Mr. Speaker, faced with unjustified tariffs from the U.S. and shifting global supply chains, our new government is well aware of the affordability challenges facing Canadians. Although we have begun to see encouraging signs of stabilization, housing prices have gone up in recent years; although Canada's inflation rate has been within the Bank of Canada's target for 21 consecutive months, we know that food inflation remains a concern as well.
That is why our government is taking immediate action to address this cost of living crisis. Our goal is to bring down costs so that Canadians can keep more of their paycheques and spend where it matters most to them. Budget 2025 would build upon this important work that has already been done. As we all await the tabling of that historic document, I will outline a few ways our government has already acted decisively to make life more affordable for Canadians.
Among the first pieces of legislation introduced by our new government was Bill C-4, which would deliver a middle-class tax cut to allow hard-working Canadians to keep more money in their pockets. I am proud to note that this tax cut would save a two-income family up to $840 in 2026; going forward, it is expected to deliver over $27 billion in tax savings to Canadians over the next five years. This rate reduction would benefit Canadians across the country, and the bulk of the middle-class tax cut would go to those with incomes in the two lowest tax brackets, including half to those in the first bracket, which is $57,375 and below in 2025. With this middle-class tax cut, the lowest marginal personal income tax rate would be reduced from 15% to 14%, effective July 1, 2025, and this tax cut would help hard-working Canadians keep more of their paycheques to spend where it matters most.
That is not all. This legislation, which I am happy to announce finished clause-by-clause consideration at FINA earlier today, would also eliminate the GST for first-time homebuyers on new homes up to and under $1 million, and lower the GST for first-time homebuyers on new homes between $1 million and $1.5 million. Doing so would save Canadians up to $50,000, allowing more young people and families to enter the housing market and realize their dream of home ownership. Providing GST relief means Canadians would face lower upfront housing costs and keep more money in their pocket. This would also have a dynamic effect on increasing supply, spurring the construction of new homes across the country.
The bill would remove the consumer carbon tax, saving Canadians money at the pump. I am happy that all parties joined us in supporting Bill C-4. Unfortunately, that non-partisan approach to making life more affordable for Canadians has not translated elsewhere.
While the Conservatives continue to talk down the Canadian economy and Canadian workers, we are stepping up in other ways as well. We plan to spur the construction of new homes with the newly launched Build Canada Homes initiative, which will increase Canada's supply of affordable housing and play a pivotal role in the government's plan to help double the pace of housing construction over the next decade.
The Prime Minister also recently announced that we are making the national school food program permanent, to provide meals for up to 400,000 children. This program will ensure that kids are fed healthy meals at school and save families with two children $800 per year on groceries. While the Conservatives may refer to this program as “garbage”, I would like to see them say that to the families in my riding. As I said earlier, in my community of Musqueam, I see kids actually going to school with smiles on their face and food in their belly, and they are excelling in their school work as they have not done in many generations.
With these measures, we are delivering changes to cut taxes, bring down costs and put money back in the pockets of Canadians.