Middle class families about to lose tax-rebates

Don’t shoot the messenger, but it’s likely you’re going to feel an added financial pinch this year.


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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?


64 Comments

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  1. What was America’s middle class’s first clue they’re were heading for harder times? When Obama singled out the middle class for special help! What was Canada’s middle class first clue? You guessed it. When Trudeau singled out his special consideration for the middle class!

  2. I’m done- we have to vote, volunteer, drive others to vote. Convince misguided Liberals to listen to reason and change their vote. Trudeau has to go. Remember- VOTE !!!

    1. Partisan BS wont help anything. Things have gotten worse and worse and we’ve been back and forth with both. Neither have everyday ppls interests at heart – both are screwing everyone down. Its a broken system with lobbyists running the show. If you think ‘getting dem liberals out’ will create any change or benefit – you are part of the problem. If you cant look at the bigger picture your failing this country like so many others.

  3. Let’s look at this rationally. If you have a household that makes $100k per year (as suggested by the 80k+ 20k example) that’s nearly DOUBLE what the average working Canadian family makes. I think we need to get back to basics. Yes, the tax breaks for the privileged have been sliced a bit so that the average families living on average income can afford to live. Maybe if the 1 percenters hadn’t driven wages down so much to pay for their extravagant lifestyle there would be more there for everyone.

    1. Where do you live that an average working family is Only making 50000. Middle class families are the ones making around 100000. A 50000 income for a whole family is let’s face it poverty. Two incomes will be around the 100000 mark and that’s barely enough to live for a family with 3 kids

      1. It is actually the average. And those are also the people who receive 1900+ back plus better benefits. The people making over 80000, are the ones who get screwed over. No matter which government is involved.

        1. thank you!! this guy write the article like the truly poor are going to be poorer. if you can afford to put your kid in sports programs then you’re not that poor! If you can take 21,000 out of your RRSP you’re not poor. what a load of crap this article is, it’s just this dude’s opinion. I may have listened if hed’ not thrown in the jab about Trudeau traveling, but it just shows me he’s taking up the American style of “half truth reporting”

          1. First of all, you have to learn that people who save are not necesarrily any richer than you are. Maybe, just maybe they do with out. I watch younger people and cannot believe how much money they spend foolishly. Plastic toys, money for crappy treats etc, etc. They have all the adult toy et etc. Garage doors left open show you how much junk people have and they they complain they do not have enough money for this or that. Yet they have computers, (very expensive) and I phones (very expensive. You my young lady have to learn to do without so you can have some savings. Why would you worry about the person who puts their children in any type of sports etc program. I did, We did not have curtain. We did not buy toys for the kids, we did not buy a lot of clothes. I made all my meal and all the sauces and all the condiments. I had a garden. i saved thousands of dollars by doing this. There are lot of ways you can save. RRSPs are a perfectly good way to save (if you do not spend foolishly) Now that we are of age where we use our RRSPs it saves the government lots of money. Savers are really important. After all you may live longer than you think and why, just why should I pay for you to live. Work hard, spend less and save.

      2. Here in Nova Scotia , a household bringing I. 100,000$ would be Doug quite well .
        Even making more than min wage , one person may bring in only make 30,000$ a year

        1. And how much is the hosing in Nova Scotia ? Because here in Alberta I pay 1800/month rent for very modest 4 bdr home. Having 3 kids I can’t rent smaller. Add 500/month utilities, 600 daycare and 200 insurance. Nothing left for food out of this “extravagant “ income.

          1. In Kelowna, a three bedroom apartment/condo is $2000.00 a month, plus utilities, plus extra parking if you have 2 cars. (which most 2 income families have to have to get to work, since there is virtually no public transit that goes anywhere in this town.) A house? well plan to pay upwards of $3000.00 (if you can find one to rent, which you can’t). It’s all ridiculous, and something has to change! The incomes mentioned here would barely cover basic living expenses for a family, because … food, insurance, shoes for the kids.

        2. And houses in Nova Scotia are no where what a house in Calgary costs. Where i originally came from you could buy a house for 45 to 60,000. We came to Calgary. Houses were $200,000. 6 month later they were $400,000. So quite your complaining. Houses in Nova Scotia can be bought with a $30,000. job. In Calgary you have to have at least 2 people earning over $200,00.

      3. I made under 20k last year and I live in Alberta and putting a kid through college.

        If I ever get back to a 100k year Trudeau can take the rebate and shove it up his carbon free shit dont stink ass. But, you know, need to have a stable economy first.

      4. Lol i have three kids i dont make anywhere near 100k and we are all alive… just getting by but shows how ridiculous your sratement is

      5. you are on crack!!!! most canadians make 34,500 per year.. Lucky to see 60K in a dual income house. wake up idiot!

        1. I don’t know where you live but your definition of “most Canadians” must not include many employed and over 30 in BC, AB, SK and even MB… I am not sure about east of that, but I have freinds in Toronto that have family incomes over $150k a year and they can’t qualify for mortgages….and houses, expensive ones are still selling in that market…. So what is most Canadians to you? Cause most of those Canadians don’t live in my moddle class Neighborhood in Central Alberta where the cheap townhouses down the street are selling for $180k… I could move an hour from the city and save tonnes on housing…. But then spend it again on fuel and time away from home…

      6. Check Canada stats. there are many living under 35-20-10 thousand per year. Many with disability or dependent on social security are in the 10-20 range.

