Tax Changes Slash Tax Bills in Canada

December 29, 2016 Taxation in Canada

Tax changes in CanadaOTTAWA – Many Canadians will breath a sigh of relief in 2017, as new tax changes tax effect and slash tax bills country-wide.

On December 28th the Canadian Taxpayers Federation released its annual report summarising the potential effects that upcoming tax changes will have on Canadian taxpayers in the coming year.
It was claimed that the majority of Canadians throughout the country will see an overall drop in their annual tax obligations.

The major changes which will lead to the reduced taxes is a significant alternations to the Employment Insurance premiums, which will save employees an average of CAD 132 in tax each year, and a further CAD 185 per year for employers.

The other major change will be a continuation and expansion of the Canada Child Benefit system, which will predominantly help lower-income households.

It was mentioned that high-income earners …in most provinces will pay more,” but “…for the majority of Canadians, these two changes will mean more money in their pockets.”

It was also noted that there is a possibility that the carbon tax system being implemented in Alberta and Ontario will spread to other areas, which may partially balance out the reduced tax burdens in most provinces.