While the government did reduce the second-lowest personal income tax rate (from 22 per cent to 20.5 per cent), it also eliminated a number of tax credits (provisions in the tax code that reduce a person’s income taxes, if they qualify), thereby increasing income taxes for Canadians who previously claimed such credits. Specifically, the government eliminated the income-splitting tax credit for couples with young children, the children’s fitness tax credit, the public transit tax credit, the education tax credit and the textbook tax credit.
When all the income tax changes are considered, 81 per cent of middle-class families pay more in personal income taxes now because of the Trudeau government’s tax changes.
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