The Election Campaign is in its last lap and all the major parties have tried hard in the past few months to convince the Canadian voters that they are the best bet for the future. Taxes are always a hot topic during the elections and all the parties are planning different tax cuts/increases if they are chosen to power.
We are soon going to have a winner but in today’s blog, we discuss different tax related topics for this election and ensure that our readers are the biggest winners when they make their choice.
Donate Tax-Wise: A lot of people are making political donations during the election season. Although we have a federal election underway at this time but it is important for you to know that political donations made to Federal political parties are tax deductible only to the extent of federal tax payable with a maximum tax credit of $650. It is a non-refundable tax credit. However any donations made to provincial political parties in Ontario generate a refundable tax credit. The maximum tax credit for provincial donation is $1330 which is more than double the federal limit. This means the taxpayers are better off making a donation to the provincially registered political party rather than the federal one. So for example, if you support the Liberal Party of Canada, you are better off making a donation to Ontario’s liberal party.
The Promises: All the political parties have come up with their action plan regarding taxes if voted to power. The present Conservative Government introduced Income Splitting and Enhanced UCCB last year. They promise to keep the taxes and benefits same for the individuals while reducing the small business tax rate from 11 percent to 9 percent by 2019. They are also promising an EI premium cut in 2017 which will marginally increase the size of your paychecks.
The Liberal party is promising an increase in tax for people who make more than $ 200,000 annually and they are proposing a 1.5% tax cut for taxpayers who have their income between $44K and $90K with the extra tax revenue they will generate. They are also proposing a smaller EI premium cut as compared to Conservatives in 2017 while extending the EI benefits. The biggest promise of the liberal party is to repackage the UCCB and Canada Chile Care Tax Benefit in a way that it will put more money in the pockets of middle class while lowering the benefits for people with family incomes of more than 200K
The NDP is promising a tax rate cut for small businesses from 11 to 9 percent in 2017 and increased corporate taxes. Both NDP and liberals plan on cancelling the income splitting and the increases TFSA Limit.
Canada is witnessing a very tight race in this year’s election with all three parties coming out as strong contenders to win his election. Overall all the parties are gunning for the middle class vote and this can be seen in their tax promises where they promise that taxes would go down for the middle class and increase for the rich.
However, the bottom line is that Death and Taxes are here to stay and while we will have a winner soon for these elections, Softron wishes that you, the Canadian tax payer turn out to be the biggest winner of all. So go out and vote to strengthen the democratic process and let’s make the taxpayers of this country a big winner !