{"id":65597,"date":"2015-11-25T05:12:57","date_gmt":"2015-11-25T11:12:57","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=65597"},"modified":"2015-11-25T05:12:57","modified_gmt":"2015-11-25T11:12:57","slug":"only-few-canadians-to-benefit-from-proposed-middle-income-tax-cut","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2015\/11\/25\/only-few-canadians-to-benefit-from-proposed-middle-income-tax-cut\/","title":{"rendered":"Only few Canadians to benefit from proposed \u2018middle income\u2019 tax cut"},"content":{"rendered":"
\"(ShutterStock<\/a>
(ShutterStock image)<\/figcaption><\/figure>\n

MANILA \u2013 Just how many Canadians will benefit from the middle-income tax cut proposed by the Liberals?<\/p>\n

In the proposed cut, Canadians with taxable annual income between $44,701 and $89,401 annually will be taxed 20.5 percent from the previous 22 percent.<\/p>\n

To compensate the new tax cut, the government will then introduce a new federal tax rate of 33 percent from the previous 29 percent for high-income individuals who earned more than $200,000 per annum.<\/p>\n

Although seemingly a good proposal, all those earning below $45,000 will be excluded \u2013 which comprised majority of the tax payers as shown by the most recent tax filing data and income statistics from the Canada Revenue Agency.<\/p>\n

Of the 26.7 million tax returns filed in the 2012 data, 66 percent or 17.6 million of them earned below $45,000, while only nine million had income above $45,000 and even fewer top earners.<\/p>\n

In a New Statistics Canada data, the top one percent of high-income earners or those who earned around $222,000 or more annually were only 264,030 of the millions of taxpayers.<\/p>\n

\u2018Excessively taxing the talent\u2019<\/strong><\/p>\n

Craig Alexander and Alexandre Laurin of the C.D. Howe Institute argued in a report that the Liberal\u2019s proposal was \u2018at odds with the desire for more entrepreneurial activity\u2019 and feared that the people \u2018run the risk of a brain drain and the risk of being less able to attract foreign talent.\u2019<\/p>\n

\u201cIt is also likely that high-income taxpayers will respond to the tax-rate change in ways that reduce tax receipts,\u201d the<\/p>\n

Alexander and Laurin also asserted that \u2018excessively taxing the talent that fuels a more innovative, creative and successful economy is ultimately self-defeating.\u2019<\/p>\n

The government, for their part, believed that the new tax cuts will bring in about $3.4 billion in the next two years but admitted that this projection may be lower and only reach $600 million as \u2018high earners may attempt to use tax planning strategies to avoid higher taxes.\u2019<\/p>\n

Alexander and Laurin, however, expected the revenue loss to be higher and urged the government to \u2018and \u2018find the most efficient structure of the tax system that generates the needed taxes while also fostering growth and job creation\u2019 and look for ways to\u2026 increase the income pie so there would be more fiscal room to maneuver.\u2019<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA \u2013 Just how many Canadians will benefit from the middle-income tax cut proposed by the Liberals? In the proposed …<\/p>\n","protected":false},"author":33,"featured_media":65614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[249],"class_list":["post-65597","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-rewrite","mauthors-cyra-moraleda","mauthors-philippine-canadian-inquirer"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/65597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=65597"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/65597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/65614"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=65597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=65597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=65597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}