Trudeau promises to raise basic personal deduction to $15K, cut cellphone bills

LiberalLeader Justin Trudeau says his party would raise the basic personal income tax deduction to $15,000 and cut cellphone bills by a quarter if re-elected in October.

The cost of cell service is controlled by the "Big 3"companies Rogers, Telus and Bell who share a near-monopoly on Canada's wireless networks. A Canadian Radio-television and Telecommunications Commission report found that the three controlled91 per cent of all wireless service revenues in 2016.

Canadians pay some of the highest cell bills in the world, with monthly plans ranging from around $40 to over $100.

Trudeau said the Liberal proposalwouldsave the average family almost $1,000 a year.

To lower the cost, the Liberals say they would open up the market to more competition and work withcell companies to offer plans that more closely mirror global prices. Theywould also implementan unlimited family plan. More rules could kick in after two years if the prices don't decrease enough.

How much thatproposalwould cost is unclear.

"We know that Canadians are concerned about affordability," Trudeau said.

Earlier this week the NDP also put out their plan to cap prices ofcellphone andinternetservices which would savefamilies an estimated $250 a year.

In a statement on Sunday,Robert Ghiz, president and CEO of the Canadian Wireless Telecommunications Association,which represents most of the country's major carriers, said wireless prices have already come down around 30 per cent over the past three years and will continue to decrease.

"Aswe enter a world of 5G,it is critical that we encourage investment in network technology, the backbone of the Canadian economy," Ghiz said."We need to balance driving affordability with investing long-term so Canadians continue to enjoy world-class networks."

Basic personal income deduction to rise

The Liberals crammed a second, unrelatedpromise into Trudeau's appearance in Brampton, Ont. Like most others ofthis campaign, it was alsofocused on affordability.

Trudeau saida Liberal government would raise the basic personal income tax deduction to $15,000 for people earning under $147,000 meaning youwould only pay taxes onincome over that amount. Currently, the basic personal deductionis $12,069. The increase would be phased in,reaching $15,000 by 2023.

The Liberals estimate this will save an individualjust under $300 a year, whilefamilieswould save $585.

"We have to realize that the cost of living is going up," Trudeau said.

The tax cut would cost $2.9 billion to start, increasing to $5.6 billion by 2023-2024.

The Liberals haven't released costing of several promises throughthe Parliamentary Budget Officer's new program that allows parties to submit their campaign proposalsfor costing. Theyhave faced criticism for it.

Trudeau said the tax cut would lift 40,000 people out of povertyand the party added it would encompassabout 700,000 more Canadians.

"We have a sustainable fiscal plan," Trudeau said.

The Liberals were running a $15-billion deficit before the campaignand havebeen cagey about a timeline back to balance. The party has promised a fully costed platform, but it has not been released yet.

The Conservatives have already announced a tax cut of a different kind. Last week Andrew Scheer saida Conservative governmentwould cutthe tax rate on taxable income under $47,630 to 13.75 per cent from 15 per cent.

The party says that would save the average single taxpayerabout $444 a year. A two-income couple earning an average salary would save about $850 a year.