With the recent election soon coming to an end many voters are looking at the party platforms in regards to the implications that each party will generate on the tax scene.
Tax hikes:
The Liberals really want to focus on the transit infrastructure so their plan is to raise 1.3 billion on the tax front by 2016. So who is going to get hit with tax contributing through this? Well for the individual who makes over $150,000 a year they will see their tax go up by 1%. For the smokers they will be paying 1.6% more tax per cigarette, and the aviation industry will see a tax increase. Now on the other side of the coin there will also be some tax incentive decreases like eliminating the small business tax reduction for Canadian companies that make over $10. Million in taxable capital.
The PCS have a different approach where they are touting they would lower the Corporate tax by 1 point once the budget is balanced in 2016. They are also planning on lowering the personal tax rate in 2018 by a 10% average.
Finally the NDP believe they can cover the cost of the transit infrastructure by raising the Corporate tax rate by 1%. Plus they say they will stop the planned phase out of the input tax credit restrictions. Then they would cut the small business tax rate from 4.5% to 3% over the next three years.
What is the point?
We all know that we need to pay taxes if we want to keep our Country in good shape and enjoy the many benefits and features it has to offer. Our Federal tax dollars take on part of this responsibility, but out Provincial tax dollars are closer to home. The transit is undoubtedly in need of an overhaul and basically we the tax payers do own this, so our dollars must sustain it. However, the biggest question of all is the tax dollars overall being spent wisely, and if so would there be a surplus to handle these major tasks when needed? When voting not only do we need to consider what the Political parties have planned for the tax scene, but also how diligent will they be at managing the tax money they receive?
Handling the tax coffer starts with the individual tax payer making sure they do their part in a fair and just way then the obligations of the tax money handling moving up the ladder into the coffers and once there used properly.
