Don’t shoot the messenger, but it’s likely you’re going to feel an added financial pinch this year.
Forty per cent of Canadians are already taking money out of their retirement savings to pay bills, a recent survey shows. The Bank of Montreal, who commissioned the study, says that the average withdrawal hovers around $21,000 in 2017, versus about $17,000 from 2016.
And things are getting worse, now that we’re in tax filing time.
There could be a whole lot less money in Canadians’ pockets than before, thanks to a number of tax benefits scrapped by the Trudeau Liberals. The newly-eliminated income splitting is one such example.
Previously, if one spouse made $20,000, and another $80,000, they would get back almost $1,900. Not anymore. Today, it’s zilch. (So much for helping the middle class, and those living paycheques to paycheque.)
Adding insult, rebates for youth activities have been chopped. These are the fitness tax credit and the arts credit.
Last year, parents that spent at least $500 on their child’s sports programs would receive $150 back. This year it’s $75. Similarly, parents who spent at least $250 on their child’s arts programs would have received $75 back. Now it’s halved, to $37.50.
You read that right: the Liberals have sliced incentives for parents to get their screen-obsessed kids off their rears.
And, while we’re nickel-and-diming the next generation, gone are the textbook and education tax credits. That was a potential $558 off of parents’ taxes. (Why squirrel away for education, when that money can help pay for Trudeau’s Bahamian and India vacations, right?)
Meanwhile, hard-working Canadians who had hoped to get money back from using transit passes are now out of luck. Up to $263 in rebates, now gone.
Rather strange. Trudeau mentioned climate change at the World Economic Forum in Davos, and sought to be a champion of the environment when signing the Paris Agreement.
You’d think he’d want fewer cars on the road. Instead, he yanks away what was supposed to encourage people to use buses and subways.
All tolled, many Canadian families stand to lose thousands of dollars because of these Trudeau tax laws.
Like our example above with the retirement savings cash-out, that could also result in more people borrowing to keep afloat, according to one company.
“As Canadians will be taxed more, and have fewer tax rebates this year, more people will be seeking loans to cover the gaps,” says Natalie Bell, director of Magical Credit Inc.
“No doubt, in months to come, people will be coming to us for help because the tax man has kept more of their money.”
But hey, the dough for all those $10.5 million awards to ex-terrorists has got to come from somewhere, right?