It is always recommended that as a year comes near its close that both businesses and even individuals start to get their tax matters in order. This is so they can close off the year being well organized and being prepared to get their tax returns done early in the new year. Being as this is an election year with the looming election coming up in mid October it is very difficult for any individual to think of any type of tax planning, until they know which party is going to take office.
While during the campaigns each party is filled with their own promises of what they’re going to do for the country, it is always important to look at what these promises are about, and how factual and realistic they really can be.
The big push for the Federal Liberal government should they get in is their proposed plan is to really escalate their spending, and some very substantial tax cuts over the next four year period. They plan to do all of this and still be able to bring the budget back into balance with a whopping 1 billion left over by the end of that four years.
To get to this surplus it’s going to be as a result of the taxpayers sacrificing once again. The core for this is to get rid of a number of the current tax breaks that many taxpayers find beneficial. Then there is proposed cutting back on government spending which gives no indication exactly what this is, however it’s not likely to be on wages and pensions for those sitting in the government.
More likely it will be on programs that have already been slashed to the very bone and again the taxpayers are going to carry the brunt of this. Then of course there is going to be a crackdown on tax evasion. We have noted some of these crackdowns on tax evasion in the past where it seems to be a big hit on the average taxpayer who is behind a year or two, but there hasn’t been a lot of talk about the off shore tax evasion and what has been done in this regard.
In a nutshell the Liberals feel that their measures will be targeting the high income sector of taxpayers. What is indicated is that when it comes to the tax breaks the Universal Child care benefit, the child tax benefit, and the National Child benefit supplement will be the ones that are hit. Speculation is they would be replaced with a program that would be based on the family income. The Liberals also have in mind to get rid of the income splitting program as well. There are plans which also include bringing in extra money to the government coffers from the employment insurance revenue.
As with any voting. It can be really difficult to sort out what could possibly be promises that will be fulfilled and that which is campaign hype. Each individual has to look at their own situation compared to what the different parties are offering should they be elected. Then determine if they can rely on the credibility of these parties, and make it their voting choices based on what they feel is going to be best for their particular circumstance.