normanchateau Posted March 9, 2008 Report Posted March 9, 2008 Has anyone looked at the Federal Tax Rates on Schedule 1 of the 2007 T1 form. For 2007, they were 15.5%, 22%, 26% and 29%. For 2006, they were 15.25%, 22%. 26% and 29%. For 2005, they were 15%, 22%, 26% and 29%. In other words, for two consecutive years now it appears that the socon-like Harper government has raised the marginal tax rate in a manner which would most affect those in the lowest tax bracket. Furthermore, they did so at exactly the same time that they had an extraordinary surplus and increased government spending to the highest level in Canada's history. Is this what Harper considers fiscal conservatism? Does Harper not realize that fiscally conservative economists advocate income tax cuts? Did Harper learn nothing from Preston Manning other than the importance of good grooming? Surprisingly, in October 2007, the Harper government announced and promised a personal income tax cut retroactive to Jan. 1, 2007, cutting the lowest marginal tax rate to 15 per cent from 15.5 per cent. This would at least have restored the lowest marginal rate to where it was under the Liberals. I wonder why the reduction from 15.5% to 15% is not reflected on the 2007 T1 form. Does anyone out there have a revised form indicating 15%? Is this incompetence or were the Conservatives merely lying once again as they had about income trusts? Quote
capricorn Posted March 9, 2008 Report Posted March 9, 2008 My personalized tax package contained a revised T1 schedule as a separate insert. The revised T1 schedule was an insert in the package to replace the T1 schedule in the forms book that showed 15.5%. I think the reason for placing a separate insert was that the tax forms had already been printed when the change to 15% was announced. So rather than reprint everything, they added the insert to the tax packages. IMO that was the most economical way of doing it. Score one for the CRA staff. I also downloaded a General Tax Return from the CRA site and the T1 schedule on their site was revised to the correct rate of 15%. Quote "We always want the best man to win an election. Unfortunately, he never runs." Will Rogers
normanchateau Posted March 9, 2008 Author Report Posted March 9, 2008 My personalized tax package contained a revised T1 schedule as a separate insert. Thanks for the tip. I just looked again and found the insert. Our marginal tax rates are indeed now back to where they were in 2005. Quote
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