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Liberals Back In Tax Action

Ontario Liberal and tax hikes

Well now that election is over and we seem to be right back where we started from, the Liberals have stepped forth with the same basic budget that forced the election to begin with.   Of course everyone wants to know what the final word is going to be on the tax situation.

It would seem that with every budget there is always doom and gloom and a little smattering of good news.   It appears as this little financial sweetener is always thrown in there to act as a smoke screen for the real jest of the financial planning.   In some cases it makes it a little easier to take.

Overall those who seem to be going to be the biggest hit in regards to taxes are those who make $150,000.   Perhaps at first thought this is good news because it leaves everyone else alone, and besides those making this kind of money can surely afford an increase in taxes.

Even if a tax hike does not affect you it is important to look at both sides of it.   Many people who are in this type of money making bracket have worked long and hard to get there.   It may contain people who had to endure and pay for years of schooling and going without many of the enjoyments of life during this time.   Doctors spend years both in time and finances during their training and the same for lawyers and may other types of professionals.   Once could say they fought hard and long to get to this type of income bracket and now they are being penalized for it.

However, they may be the only viable source for the Government to glean the funds they need to progress with some of the other parts of the financial budget.

Then even though you may wish that you were in the $150,000 bracket and would gladly deal with this problem, you aren’t so you are glad it’s not affecting you.   The question is though, could it be indirectly?   People that are in this bracket tend to spend more albeit maybe even on luxury items, but they still are substantial shoppers.   Without those who shop where would the economy be?   Even though they make good money some of it does end up back into the economy.   So when shopping it creates a demand for products, which in turn creates a demand for workers.   Although this is just a drop in the bucket of what affects our economy,every little bit helps.

In any event, no matter what income bracket you are in make sure you do some good creative planning by using a Toronto accountant to help you with this and your tax situation, so you can make more of your hard earned dollars.

 

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Sam Seidman, CPA, CA, LPA
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