High income earners face higher taxes, lower child benefits under Liberals

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OTTAWA — Canada’s highest income earners face the prospect of higher taxes under a new Liberal government, but those in the middle can expect a break.

The Liberals have promised to cut the middle income tax bracket to 20.

5 per cent from 22 per cent.

However, to help pay for the cut, the party has promised to create a new tax bracket of 33 per cent for those earning more than 0,000.

High-income earners can also expect to receive less from the government under the Liberals’ plan to eliminate the universal child-care benefit and replace it with a new Canada child benefit that reduces the amount families receive as household income rises.

The party has also promised to eliminate the Conservatives’ controversial income-splitting plan for families and to roll back this year’s increase in the tax-free savings account contribution limit from $5,500 to $10,000.

The Liberals are also expected to restore the eligibility age for old age security and guaranteed income supplement to 65. The Conservatives had introduced a plan to raise it gradually to 67.