Liberals move to apply income tax cut by January 1

Liberals move to apply income tax cut by January 1

Date: December 08, 2015

Source: Toronto Star


Millions of Canadians will obtain a break when they file coming year’s income taxes, the Liberals said as they moved to quickly complete a key election campaign assure.


Several couples will find a normal income tax saving of $540 an annum, with single individuals saving $330 annually on average, from the tax changes introduced by Finance Minister Bill Morneau on Monday. If you are looking for tax saving advice or professional Tax Accountant, we are here to help with tax cut.


But Canadians getting more than $200,000 a year will see their income tax bill increase as an effect of a higher 33-per cent tax rate, the Liberal government said.


Morneau also said the Liberals, in keeping with their election platform, will return the annual donation limit for Tax Free Savings Accounts to $5,500 from the current $10,000 — effective as of 2016.


Morneau listed a notice of ways and means action in the Commons to set in motion the plan to have the tax changes effective on Jan 1.


During the election campaign, the Liberals said the tax raise on the richest 1 per cent of earners would pay for the “middle-class” tax cut. But the accounting released Monday indicated the tax-reduction measure will cost $1.2 billion a year as of 2016 — which could add to the government’s projected $9.8-billion budget deficit that year.


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