Canada Looks to Lower Personal Taxes
April 8, 2014 Taxation in Canada
TORONTO – The Canadian government will soon try to further lower the taxes paid by “hardworking” families, potentially by introducing an “income-splitting” system.
Canada will endeavor to lower personal tax rates in the near future, according to information provided by Finance Minister of Canada Joe Oliver in a speech given on April 7th at a luncheon hosted by the Canadian Club of Toronto.
The Minister, who was appointed to the position only last month, indicated that the government is currently working towards balancing the national budget, and when the goal is achieved “…our priority will be to provide tax relief for hardworking Canadian families.”
Joe Oliver also said that the decrease in the taxes faced by families will not be accompanied by any increase to government spending, in order to ensure that the tax relief will not be outweighed by increased government debt or a hike to other taxes paid by citizens.
The Minister did not provide any concrete details on how the tax obligations of families might be lowered, but several taxation experts have already suggested that the government may institute income-splitting, allowing couples to “share” up to CAD 50 000 of income for tax purposes.
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