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:

The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions they’re required to remit to the CRA. It was introduced as part of the government’s pandemic support for businesses. It is already in effect, and we’re sharing the details on how this works.

This new online tax training program is the right one for unusual times in the tax and financial services. Not only does it address the myriad of changes on the 2019 tax return, it also provides an important professional program during an unprecedented health crisis. It is an important training solution for four specific needs:

During this time of uncertainty, more Canadians need to  feel financial peace of mind, and the guidance a qualified Real Wealth Manager™ can provide with a critically important strategy, process and success-oriented skillset. That’s why if you’re looking for continuing professional education, now is a great time earn the RWM™ credentials online. Until March 31 save an additional $50, too.

COVID-19 Response at Knowledge Bureau. We are committed to personal and community safety, so our educational and instructional team is at your side from their home-based offices. It is a good time to stay in touch, by email or phone. We would love to hear from you , even just to know you are okay... so please stay in touch.

Finance Minister Morneau announced a significant relief package of $27 billion today to help Canadians who will have immediate financial consequences from the global pandemic. In these surreal and unprecedented times, these measures will help pay rent, keep groceries on the table and assist with caregiving needs as the economy adjusts to a new normal. There is relief for both workers and businesses, including those people who do not have a safety net under the Employment Insurance Program. This special report provides all of the details.

For individuals and families, the tax filing and tax payment extensions are good news. However, Canadians who are owed refunds will still want to file their returns as soon as possible before the pandemic peaks. Those who owe should consider filing soon as well in order to know exactly how much is due and get their financial affairs in order. Canadians will also want to make decisions about paying down high interest, non-deductible consumer debt as quickly as possible to take advantage of lower interest rates on operating lines and/or business and housing loans. There are, in fact, some opportunities to shore up financial health in these measures that follow: