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Trudeau tax increase
December 9, 2019
7:49 pm
Bud
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How does it work:
"The government would phase out the benefits of the increased BPA for Canadians, gradually reducing the benefit for those with annual net incomes above $150,473."

GIC King

December 10, 2019
5:14 am
hwyc
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For a little more details - follow this Basic Personal Amount link

December 10, 2019
6:24 am
Bill
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Not sure this is a Trudeau tax increase, seems to me this will cost the government and that most people will benefit.

December 10, 2019
6:46 am
NorthernRaven
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Bill said
Not sure this is a Trudeau tax increase, seems to me this will cost the government and that most people will benefit.  

It is a general tax cut, to the tune of around $6 billion in annual revenue in a few years, by increasing the Basic Personal Amount on your tax return. But they are going to treat the increase (not the whole amount) something like OAS, and gradually claw it back. The BPA increase gets clawed back starting at around $150K of net income, and disappears entirely at $214K, where people will have only the current BPA amount.

Below $150K net income, the tax savings appear to be around $300/year once it is fully implemented (2023). $150K net income is probably around 1-2% of Canadians.

December 10, 2019
7:27 am
Bill
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Agreed, it's important to note those over about $150K continue to get the existing BPA, indexed to inflation, so really nobody ends up losing.

December 10, 2019
10:44 am
AltaRed
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Wish they would just reduce the deficit.

December 10, 2019
12:48 pm
Bill
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AltaRed, anyone who suggests gov't cuts gets booted, so they can't, seems to me.

December 14, 2019
5:51 am
Loonie
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Nobody with an income over 100K (and probably less than that), let alone couples earning 300K between them, has a good reason to have their BPA increased. If they need tax relief, it should be related to the reason they need such relief (e.g. northern allowance etc.), not a general giveaway.
And I guarantee such folks will still be whining about their taxes, even with the giveaway, just as they have continued to whine since TFSAs were introduced.

I'd like to know where the gov't thinks it is going to make up all this money.

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