Knowledge Bureau’s elections promises chart– from a tax and financial point of view – has proven to be popular and with less than one week to go, we’ve added information on the costs associated with some of the promises made. The Office of the Parliamentary Budget Officer’s (PBO) estimates of the platform promises themselves are enlightening; as are those presented with the highly-anticipated release of the Conservatives costed platform.
We now know what the cost will be to Canadians for some of the Conservative government’s promises. Their costed platform, which was published only ten days before the election on October 11, states that:
Here's some further insight on the election promises from the Parliamentary Budget Officer:
Knowledge Bureau will provide a detailed synopsis with a Special Election Report on October 23. Be sure to stay tuned in. If you are in the Toronto area, please attend the Vantage Series luncheon at the National Club on October 28 for a post-election Thought Leadership Event.
Bottom line: As these promises keep adding up, the issue for many voters is this: “Can we afford it?” Watching these estimates closely in the days leading up to the election could give you perspective into the correct answer.
Here are the tax changes each of the parties are proposing in their election campaigns in alphabetic order:
Have province collect income taxes instead of CRA.
“Universal tax cut” - reduce tax rate on income under $47,630 from 15% to 13.75%.
Continue CCB implemented by Liberals in 2016.
15% non-refundable tax credit on EI Benefits for maternity & paternity leaves.
Green Transit Tax Credit: 15% credit on weekly /monthly transit passes.
Green Home Tax Credit for energy savings.
Exempt home heating costs from GST/HST.
Revive 15% children’s fitness and arts tax credits and make them refundable. Up to $1,000 for sports activities, and up to $500 can be claimed for arts and learning programs, annually.
Add $1,000/year to the Age Credit claimed by those over 65.
Make the Disability Tax Credit (DTC) more accessible by reducing # of hours per week spent on life-sustaining therapy from 14 to 10 to qualify.
Creation of a Federal Tax Commission focused on establishing a fair tax system.
Require executives to pay full tax rate on stock options received as part of their remuneration package.
Increase the tax credit for search and rescue and firefighter volunteers.
No GST on bicycle purchases.
Basic Personal Amount to gradually increase to $15,000 (from $12,069 in 2019) by 2023-2024.
BPA increase – phased out for those making more than $147,667/year. Current BPA (adjusted for inflation) will continue to apply to those making more than $210,371.
OAS Increase at age 75 – 10% more
CPP survivors’ benefits – 25% increase in maximum benefits
Maternity & Sick Benefits – for parents, tax free EI, plus guaranteed paid family leave, 15 week leave for adoptive parents. Sick Benefits increase from 15 to 26 weeks.
CCB - $1000 more for kids under 1 year, plus an increased Child Disability Benefit - $2800 more
Learn to Camp Program: $2000 for 75,000 kids
Real Estate - Foreign Buyers - 1% tax on real estate owned by foreign buyers.
First-Time Home Buyer Incentive - 10% off the purchase price (more in Vanc/Victoria, and TO).
Review of existing tax expenditures and spending measures
Increase top federal income tax rate from 33% to 35%.
1% Wealth Tax on income over $20 million.
Replace Phoenix pay system and compensate those impacted.
Simplified two-bracket federal income tax system. Income over $100,000 pays 25%. Income between $15,001 and $100,000 pays 15%.
Increase corporate tax rate from 15% to 21%.
Exempt home energy and hydro costs from GST/HST.
Investment Opportunities & Income Splitting
Pledges to eliminate tax on capital gains.
In favour of carbon tax.
Eliminate carbon tax.
Additional educational resources: Interested in learning more about personal or corporate tax issues? Take our online courses from either the DFA-Tax Services Specialist™ or MFA™-Business Services Specialist designation programs. Or, come to one of our CE Summit workshops for an in-person learning experience.
COPYRIGHT OWNED BY KNOWLEDGE BUREAU INC., 2019.
UNAUTHORIZED REPRODUCTION, IN WHOLE OR IN PART, IS PROHIBITED.