As a Financial Planner I pay close attention to Provincial and Federal budgets and elections. Since the next Prime Minister will be announced in less than a week, I felt it would be a good idea to summarize how the 3 major parties’ platforms (election promises) will affect your personal finances. Let’s take a look:
Conservatives
| Cut the tax rate on income under $47,630 from 15% to 13.75% | Restore full access to the small business tax rate for corporations earning more than $50,000 in passive investment income in a given year |
| Effectively remove federal portion of income tax from EI maternity and EI parental benefits by providing a non-refundable tax credit of 15% for any income earned under these two programs | Create a 20% refundable tax credit for green improvements to homes of over $1,000 and up to $20,000 |
| Remove the Goods and Services Tax (GST) from home heating and energy bills | Boost the adoption expense tax credit to $20,000 and make it fully refundable |
| Bring back the public transit tax credit of up to 15% on monthly and weekly transit passes or electronic fare cards | Reduce the number of hours needed to qualify for the Volunteer Firefighter Tax Credit and the Search and Rescue Volunteer Tax Credit – from 200 to 150 in a calendar year |
| Relaunch a children’s fitness tax credit so parents can claim up to $1,000 for expenses related to fitness and sports activities | Increase the Age Credit by $1,000 per year, per senior |
| Relaunch a children’s arts tax credit to claim up to $500 for expenses related to arts and educational activities | Increase amortization periods on insured mortgages to 30 years for first-time home buyer |
| Increase the government’s contribution to an RESP from 20% cent to 30% for every dollar invested up to $2,500 a year (low-income parents would receive 50% on the first $500 they invest every year) | Reduce personal income tax payable by exempting the spouses or common-law partners of individuals who own a Canadian-controlled private corporation from the tax on split income |
| Remove stress test for mortgage renewals |
Liberals
| Raise the basic personal amount to $15,000 by 2023, for taxpayers whose annual salary is less than $147,000 | Extending EI sickness benefits from 15 weeks to 26 weeks |
| Cut in half the corporate tax paid by companies that develop and manufacture zero-emissions technologies | Creating a Canadian Apprenticeship Service, providing up to $10,000 per apprentice, over four years, for every new position created |
| Put a 10% tax on luxury cars, boats, and personal aircraft over $100 | Eliminate the “swipe fee” on HST and GST for credit transactions |
| Put in place a federal minimum wage of $15 an hour | Add a one per cent annual tax on residential properties owned by those who are not Canadians and who do not live in Canada |
| Increase the Northern Resident Deduction, offering those living in the Northern Zone at least $1,200 in deductible travel costs (or $600 in deductible travel costs for people in the Intermediate Zone) | Increase Old Age Security (OAS) by 10% once Canadians turn 75 |
| Reduce cell phone bills by 25 per cent annually, in part by expanding entry of network operators; if prices haven’t come down after two years, government would lower investment thresholds for new players and empower the CRTC to help get rates down | Increase the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) survivor’s benefit by 25% |
| Implement a guaranteed paid family leave for parents who, for example, don’t qualify for paid leave through Employment Insurance | Expand the First-time Home Buyer Incentive for people in Victoria, Vancouver and Toronto. The value of a qualifying home will go from $500,000 to nearly $800,000 |
| Add provisions to the federal labour code to give employees a “right to disconnect,” giving workers the right to request that they not work extra hours | Help homeowners and landlords pay for retrofits by giving them an interest-free loan of up to $40,000 |
| Cut the cost of federal incorporation by 75%, from $200 down to $50 | Help people buy newly built homes that are certified zero-emissions by giving them a Net Zero Homes Grant of up to $5,000 |
NDP
| Increase the capital gains tax inclusion rate from the current 50% to 75% | Make the Canada Caregiver Tax Credit refundable |
| Roll back the Conservatives’ corporate income tax cuts by 3% points to 2010 levels (18%) | Put in place a new tax credit for graduates to work in designated rural and Northern communities |
| Create a “super-wealth tax” of 1% on wealth exceeding $20 million, including “luxury items” like real estate and investments portfolios. | Re-introduce 30-year terms to Canada Mortgage and Housing Corporation (CMHC) insured mortgages for first time home buyers |
| Increase the top marginal tax rate by 2% to 35% | Create 300,000 jobs through incentives and investments that flow from the party’s “new deal for climate action. |
| Require web giants, such as Netflix, to charge QST and GST, and hold them to the same standards as Canadian cable companies | Create a new, one per cent tax on wealth exceeding $20 million, including “luxury items” like real estate and investment portfolios |
| Close stock option loopholes and crack down on shell companies operating in tax havens | Put in place a federal minimum wage of $15 an hour |
| Put in place a 15% foreign buyers tax on purchases of residential property by foreign corporations or people who are not citizens or permanent residents | Put in place rules to require that part-time and contract workers be compensated equally to full-time workers |
| Put in place income tax averaging for artists and cultural workers | Put a price cap on cellphone and internet services |
| Waive the federal sales tax on zero-emissions vehicles purchases and provide a $5,000 federal purchase incentive | Require employers to spend at least 1% of payroll on training for their employees annually |
| Double the Home Buyer’s Tax Credit to $1,500 | Remove GST/HST on the construction of new rental units |
| Expand the Volunteer Firefighters Tax Credit |
These are the main platform promises that I felt had a direct affect on your wallet, for an exhaustive list of every parties platform, check out: http://bit.ly/35MXB2X
Ultimately, we are lucky to live in Canada, in a Democratic society with the right to vote. This is an important right that we have, that many around the world do not, so exercise your right to vote on October 21st