Close X
Friday, November 29, 2024
ADVT 
National

Liberals To Proceed With Tax Cut For Middle Earners, Higher Rate For Richest

The Canadian Press, 07 Dec, 2015 01:13 PM
    OTTAWA — The Liberal government is poised to make good on its promise to cut federal income taxes for middle earners by raising the rate on the richest Canadians.
     
    The government will introduce a motion today in Parliament that will slash the income-tax rate on Canadians earning between $44,700 and $89,401 per year.
     
    The Liberals said they would impose a higher tax rate on earners in the top one-per-cent — those who make more than $200,000 per year — as a way to finance the vast majority of the middle-income relief.
     
    But experts say hiking the tax rate on the highest earners won't generate enough revenue to offset the cost of the tax cut because efforts to avoid taxes will probably be greater than anticipated, while the reduction itself could cost more than expected.
     
     
    The Globe and Mail is reporting today that the government will concede this week that the tax hike won't cover the entire cost of its cut.
     
    Combined with the sting of the struggling economy, the new Liberal government is already facing increasing pressure to meet its election vows to cap annual deficits at $10 billion over the next two years and to balance the federal books in the fourth year of its mandate.
     
    The Liberal promise to rejig the tax brackets was a central pledge in the campaign platform that helped propel it to victory in October.
     
    Finance Minister Bill Morneau is scheduled to hold a news conference later today.
     
    Ottawa is also expected to cancel the previous government's move to increase the contribution limit on tax-free savings accounts from $5,500 to $10,000.

    MORE National ARTICLES

    State-Of-The-Art Surrey Tennis Centre Opens In Newton

    State-Of-The-Art Surrey Tennis Centre Opens In Newton
    Surrey, BC – The new state-of-the-art, 12-court Surrey Tennis Centre officially opened its doors on Saturday. 

    State-Of-The-Art Surrey Tennis Centre Opens In Newton

    Military Investigative Unit Joins In Search For Missing Nova Scotia Sailor Benoit Bilodeau

    Military Investigative Unit Joins In Search For Missing Nova Scotia Sailor Benoit Bilodeau
    Leading seaman Benoit Bilodeau, 48, was last seen walking near a bus stop in front of 12 Wing Shearwater on Nov. 21.

    Military Investigative Unit Joins In Search For Missing Nova Scotia Sailor Benoit Bilodeau

    $34.88 Billion In Profits And Other Key Numbers For Canada's Big Banks

    $34.88 Billion In Profits And Other Key Numbers For Canada's Big Banks
    Despite concerns that the sluggish economy, tapped out borrowers and low interest rates could dampen the profitability of Canadian banks

    $34.88 Billion In Profits And Other Key Numbers For Canada's Big Banks

    Manitoba Children's Advocate Will Have New Power To Monitor Kids

    Manitoba Children's Advocate Will Have New Power To Monitor Kids
    WINNIPEG — The Manitoba government is following through on a promise to give the children's advocate more power.

    Manitoba Children's Advocate Will Have New Power To Monitor Kids

    Rising Estimated Costs For 15 Canadian Warships No Surprise: Naval Expert

    Rising Estimated Costs For 15 Canadian Warships No Surprise: Naval Expert
    Ken Hansen, a research fellow with the Centre for Foreign Policy Studies at Halifax's Dalhousie University, is responding to a media report on the price tag.

    Rising Estimated Costs For 15 Canadian Warships No Surprise: Naval Expert

    New Certified Guide-dog Rules Protect Rights Of Handlers: B.C. Government

    New Certified Guide-dog Rules Protect Rights Of Handlers: B.C. Government
    British Columbia has introduced new rules to increase fines for restaurants, transit and other businesses that violate the rights of people who use certified guide-dogs.

    New Certified Guide-dog Rules Protect Rights Of Handlers: B.C. Government