THUNDER BAY ONTARIO ---- January 4, 2015 -- Retroactive changes from Family Tax Cut mean big savings for many Thunder Bay, Ontario families Changes to Universal Child Card Benefit will also mean more money for all families with children under age 18 Bracket creep hurting taxpayers in Manitoba, Nova Scotia and PEI
: The Canadian Taxpayers Federation (CTF) has crunched the numbers and the federal government’s Family Tax Cut (FTC) along with enhancements to the Universal Child Care Benefit (UCCB) will give many Canadian families a considerable tax break this year.
As part of its annual New Year’s Tax Changes report, the CTF has calculated the tax savings for families from the retroactive implementation of the FTC combined with the UCCB enhancement. Some examples include:
· $639 for a two-child, two-income family in Quebec earning $30,000 per year.
· $1,519 in tax savings for a two-child, one-income, two-parent family in Alberta earning $60,000 per year.
· $2,489 in tax savings for a two-child, one-income, two-parent family in Ontario earning $80,000 per year.
· $2,386 in tax savings for a two-child, one-income, two-parent family in Nova Scotia earning $100,000 per year.
“The range is wide, from a few hundred to over $2,500, but there’s no doubt Canadian families will have more money in their pockets as a result of these changes,” said CTF Federal Director Aaron Wudrick. “Single-income, two parent households, and two-income households where earnings are most unequal, will benefit most.”
Wudrick also noted that for all the good news, bracket creep will continue to punish taxpayers in Manitoba, Prince Edward Island, and Nova Scotia. Further, individuals with no children do not benefit from the Family Tax Cut and will see small increases due to higher EI and CPP income thresholds.
“While most provinces adjust their tax brackets for inflation, ensuring that salary increases that match inflation don’t push earners into a higher income tax bracket, provinces that don’t index punish workers and leave them worse off,” said Wudrick. “It’s shameful a province like Manitoba will squeeze an additional $21 from those who only make $15,000 a year with this hidden tax hike.”
CTF calculations for the tax changes that will be occurring on January 1st for 26 different income and family scenarios can be found here