KBR Poll: A Huge Opportunity for Tax Reforms

The Knowledge Bureau News Network was vibrant last month, especially in the Knowledge Bureau Report Poll. Over 98% of readers who answered overwhelmingly were in favor of tax reforms and they had some great comments as well. Take a look:

The early-bird deadline for the January 15 Virtual CE Savvy Summit is coming up next week, and you don’t want to miss this event which will deliver an Advanced Line-by-Line T1 Tax Update coveted by tax and financial pros from across Canada.  This full-day live event and accompanying online course will prepare you and your staff for tax season 2025. Receive the “Tax Bible” – Knowledge Bureau’s line-by-line desktop reference – and upskill your team’s knowledge ahead of tax season with low team member rates! Plus, check out new CE Savvy Mini Summits: these are new half-day events drill down on key tax auxiliary tax form filings, including late form releases from CRA for capital gains, real estate and proprietors.

Taking a Knowledge Bureau Specialized Credential can really pay off. According to the 2025 Canada Salary Guide released by Robert Half, earnings are high in the tax accounting industry.  Even those starting out in the field can expect to earn approximately $60,000 to $64,000, with significant upward mobility possible in the future (see details below).  For these reasons, it’s a great time to specialize in this field and register now for our convenient online programming.

December 16, 2024.   Amidst the drama of the resignation of the Finance Minister, the Fall Economic Report itself was shocking in it’s revelation of a projected $61.9 Billion dollar deficit for the year 2023-2024 and another $48.3 billion for 2024-2025, with  no end of deficit spending in sight for the rest of this decade.  This will generate public debt charges that grow from $47.3 billion in 2023-2024 to $69.4 Billion in 2029-2030.  These are swoon-worthy numbers that do not take into account the potential economic fallout of threatened tariffs from the U.S. and the effect this might have on nominal GDP, the indicator of growth (or loss) of tax revenues going forward.  Subscribe to KBR now to get the full report, and check out a summary of the tax measures below.

Winnipeg, which already has one of the highest residential tax rates in Canada,  is the latest city to propose a property tax increase this week.  At 5.95%, this is the largest increase in 34 years and is expected to raise $44.4 million dollars.  What is behind these tax increases, and why, when taken together with the convergence of other layers of tax, is tax reform so urgent in Canada today?

Will seniors be receiving a raise in early 2025?  Unfortunately, not, at least for the first quarter.  Adjustments to the benefits are based on the Consumer Price Index (CPI), OAS and GIS benefits will not be increasing for the January to March 2025 quarter.

Canada’s per capita spending on health care was among the highest internationally, at CA$8,119 and even so, the amount of money Canadians spend out-of-pocket on private health care and insurance also exceeds the OECD average, according to a recent report by the Canadian Institute for Health Information (CIHI).  This is especially difficult for cancer patients, for whom out-of-pocket costs can be astronomical.   A silver lining is that some of those costs may be recoverable through the personal tax system.  Here’s an overview of the kind of write-offs most people miss, and some of the complexities that come with the claims.