The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

The Canada Pension Plan (CPP) maximum contributory earnings for 2021 and the new premium rate have both risen, adding another financial burden to both workers and employers as the new year approaches.  With required premiums of $6,332.90, eclipsing maximum TFSA contribution room of $6,000, there may be little left to save for a tax-free retirement. Further, there are several other reasons why this rising CPP obligation may bring the wrong after-tax results over the long run.

Making an RRSP contributions by March 1, 2021  is a smart move by eligible recipients of Canada Recovery Benefits (CRB) if total net income will exceed $38,000. The reason?  A very expensive clawback of the CRB.  

DAC Acuity 2020 set a high standard for virtual conferences - a perfect blend of information, education, inspiration and recreation; this according to delegate Thomas B. Russell B.Sc., MBA, CFP, CLU, CH.F.C. who joined advisors from coast to coast, virtually, to take in the bold thinking and bright insights of incredible speakers over three days of learning and unique online networking opportunities. 

Statistics show that 70.2% of all revenues earned by professionals in the accounting, tax filing, bookkeeping and payroll services results from working with the business sector.  This means if you have built a tax filing business serving individuals and households only, you’re missing out on a big share of the market. Small business needs more help on the road to pandemic recovery, so now is a great time to hone your skills, and earn new credentials to provide this essential service.

Knowledge Bureau is now accepting session proposals from sponsors interested in presenting to a national audience of highly engaged top advisors at the October 17 – 19, DAC 2021 in Niagara Falls. This is your best opportunity to get in front of a national network of thought leaders from the tax, financial services and bookkeeping industries who are highly engaged in growing their practices to meet the challenges of the times.    

"Never confuse a single defeat with a final defeat." - F. Scott Fitzgerald