Canadians keep more of their own money

  • Apr. 8, 2009 5:00 a.m.

Blaine Calkins, MP for Wetaskiwin welcomed the news that

the tax changes outlined in our government’s Economic Action Plan came into effect on April 1, 2009.

“Our Conservative Government is focused on the economy and is putting the needs of Canadians first,” said Calkins. “Beginning this week, Canadians will be holding on to more of their money with each paycheque as a result of the personal income tax cuts contained in our government’s Economic Action Plan.”

The Government of Canada has moved quickly to make available the $2.4 billion in tax reductions that it had proposed in the 2009 Budget. Tax reductions are an essential part of the government’s effort to stimulate the economy and help build a solid foundation for future economic growth, more jobs, and higher living standards.

Important tax measures have been introduced for Canadians from all walks of life, and in particular for low and middle-income earners, families, and seniors. “These measures will put more money back into the pockets of Canadians,” said Calkins.

Background

1. The Government of Canada has moved quickly to make available the $2.4 billion in tax reductions that it had proposed in the 2009 Budget.

2. This amount is part of the total of $20 billion in personal income tax relief over five years that the Government of Canada promised to Canadians.

3. The Government of Canada is focused on the economy and is putting the needs of Canadians first.

4. Tax reductions are an essential part of the government’s effort to stimulate the economy, to help build a solid foundation for future economic growth, and to create jobs.

5. Important tax measures have been introduced for Canadians from all walks of life, and in particular for low and middle-income earners, families, and seniors, beginning in 2009.

6. These measures are putting more money in the pockets of Canadians now.

7. The Canada Revenue Agency has already issued revised payroll tables to employers to reflect the tax reduction measures, and employees should see a difference in the net amount on their paycheque resulting from the increase to the basic personal amount and the changes to the tax brackets.

8. The basic personal amount has been increased from $9,600 in 2008 to $10,320 in 2009, allowing Canadians to earn more income before paying federal income tax.

9. The same increase applies to the maximum spouse or common‑law partner amount, and the maximum amount for an eligible dependent.

10. This amount will continue to be indexed beginning in 2010, so that it increases every year in accordance with inflation rates.

11. The upper limit of the two lowest personal income tax brackets has risen by 7.5 percent above 2008 levels, so that Canadians can earn more at lower tax rates.

12. For 2009, the upper taxable income threshold for the 15% tax bracket is going up to $40,726. You will only be taxed at the higher rate of 22% if your taxable income is over that amount.

13. The Government has also moved the upper taxable income threshold for the 22% tax bracket up to $81,452. The 29% tax bracket remains unchanged, starting when your taxable income reaches $126,264.

14. For a family with a total income of $15,000 to $30,000 in 2009, the tax savings will average $168.

15. For a family with a total income of $45,000 to $60,000 in 2009, the tax savings will average $356.

16. For a family with a total income of $60,000 to $80,000 in 2009, the tax savings will average $473.

17. For a family with a total income of $80,000 to $100,000 in 2009, the tax savings will average $614.

18. Many families will receive further federal child tax benefits because the income levels where the benefits start to be phased out have been increased.

19. The changes to the taxable income thresholds affect not only the Canada Child Tax Benefit, but also the Child Disability Benefit and the National Child Benefit Supplement.

20. Taxpayers who are 65 years of age and older will be interested to learn that the maximum age amount is greater than before.

21. For 2009, the maximum age amount will be increased by $1,000, from $5,408 to $6,408. This will provide seniors with tax savings of up to $150 for 2009. The maximum age amount will continue to be adjusted annually to account for inflation.

22. If you’re planning any renovations to your home, you may be eligible for a non-refundable Home Renovation Tax Credit.

First-time home buyers should take advantage of the First-Time Home Buyers Tax Credit and should also get information about the Home Buyer’s Plan.

For information please contact:

Blaine Calkins, MP

403-783-5530