One of the Liberals’ main promises throughout this year’s Canadian federal election was to implement a middle class tax cut if elected. Well, it’s now official; this promise is to be fulfilled in the coming New Year.
As of last week, it was announced that MPs voted in favour of the middle class tax cut, allowing it to pass the House of Commons. The tax changes are set to begin as of January 1st, 2016, and they will see the income tax rate drop from 22 percent to 20.5 percent for Canadians that earn between $45,282 and $90,563, an income bracket referred to as the middle class. For Canadians that earn more than $200,000 a year, their income tax rate will increase from 29 percent to 33 percent.
Learn more about other changes being implemented by the Liberal government that may affect your finances and investment strategies in the coming year by reading last week’s Winstanley Business Advisors’ post: Upcoming Changes to Your TFSA.
Should you require assistance with your finances before the end of 2015 or at the start of the New Year, do not hesitate to get in touch with us via telephone at 604-922-3930 or by email at firstname.lastname@example.org.
(Image via Pixabay)
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