Liberal Tax Plan

Big Guy · May 4, 2015

The federal Liberal Party has declared how it will change tax loads if it were to be elected. The details are at:

https://www.liberal.ca/fairness/

A good plan or a bad plan?

Derek 2.0 · May 4, 2015

Its good for the Tories........Trudeau has stated to pay for his plan he'll reverse the increased TFSA limits and income splitting, of course, both benefit seniors, with upwards of 60% of current TFSA being held by the elderly........seniors vote = ~180-190 seat Tory majority.....

Likewise, even the NDP is refusing to go after the wealthy "1%" with tax increases (favoring an increase to corporate taxes), for reasons all too obvious (look no further than the UK and France a generation ago).........the wealthy have really good lawyers and accountants, and will "leave Canada" for the Caymans or Belize......The State can't tax what isn't there.

It will be interesting to see how the plan actually reads once its been fully costed.......as opposed Trudeau's math written on a napkin with a crayon.

How old will Garneau be in 2019 and can Mayor Nenshi speak French?

Argus · May 4, 2015

Its good for the Tories........Trudeau has stated to pay for his plan he'll reverse the increased TFSA limits and income splitting, of course, both benefit seniors, with upwards of 60% of current TFSA being held by the elderly........seniors vote = ~180-190 seat Tory majority.....

Likewise, even the NDP is refusing to go after the wealthy "1%" with tax increases (favoring an increase to corporate taxes), for reasons all too obvious (look no further than the UK and France a generation ago).........the wealthy have really good lawyers and accountants, and will "leave Canada" for the Caymans or Belize......The State can't tax what isn't there.

I'm in the top rate, and this will raise my federal income tax rate from its current 45% to 49% (including Ontario tax and Ontario's 'wealth surcharge'.

I realize there's no sympathy from those making less, but the fact is I already pay what I would have once regarded as a fortune in taxes - enough to pay the full time salaries of several employees if I wanted to hire them (and had anything for them to do). My increased income has only come in the past few years and I seriously doubt it will go on forever. As for those lawyers and accountants, they're of no real use when your money is coming from something other than investments. I have given thought to leaving Canada. I could do what I do anywhere and it would save myself a ton of money in many other jurisdictions. I'm not at that point yet, but the Liberals, both provincially and federally, are certainly pushing at me to go and take my money with me.

Derek 2.0 · May 4, 2015

I'm in the top rate, and this will raise my federal income tax rate from its current 45% to 49% (including Ontario tax and Ontario's 'wealth surcharge'.

I realize there's no sympathy from those making less, but the fact is I already pay what I would have once regarded as a fortune in taxes - enough to pay the full time salaries of several employees if I wanted to hire them (and had anything for them to do). My increased income has only come in the past few years and I seriously doubt it will go on forever. As for those lawyers and accountants, they're of no real use when your money is coming from something other than investments. I have given thought to leaving Canada. I could do what I do anywhere and it would save myself a ton of money in many other jurisdictions. I'm not at that point yet, but the Liberals, both provincially and federally, are certainly pushing at me to go and take my money with me.

I hear you, I'd likely land in Trudeau's higher rate, my wife for sure........but I'm not too worried about a Trudeau Government, a Government that will reverse the TFSA rates:

Canadians strongly support the Conservative government’s move to raise the contribution limits for Tax Free Savings Accounts, but expanding the Canada Pension Plan would be an even more popular move.

A new Nanos survey conducted for The Globe and Mail reveals 64 per cent of Canadians polled said they support increasing how much Canadians can put into a TFSA. The Conservative government’s April 21 budget increased the maximum annual contribution limit from $5,500 to $10,000.

And if the majority of TFSA holders are seniors that vote.........

Boges · May 4, 2015

I wonder when he'll mention is plans for a National Carbon Tax.

carepov · May 4, 2015

The federal Liberal Party has declared how it will change tax loads if it were to be elected. The details are at:

https://www.liberal.ca/fairness/

A good plan or a bad plan?

Bad plan.

He lost my (middle-class) vote by promising to cancel income splitting.

bush_cheney2004 · May 4, 2015

Didn't Chretien and the Liberals promise to cancel the GST back in 1993 ?

How'd that work out ?

Derek 2.0 · May 4, 2015

Bad plan.

He lost my (middle-class) vote by promising to cancel income splitting.

But why? With the Tories income splitting and TFSA limits you could save upwards of several thousand dollars a year, but under the Trudeau Tax "adjusted rates", Canadians earning under 89k a year will save upwards of $600-1000 a year.......don't you want to pay more of your money to Ottawa?

Black Dog · May 4, 2015

Bad plan.

He lost my (middle-class) vote by promising to cancel income splitting.

You benefit from income splitting? Wow this is like seeing a unicorn in the wild.

