The Canadian Taxpayers Federation (CTF) has crunched the numbers and the federal government’s Family Tax Cut (FTC) along with enhancements to the Universal Child Care Benefit (UCCB) will give many Canadian families a considerable tax break this taxation year.
As part of its annual New Year’s Tax Changes report, the CTF has calculated the tax savings for families from the retroactive implementation of the FTC combined with the UCCB enhancement.
“The range is wide, from a few hundred to over $2,500, but there’s no doubt Canadian families will have more money in their pockets as a result of these changes. “Single-income, two parent households, and two-income households where earnings are most unequal, will benefit most.”
It should also be noted that for all the good news, bracket creep will continue to punish taxpayers in Manitoba, Prince Edward Island, and Nova Scotia. Further, individuals with no children do not benefit from the Family Tax Cut and will see small increases due to higher EI and CPP income thresholds.
While most provinces adjust their tax brackets for inflation, ensuring that salary increases that match inflation don’t push earners into a higher income tax bracket, provinces that don’t index punish workers and leave them worse off. It’s shameful a province like Manitoba will squeeze an additional $21 from those who only make $15,000 a year with this hidden tax hike.”
You can check out the 26 different income and family scenarios tax changes that will be occurring on January 1st on the CTF website.
Aaron Wudrick,is the Federal Director for the Canadian Taxpayers Association.
