Lib­er­als’ key elec­tion vow to change in­come tax rates passes through House

Asian Journal - - Nation - The Cana­dian Press

Ot­tawa: The Lib­eral gov­ern­ment’s cen­tre­piece elec­tion prom­ise to raise taxes on the big­gest in­come earn­ers while cut­ting the rate in a lower bracket has passed the House of Com­mons. MPs voted 230-95 to­day in favour of a mo­tion fea­tur­ing a col­lec­tion of tax changes that will siphon about $1.2 bil­lion an­nu­ally from the trea­sury over the next five years. The Lib­er­als had es­ti­mated the com­bined fis­cal im­pacts of the taxrate hike and re­duc­tion would ba­si­cally off­set each other. Start­ing Jan. 1, the in­come-tax rate will drop to 20.5 per cent, from 22 per cent for tax­able earn­ings be­tween $45,282 and $90,563. The rate on all in­come earned be­yond $200,000 will rise to 33 per cent, from 29 per cent. Op­po­nents have said the gov­ern­ment’s tax re­duc­tion should have been ex­tended to also ben­e­fit those who earn less than $45,282.

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