Close X
Friday, November 15, 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

    Strain Of E. Coli Tied To Costco Chicken Salad Is More Dangerous Than Recent Chipotle Outbreak

    Health officials urged people who bought chicken salad at any U.S. Costco store on or before Friday to throw it away, even if no one has gotten sick.

    Strain Of E. Coli Tied To Costco Chicken Salad Is More Dangerous Than Recent Chipotle Outbreak

    Saskatchewan Gets Failing Grade On Moving To Reduce Tobacco Consumption

    Saskatchewan Gets Failing Grade On Moving To Reduce Tobacco Consumption
    REGINA — The Opposition NDP is calling on the government of Premier Brad Wall to take more steps to reduce tobacco consumption in Saskatchewan.

    Saskatchewan Gets Failing Grade On Moving To Reduce Tobacco Consumption

    Syrian Refugee Population Expected To Face Mental Health Challenges

    Dr. Kwame McKenzie, a psychiatrist with the Centre for Addiction and Mental Health, says challenges for newcomers often stretch far beyond post-traumatic stress disorder following time in war zones or refugee camps.

    Syrian Refugee Population Expected To Face Mental Health Challenges

    United Way Launches Appeal In British Columbia To Assist Syrian Refugees

    United Way Launches Appeal In British Columbia To Assist Syrian Refugees
    United Way of the Lower Mainland says 40 per cent of the new arrivals will be children under 18 and will require settlement and community integration support as they adjust to life in Canada.

    United Way Launches Appeal In British Columbia To Assist Syrian Refugees

    Big Corporate Christmas Parties On The Outs In Calgary As Oil Downturn Continues

    Big Corporate Christmas Parties On The Outs In Calgary As Oil Downturn Continues
    CALGARY — The era of the big-ticket corporate holiday bash appears to be on life support in Calgary.

    Big Corporate Christmas Parties On The Outs In Calgary As Oil Downturn Continues

    After Feasting On One-goal Wins Last Season, Close Isn't Cutting It For Canucks

    The club feasted on one-goal victories in its return to the playoffs last season, finishing with a 22-9 record in those games, good for second in the NHL.

    After Feasting On One-goal Wins Last Season, Close Isn't Cutting It For Canucks