During last year’s election, the Liberals said it would be revenue neutral.
But new numbers from the Parliamentary Budget Office show a tax hike on the rich and tax cut for the middle class will cost us.
The report looks at the fiscal impact of a new 33-percent personal income tax rate on income over $200,000 and a reduced 20.5-percent rate on those earning between $45,000 and $90,000 a year.
The Liberals said the tax hike would bring in $3-billion in new taxes each year, while the cut would reduce government coffers by the same amount.
But the Parliamentary Budget Office says the actual result of the changes is a loss of revenue:
$400-million in the current fiscal year, and around $1.7-billion annually after that.
It says the middle class tax cut would impact 43-percent of taxpayers, giving out more money than the changes bring in.
Last month the Liberals acknowledged their election-time projections were off, suggesting the tax changes would result in a $8.2-billion shortfall over six years.
The numbers released today suggest the deficit would actually be $8.9-billion.