OTTAWA Canadian families will pay less in taxes this year thanks to federal tax changes, says the Canadian Taxpayers Federation. But Ontarians arent so lucky. Starting in 2017, the provincial government will introduce the “largest and broadest income tax increase in Ontario history.”
In an annual statement, the non-profit tax watchdog outlined what Canadians can expect in 2015. Though yet to be passed by federal Parliament, this years tax break could offer families a hike in the universal child care benefit for children up to age six, which will jump from $100 per month to $160. Families of children from ages 6 to 17 could get a new $60 per month benefit.
The federal government has also proposed allowing families to income split to save up to $2,000 in taxes by moving up to $50,000 income from one spouse to another.
Ontario is, however, two years away from the start of the Ontario Registered Pension Plan (ORPP). The new payroll tax “will deduct 1.9 per cent of our income, while forcing employers to match the 1.9 per cent, to be directed into a government-managed pension fund,” says Ontario director of the Canadian Taxpayers Federation Candice Malcolm. “Rather than use personalized accounts to ensure that your money stays your money the accounts will be managed by politicians of the day.”