prioritize legislation for a middle-class tax cut — a key campaign promise he aims to deliver by July 1.
Flanked by his newly appointed cabinet members at Parliament Hill, Carney emphasized the importance of immediate action. “We are acting today on that, so that by July 1, as promised, that middle-class tax cut — which will reduce taxes for 22 million Canadians — will take effect,” Carney declared.
The proposed legislation would lower the personal income tax rate by one per cent for many Canadians, with some families projected to save up to $840 annually.
Finance Minister François-Philippe Champagne hailed the move as “very significant,” underscoring it as the government’s first order of business. “It sends a very strong and clear message to Canadians,” Champagne added.
Although the Liberals fell just short of a majority in the recent federal election, Carney expressed confidence in gaining the additional two votes required to pass the tax legislation when Parliament returns on May 26.
Champagne confirmed that a ways and means motion will be tabled in the House of Commons and expressed optimism that opposition parties would support the measure.
New Cabinet Eager to Begin Work
Carney’s newly unveiled two-tiered cabinet structure includes 28 core ministers and 10 secretaries of state. The team features a blend of experienced veterans and 24 newcomers, signaling a clear attempt to inject fresh ideas and energy into government.
“I think we’re going to see our government run like a corporation, which is long overdue,” said Wayne Long of New Brunswick, who was appointed secretary of state for the Canada Revenue Agency and financial institutions. A vocal critic of former Prime Minister Justin Trudeau, Long dismissed any suggestion that his new role was a political reward.
Rookie ministers expressed enthusiasm as they arrived for their first cabinet meeting. Jill McKnight from British Columbia, now Minister of Veterans Affairs and Associate Minister of National Defence, said she is “very excited to get started.”
Newly appointed International Trade Minister Maninder Sidhu also shared his excitement. A Member of Parliament since 2019, Sidhu previously served as a parliamentary secretary for international development.
Stephen Fuhr, a longtime MP from British Columbia and now secretary of state for defence procurement, said he would use the cabinet meeting to begin shaping his priorities.
Tim Hodgson, a former Bank of Canada adviser to Carney and ex-Goldman Sachs executive, now takes on the portfolio of Minister of Energy and Natural Resources. “We have a lot to do,” said Hodgson. “I look forward to working with my provincial and territorial counterparts, Indigenous partners, and industry to build a more prosperous, secure, and safe Canada.”
Throne Speech and Economic Update Ahead
As Parliament resumes on May 26, the government will lay out its priorities through a Speech from the Throne delivered by King Charles III the following day. Finance Minister Champagne confirmed that a fall economic update will follow shortly afterward.
“What we have today is the middle-class tax cut. That’s step one,” Champagne said. “Step two is the Throne Speech outlining our government’s priorities, followed by the fall economic statement.”