Canadian Budget 2016 - Growing The Middle Class

On March 22, 2016 ("Budget Day"), Minister of Finance Morneau of the recently-elected Liberal Government tabled his first federal budget ("Budget 2016"), themed "Growing the Middle Class." The basic narrative underlying Budget 2016 is one that juxtaposes the challenges faced by "David" and "Neera," two individuals belonging to Canada's middle class, against "friends who earn more and are already talking about when they will retire." The narrative and underlying juxtaposition represents a clear change in policy and direction when compared to the previous Conservative government's general narrative of austerity.

Budget 2016 expands on one of the Government's first actions, taken on December 7, 2015, of introducing a tax cut for the middle class by reducing the second personal federal income tax rate to 20.5% from 22% and raising taxes on Canadians earning more than $200,000 by introducing a top federal income tax rate of 33% (which, in most provinces, translates