Trudeau Tax Time – October 2015

By November 24, 2015Uncategorized

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The following are tax changes we might expect to see from our new Liberal majority government, assuming they follow through with their proposals during the campaign:

  • TFSA (Tax-Free Savings Account) contribution limit will be reversed back down to $5,500 per year (from $10,000)
  • A possible expansion of the CPP (Canada Pension Plan) which may lead the Ontario Liberal government to no longer pursue their proposed Ontario Retirement Pension Plan
  • Possible decrease of the amount of EI (Employment Insurance) that employees and employers are required to pay
  • Keep the OAS (Old Age Security) payments beginning at the age of 65 (as opposed to Harper’s proposal to increase the age of eligibility to 67)
  • Expand the Home Buyers Plan (allowing money to be withdrawn from your RRSPs to purchase a home) to include not only first time home buyers, but also people who are moving for work or after the death of a spouse and other life changing situations
  • Replace the Universal Child Care Benefit (UCCB); families with total income under $200,000 will receive the Child Tax Benefit which is tax-free (as opposed to the UCCB which was taxable income)
  • No more ‘family tax cut’ also known as ‘income splitting’ which allowed spouses with a child under 18 to benefit from a maximum $2,000 tax credit
  • Tax increase for those whose income is above $200,000 a year pushing the highest tax bracket over 50% (when combined with provincial rates) in the following provinces: Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia
  • Tax rates will decrease for those earning between $44,700 and $89,401 a year
  • Changes to student loan rules for post-secondary education allowing graduates to not have to make any loan repayments until they earn $25,000 a year