Monday, January 01, 2007

Tories Targeted Tax Cuts


To really get the best deal from the Harper Governments targeted tax cuts you should retire at 55 taking advantage of income splitting with your spouse, and quickly adopt two kids under six.

You or your spouse should then retrain for an apprenticeship in a new trade to take advantage of the tool tax credit.

And make sure those kids are enrolled in a hockey program.

Cause it's you and me paying for those targeted tax credits, thanks to the Tories rolling back the Liberal income tax cuts.

Someone earning $15,000 annually can expect to see $126 in savings, $45,000 will save $106 and if your income is $80,000 you should expect to save $232.


But the Canadian Taxpayers Federation can't agree on the situation with EI and CPP. One person says its going to cost us more;

Sara McIntyre from the Taxpayers Federation says Ottawa will do some extra dipping into your pockets as well. She says we'll be paying more for EI premiums and Canada Pension Plan payments will be increasing as well. McIntyre says there is no reason to pay for for employment insurance since the fund has more than a 40 billion dollar surplus.

Whereas their national spokesperson John Williamson says;

The benefits include a small decrease in employment insurance premiums and a new employment credit, which will offset a modest spike in Canada Pension Plan contributions.

Either way you and I pay will pay $70 more in taxes while selected Canadians get the targeted benefits of the Tories attempt to buy votes with tax credits.

"In some cases (people with young children) will see five times the amount of savings as individual Canadians," said John Williamson, head of the Canadian Taxpayers Federation.

"For individual taxpayers without children the picture's not nearly as sunny. The average tax savings range from $100 to $120 in 2007."

The new lowest personal rate of 15.5 per cent represents a quarter-point rise from 2006, and a half-point increase from the rate set by the Liberals in late 2005.

Williamson calculates that an individual earning $35,000 will see average tax savings ranging from $80 in Newfoundland to $144 for Alberta residents.

Compare that to the savings for families with two children under age 6.

In such a family with a single income-earner making $80,000, the range of savings will be from $963 in Quebec to $1,545 in Alberta, says the federation.

A two-income family earning $80,000 with two young children will save approximately $800 in Quebec up to $940 in Alberta.

See:

Finance

Tax Cuts

Flaherty



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