Topaz · May 4, 2015

Yeah, but look at it this way, taxpayers would get back some of their tax money become all those MP's making big bucks would have to give it back., but then again, I guess that's why the Tories increased the tax saving account for all those Tories MP retiring. When the Tories say that many under 60,000. are putting into that tax saving account, that's a lie because most can't afford it and if they could afford why not put it into RRSPs and get back tax money?? Again, the 1% wouldn't suffer if they had to pay more in taxes, sooner or later they will because the middle class is shrinking thanks to corps and governments!

carepov · May 4, 2015

You benefit from income splitting? Wow this is like seeing a unicorn in the wild.

I earn about $80k, my wife makes $0 working at home (harder than me).

Without income splitting, a couple of part-timers (eg: teachers) could be making $40k each and pay about $4k less in taxes. Unfair!

Boges · May 4, 2015

People make income splitting about pandering to the rich. I'd argue that people that are opposed to it oppose women that decide to stay home with the kids.

Those kids need to be in daycare ASAP!!!

Bryan · May 4, 2015

The plan seems to be: take away several thousand dollars, give back a few hundred. What is his objective, to finish fourth in October?

Hydraboss · May 4, 2015

I've been in that top rate for a number of years, but not as far as my taxes go. If you make between 200-250k and don't know how to report under 200, you need a better accountant. The Liberal plan gives me $670, fine, but they're not going to get any of my income at 33% (unless I get one hell of a raise and can't bury it).

I wonder if they actually did the math to see if the increased income at 33% in Canada will offset the percentage rate drop for "middle class". Of course, math is hard.

Freddy · May 4, 2015

Well that just killed any chance of me voting Liberal lol :) :)

Freddy · May 4, 2015

People make income splitting about pandering to the rich. I'd argue that people that are opposed to it oppose women that decide to stay home with the kids.

Those kids need to be in daycare ASAP!!!

Yes it's a tax credit to parents who stay at home and raise their children. I fall under that category. Parents who send there kids in daycare are already getting a tax credit. All this new income splitting is doing is making things fare for parents who stay home.

Spiderfish · May 4, 2015

I wonder if they actually did the math to see if the increased income at 33% in Canada will offset the percentage rate drop for "middle class". Of course, math is hard.

I doubt it, Trudeau seems to be more of a "big picture" sort of guy when it comes to the mathematics of finance...

Edited May 4, 2015 by Spiderfish

Hydraboss · May 4, 2015

He's right. The deficit will undoubtedly balance itself.

Keepitsimple · May 4, 2015

Let's see how well this Master Communicator defends his platform in an open press conference - if his "handlers" let him speak at all. It's time for the rubber to hit the road - Trudeau will finally have to show us if he has the substance to be a leader.

Moonlight Graham · May 4, 2015

People make income splitting about pandering to the rich. I'd argue that people that are opposed to it oppose women that decide to stay home with the kids.

That's a decent point.

You can make income splitting work by maybe capping it at a certain income,

Maybe child benefit credits should also be higher for families with lower incomes. A family making 50k a year needs that benefit a lot more than a family making 150k, especially if one parent isn't working.

Ash74 · May 5, 2015

You benefit from income splitting? Wow this is like seeing a unicorn in the wild.

I am in that boat as well but JT say's I am wealthy. I beg too differ.

Not a big deal. A Liberal would never get my vote that praised the Ontario Liberals

Freddy · May 5, 2015

You benefit from income splitting? Wow this is like seeing a unicorn in the wild.

Humans who actually care about their kids.

In my opinion.

Smallc · May 5, 2015

You benefit from income splitting? Wow this is like seeing a unicorn in the wild.

If unicorns are as common as families with kids.

Smallc · May 5, 2015

That's a decent point.

You can make income splitting work by maybe capping it at a certain income,

g.

With the benefit cap of $2000 it basically is.

Moonbox · May 5, 2015

I'm in the top rate, and this will raise my federal income tax rate from its current 45% to 49% (including Ontario tax and Ontario's 'wealth surcharge'.

I realize there's no sympathy from those making less, but the fact is I already pay what I would have once regarded as a fortune in taxes....I have given thought to leaving Canada. I could do what I do anywhere and it would save myself a ton of money in many other jurisdictions. I'm not at that point yet, but the Liberals, both provincially and federally, are certainly pushing at me to go and take my money with me.

This is the standard argument against such measures, and it's echoed everywhere around the world. Realistically, however, it rings a little hollow. For the vast vast majority of people, a 4% increase to their tax burden is not going to cause them to uproot. Things like friends, children, grandchildren etc will all get in the way of such sentiments. Many of these folks also rely on their local/domestic business to continue making this sort of money.

Add to it that you have to find somewhere you could relocate to permanently and happily and it's not as simple a decision as it sounds.