![]() ![]() The federal basic personal amount is a tax exemption that every Canadian individual is entitled to, meaning the first $12,069 of income is always tax-free. The Liberals took a slightly different approach by promising to increase the federal basic personal amount to $15,000 from $12,069, phased in over four years for Canadians earning under $147,000. For an individual who makes $47,630 and above, the federal tax savings under a Conservative Government will be as follows (note that the savings progressively decrease for income below $47,630): Since Canada has a marginal rate system, everyone above the bottom bracket will also benefit from this rate cut. The Conservatives are proposing to reduce the income tax rate of the bottom bracket ($12,069 to $47,630) from the current rate of 15% to 13.75% over three years, starting in 2021. Personal income tax rate changes are always the most visceral aspect of a tax platform because every working adult is familiar with the sting of personal taxes. Let’s strip away the campaign rhetoric, dive into some of the highlights, and see how these proposals might impact your pocketbook. Based on what the parties have so far released, we have prepared a table to help everyone keep track of each party’s tax promises, as well as the estimated financial impact to the government for each proposal, as analyzed by the Parliamentary Budget Officer (“PBO”). This election is particularly interesting because of the bold new tax ideas thrown around: net-worth tax, the so-called robot tax, and of course, the debate around capital gain inclusion rates. ![]() Accordingly, the purpose of this blog is to analyze and compare the tax changes promised by each party, and get a sneak preview of the tax policies that may shape the lives of Canadians for the coming decade. One of the most impactful areas on the lives of all Canadians addressed in these documents is, of course, the proposed tax changes. The 2019 federal election is fast approaching, and the national political parties are busy releasing platforms outlining their respective visions for Canada. These updates have been noted where applicable. OctoUpdate: This blog has been updated to include information released since the original publication. ![]()
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