KENORA – It’s tax season again, and that means millions of Canadians are taking a look at what they’ll get back this year, or what they owe. Fortunately, our government has already made some big changes and more will come, following the release of Budget 2016.
As one of its first actions, the Government introduced a middle-class tax cut, and raised taxes on the wealthiest one percent of Canadians. Middle-class Canadians with taxable income between $45,282 and $90,563 saw their income tax rate fall, leaving more money to save and invest, which will help grow the economy.
In total, nearly 9 million Canadians now benefit from this tax cut. Single Canadians who benefit from this measure will see an average tax reduction of $330 every year, and couples who benefit will see an average tax reduction of $540 every year.
To help pay for this middle class tax cut, the Government raised taxes on the wealthiest Canadians, by introducing a new top income tax rate of 33 per cent for individuals with more than $200,000 in taxable income.
Taken together, these changes leave middle-class Canadians with more money on their paycheques by making taxes fairer. I believe that a strong economy starts with a strong middle class.
Starting this July, nine out of ten Canadian families will begin receiving higher monthly benefits through the new Canada Child Benefit. These families will receive an average of $2,300 more per year, tax free. The new Canada Child Benefit will provide a maximum annual benefit of up to $6,400 per child under the age of 6, and up to $5,400 per child for those aged 6 through 17. Families with less than $30,000 in net income will receive the maximum benefit.
This week, we announced an investment of $444 million to enhance the Canada Revenue Agency’s ability to detect, audit, and prosecute tax evasion, both at home and abroad.
Minister of National Revenue, the Hon. Diane Lebouthillier, explained the concrete steps that the CRA will take. This includes bolstering international collaboration to fight tax evasion, creating an independent advisory committee on offshore tax evasion, and beginning work to estimate the tax gap, so that Canadians have confidence in the fairness of the tax system.
The new measures will ensure that the tax system is fair to everyone. Those who hide income and assets offshore, or try to avoid paying taxes will face consequences, while the average Canadian will keep more of their hard-earned money.
I’ll continue to discuss the budget and the impacts it has on Canadians. If you’re interested in learning more, you can always head over to budget.gc.ca.
Bob Nault MP