Middle-class mystery: Did their taxes go up or down?

The Claims: "We've put more money in people's pockets by cutting taxes for the middle class and raising them on the wealthiest one per cent." -- Justin Trudeau, speaking to the media after the election call on Sept. 11 "Justin Trudeau promised to help the middle class. But once he took office, he increased taxes [for] 80 per cent [of] the middle class." -- Andrew Scheer, speaking to supporters in Trois-Rivières, Que., later that same day The Facts:  The promise of a middle-class tax cut was central to the 2015 Liberal campaign. And the party fulfilled it shortly after taking office by dropping the tax rate on earnings between $45,282 and $90,563 to 20.5 per cent from 22 per cent. That was paid for by creating a new tax bracket for earnings above $200,000 with a marginal rate of 33 per cent, up from the old top rate of 29 per cent. The Department of Finance calculates that the 1.5 per cent "middle-class" reduction has benefited more than nine million people, saving singles among them an average of $330 a year and couples an average of $540 a year.The Conservatives' counterclaim is based on a 2017 study from the Fraser Institute, a B.C. think-tank that favours lower taxes and less government spending. That paper attempted to measure the net overall effect of a broader range of Liberal changes to the tax system, including the elimination of credits for public transit passes and children's sports activities and income-splitting for couples with young children — all of which were brought in under the previous Tory government. The Fraser Institute paper calculated that those additional changes by Ottawa turned a gain into a loss for most families with children, with 60 per cent across all income brackets paying more tax as a result. And in the case of middle-class families (defined as earning between $77,000 and $107,000 annually) the study claimed that 81 per cent of them now pay higher taxes — $840 on average — a figure that Scheer has been citing in his campaign stump speech.However, as a number of economists have since pointed out, the Fraser Institute's paper failed to include the effects of what replaced those cancelled tax credits — the new Canada Child Benefit (CCB) enacted by the Liberals. A rather large omission, given that those payments are now worth a maximum of $6,639 a year per child under age six, and $5,602 for each kid between six and 17.For exam ...Read more

Dépenses Sports Politique Cabinet Ancien Million Université Offre Progression Débat Emploi Réduction Base De Données Entrepreneuriat féminin Education Classe Moyenne Peuple Gouvernement Campagne Transit Cession Milieu Poste Argent Discour Conséquence Institut Publication Année Tank Valeur Elections Actualité Finance Média Epargne Statistiques Subordonné Journée Perte Echec Office National de l'éléctricité et de l'eau potable CBC Canada

Articles similaires