Taxes, taxes and more taxes!
Published in January 2019 by Don Anderson
All three levels of government in Canada have chosen to add or increase taxes to our already high burden, making living and saving more difficult each year. Our personal income tax rates in British Columbia are amongst the highest in North America, with the top marginal rate closing in on 50% of income.
In his report Impact of Provincial Tax Changes on British Columbian Families, Niels Velduis shares the following:
Our federal government advertises that their tax changes allow middle-class Canadians to save and invest more money than before; but, the reality is different. Everyone from carpenters to doctors, investors to pensioners will be paying more taxes now, not less. On top of that, the complexity of the tax calculations seems to grow every year, increasing the effort required to pay taxes accurately.
What’s not in the news often enough is how these tax changes have affected business owners trying to save and invest their after-tax earnings inside their companies. These entrepreneurs do not have pensions on which to lean back later in life; they depend on their business savings. The current federal government is effectively punishing our small business owners – the bedrock of our Canadian economy - by increasing their tax burden and challenging their capability to save and invest inside their businesses.
At Legato, we see the opportunity to offer some tax relief to Canadians and permanent residents through our solutions, at both the personal and business ownership levels. While the details are often discussed with tax accountants and estate lawyers, we like to "explain things in crayon" so the average person can also understand.
If you're not aware of the tax benefits available, please ask your own financial or insurance advisor, or contact us. We'd be pleased to help you dig out from under this avalanche of Canadian taxation.
Don Anderson
Legato
In his report Impact of Provincial Tax Changes on British Columbian Families, Niels Velduis shares the following:
- BC families making less than a $50,000 a year will be paying about $200 more in taxes this year over last.
- The average British Columbian family is facing a $1,000 tax increase this year.
- Families with a higher income will be faced with an increase of $2,000 or more in taxes.
Our federal government advertises that their tax changes allow middle-class Canadians to save and invest more money than before; but, the reality is different. Everyone from carpenters to doctors, investors to pensioners will be paying more taxes now, not less. On top of that, the complexity of the tax calculations seems to grow every year, increasing the effort required to pay taxes accurately.
What’s not in the news often enough is how these tax changes have affected business owners trying to save and invest their after-tax earnings inside their companies. These entrepreneurs do not have pensions on which to lean back later in life; they depend on their business savings. The current federal government is effectively punishing our small business owners – the bedrock of our Canadian economy - by increasing their tax burden and challenging their capability to save and invest inside their businesses.
At Legato, we see the opportunity to offer some tax relief to Canadians and permanent residents through our solutions, at both the personal and business ownership levels. While the details are often discussed with tax accountants and estate lawyers, we like to "explain things in crayon" so the average person can also understand.
If you're not aware of the tax benefits available, please ask your own financial or insurance advisor, or contact us. We'd be pleased to help you dig out from under this avalanche of Canadian taxation.
Don Anderson
Legato