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:

Family business owners typically have most of their net worth tied up in their business. Finding solutions to properly structure the business to allow it to flourish while allowing owners and their families to plan for their future can be difficult, especially if there is little time to explore strategies. This book will outline the options available to the family to ensure they know how to protect one of their most valuable assets.

Unincorporated small businesses have unique tax preparation and planning requirements. Provide superior service to a broad range of proprietorship clients including sole proprietors, partnerships, farmers, fishermen, and professionals. Learn how to complete income statements, capital cost allowance schedules, auto and home workspace schedules, and other unique calculations specific to the profile using the most recent tax laws and budget proposals.

Easily project investment income into the future. Use this calculator to input detailed figures of all the different types of investment income your client may have in the future, based on their current savings pattern. This planner will quickly determine the tax impact on investment income and help you reconfigure solutions when alternative saving strategies are required.

The March 21, 2013 budget is an extensive and far-reaching document, which underscores the depth of the tax reforms Canada is in today. Trust and estate planning will be affected by the proposals as well, as explained.

We accept editorial submissions for the Knowledge Bureau Report from Distinguished Advisors until 5 PM CST Thursday weekly.

I’m a retired widow. My only income is CPP and Old Age Security. I also get the Supplement but lately I’ve been thinking about going back to work part time, maybe one day a week, as a Greeter at Walmart. How will this extra income affect my Supplement?