We just got a tax cut

[Silviawannab]

That's good news for middle income earners.

https://www.liberal.ca/realchange/middle-class-tax-cut/

[ExtraSlow]

Maybe you did, but us ballers just got a big tax hike.

[killramos]

1.5% on one tax bracket. Lol. Glwt.

[firebane]

still sound awesome?


» Click image for larger version

[03ozwhip]

Looks good for us middle class I won't be paying higher for a couple years, maybe by then it will change again anyways lol

[VaN_HaMMeRSTeiN]

This tax cut equates to more money per pay check than I got on my last raise.
Thanks Justin.

[ExtraSlow]

It is minor tinkering, but it's very good optics for them. Creating that new top tax bracket is also good optics, as many people care more about "sticking it to the rich man" than helping out anyone else. Sick perspective but seems to be true.

I would think that for that helpful table that firebane linked to, it's a bit misleading. I don't know if there will be many folks who make over $500,000 per year as pure employment income. I would suggest they will be making a big chunk of that as dividends or capital gains or some other tax advantaged form of payment.

[Nitro5]

Originally posted by VaN_HaMMeRSTeiN
This tax cut equates to more money per pay check than I got on my last raise.
Thanks Justin.

Probably not because CCP and EI will be going up.

[firebane]

Originally posted by ExtraSlow
It is minor tinkering, but it's very good optics for them. Creating that new top tax bracket is also good optics, as many people care more about "sticking it to the rich man" than helping out anyone else. Sick perspective but seems to be true.

I would think that for that helpful table that firebane linked to, it's a bit misleading. I don't know if there will be many folks who make over $500,000 per year as pure employment income. I would suggest they will be making a big chunk of that as dividends or capital gains or some other tax advantaged form of payment.

When I first saw the article I was like right on. Then I saw this spreadsheet and realized that I will only bring home an extra $4. Then I started looking and realized apparently middle class now means to make more than 89/k year.

[Darkane]

Originally posted by firebane
still sound awesome?


» Click image for larger version

I'm reading this wrong or what? Can someone explain to me why the chart tax percentages are not actually matching up to the actual percentage brackets?

Starting 2016 Earners above 200k will be paying much more than it shows there.

[killramos]

The lower tax rates for the middle class is the biggest dupe of the election.

Esp when people who actually make more than 200k per year have access to more creative schemes of avoiding said tax ( ie large portion capital gains, offshore sheltering becomes more lucrative, etc.).


I imagine 90% of the country would call themselves middle class, I wonder what percentage of the country is part of Trudeau's middle class.

[killramos]

Originally posted by Darkane


I'm reading this wrong or what? Can someone explain to me why the chart tax percentages are not actually matching up to the actual percentage brackets?

Starting 2016 Earners above 200k will be paying much more than it shows there.

Nope that is correct. The rate you are seeing is the effective tax rate. Ie total tax divided by total income.

Because income at lower levels is taxed at such a lower level that up top the effective rate never really comes close to the top marginal. Just simple math. Ie at 500k earnings you still only pay around 29% tax even though marginal rate at 500k is 33.

It's truly amazing how many people don't understand how our taxation system works.

[Darkane]

Originally posted by killramos


Nope that is correct. The rate you are seeing is the effective tax rate. Ie total tax divided by total income.

Because income at lower levels is taxed at such a lower level that up top the effective rate never really comes close to the top marginal. Just simple math. Ie at 500k earnings you still only pay around 29% tax even though marginal rate at 500k is 33.

It's truly amazing how many people don't understand how our taxation system works.

Yeah you bet - Fair enough.

For some reason I was under the impression, and it sounded like just reading the Liberal literature that JT was planning a FIXED bracket of 33% for all earnings of 200k+ tax payers.

I realize this is not the case and the bracket percentage points are in place also. A lot of people will not be paying more tax then as a result. Neat.

[Team_Mclaren]

Sweet, i pay 4 dollars less than last year!!!

[M.alex]

booooo

[Buster]

Originally posted by Darkane


Yeah you bet - Fair enough.

For some reason I was under the impression, and it sounded like just reading the Liberal literature that JT was planning a FIXED bracket of 33% for all earnings of 200k+ tax payers.

I realize this is not the case and the bracket percentage points are in place also. A lot of people will not be paying more tax then as a result. Neat.

It is just being shifted to CPP and EI contributions.

Also, Justin plans on funding a lot of his stupid spending through the revenues generated in the top tax brackets. However, there aren't enough people in those brackets now, to make his number work. And with the new brackets, people will start to be more aggressive about sheltering their incomes. I have already begun to do so.

It's actually likely that Trudeau's new tax regime will see a reduction in tax receipts. (Never mind the unemployment, and recession, etc.)

[Silviawannab]

I think it's great. Trying to imagine reactions, if it had been a 1.5% increase.

[The_Penguin]

Originally posted by Silviawannab
That's good news for middle income earners.

https://www.liberal.ca/realchange/middle-class-tax-cut/

TIL: I'm not middle class. By a fair amount. Who knew? Sure feels like it though....

[03ozwhip]

So when does the income splitting veto come into effect? Sorry if a bit off topic...

[rx7_turbo2]

Originally posted by Silviawannab
I think it's great.

How come. Not a dick question, but what about it would you consider "great"?