Knowledge Bureau Poll: Tax Cut Doesn’t Cut It!

The Notice of Ways and Means Motion was released on May 27, but the 1% tax rate cut going into effect on July 1, didn’t cut it with Knowledge Bureau Report readers who responded to our May Poll.  A decisive 90% of respondents said “No” when asked: does the new government’s promise to cut the lowest personal income tax rate by 1% to 14%, (14.5% in 2025) go far enough to help Canadians impacted by high costs?  Here were their comments and suggested alternatives based on real life experiences with the after-tax income their struggling clients are left with:

Bountiful is literally not on the map. It is the name that the Mormon fundamentalists call the community based at Lister, just a kilometer north of the U.S. border and seven kilometers from Creston.

Got a toothache? Need more prescriptions? When you move up your medical appointments to before year-end, you may also increase your tax refund. That makes a visit to your dentist, eye doctor, or medical doctor a tax wise strategy at year-end.

I am excited about our upcoming national workshop tours with Cameron Peters, President of Trilogy Software, Larry Frostiak, FCA, and Alan Rowell, MFA, DFA-Tax Services Specialist.

With year-end tax planning now in our thoughts, one investment option to consider is the Tax Free Savings Account (TFSA). 

What happens with income earned after death? Most payments received by the deceased after death will have to be returned.

Training costs will not be deductible if they are considered to be “capital” in nature—that is, if they result in a lasting benefit to the taxpayer.