    2. Get fucking real. I work over 300 hours a month to make over 100k a year and get taxed almpdt 40 percent as is, so take more from people who are willing to bust their as apposed to people who aren’t? Thats why this country is in the shitter. Lazy and greedy.

      1. EXACTLY RIGHT! My husband doesn’t even LIVE AT HOME 8 MONTHS OF THE YEAR!! He lives in a horrible little camp with 30 other greasy guys, sleeping on cots so small he cant move!! FOR WHAT? So that 40% can be sliced off the top right to the gov, then taxed and taxed and TAXED AGAIN after that? So that we can pay a now TRIPLED energy bill in the winter now that the second level of carbon tax and all the other STUPID moves the NDP did to screw it all up? So that we can now support my senior parents and disabled adult sister b.c NOW they have to rent out their home b.c THEY CANT AFFORD TO LIVE IN IT? They can suck off with their ‘you make so much money’…BS, TRY PUT A DIME AWAY FOR ANY RETIREMENT WHEN WE ONLY HAVE ANOTHER TEN YEARS LEFT TO WORK. ADD to that this industry is so up and down you NEVER KNOW IF YOUR WORKING THE NEXT WEEK, MONTH… YEAR~!! AND NOW TRUDEAU IS OUT TO TOTALLY DESTROY IT.

    3. Oh my goodness you fool. You should be happy that the EDUCATED and ENTREPRENEURs are going to be hot the hardest because that will probably mean less jobs for assholes like you who do not want to put yourself out to get EDUCATED or become an ENTREPRENEUR. Guys like you are a dime a dozen. Can’t stand your jealousy of some people who have taken chances to make more money. So SHUTUP if you can only condemn other people. If I make more money then you, I have the right to have nicer things. Also for every $ you make we do pay more than you.

      1. Awesome comment!! THAT IS WHY PEOPLE GET EDUCATED, WORK HARDER/MORE HOURS.. INVEST EVERY DIME THEY OWN INTO BUSINESSES AND THEN DEVOTE THEIR LIVES TO MAKING THEM SUCCESSFUL, —- SO THEY CAN EARN MORE MONEY!!!! FOR THEMSELVES, NOT FOR SNIVELING – ‘OH THOSE BAD 1%ers’ LOSERS!! Ugg they drive me NUTS!!

    4. Sorry but in my house in Nova Scotia we make a combined income of under 60,000 per year ( with 3 kids ) and since fucktard has been in charge we owe in to taxes ($1000 + ) each year. Which has never happened before.
      Now please…. tell me this is rational

      This imbosil has to go!!!!!!

    1. Nobody has mentioned the thousands of seniors who are living (barely) on a subsidized income of less than $24,000 annually. They can’t even afford to have an email address to read this stuff. But our so called politicians were generous enough to raise their OAS by 53 cents a month. This is fact and not humor. Maybe Sharia Law is better than what we got.

      1. I am a senior and my husband and i this year income tax had an income from oas and cpp of a bit over 35.000so they took away our little extra and said we make too much ,now try to live on that per year and this is true facts no joke !!!!!!!!!!!!!!!!!!!

  4. That is a great article too bad no one in government is listening. Why are the opposition not jumping all over this. Don’t slam him for stupid vacation spending, slam his tax reforms and the promises he made to the middle class which he is not keeping, come on opposition it is there for the taking.

  5. I love reading these things with no links to the source of the information. Can the author please include a reference or something as to the source of the facts presented? It goes a long way for the reader to trust the information being presented.
    Thanks!

  6. The conservatives ARE asking the questions but the Liberals as in Justin Trudeau don’t answer them. He shows complete lack of respect for the rules of the House of Commons.

  7. I just did my taxes, I’m a millennial, I’m getting 7000 back. Just horrible. It would have been like 7420 if this didn’t happen. Oh poor me lol

    1. Nice for you…congratulations. Turn a blind eye to the people around you who don’t have things as good as you do. Go out for dinner. Have a nice steak and some wine, Enjoy!! Keep your head in the sand.

      1. Blycar, yes it is nice for people to get some money back. first of all the government is taking too much away. here i a perfect example lets say Joe Blow make 50,000 a year and stay in a certain tax bracket. Maybe he gets 5000 back. But if his sister makes 55,000 a year she only gets back $3000. Why is that? Because the government made it impossible for people to earn more pay than Joe Blow , so they take it away. In other words bigger earners, who may have joined the work force later in their lives because they had to spend thousands and thouands and thousands to be able to work in their specific field. They have to pay that back also, but because they earn more because they are professionals or are in a specific high paying job, (like doctors) for instance, they are automatically expected they do not need the money. I know a few doctors and they do not clear what you would think they would because they have big expenses and then Trudeau and people like you expect them to pay the government first . Same for small business men. Making a big profit is not really making a big profit because they have to pay all their expenses and now Trudeau is charging them more taxes out of their profit , so they have less to pay their employee and goods needed. So in the end, maybe the peron who had a profit of $100,000 will have to lay off some of his employees. You see Blycar, you cannot have it both ways. A dear friend of mine just told me a couple of day ago, he will have to lay off one of his best employees because he has not choice. It is either pay Trudeau or pay the employee. Trudeau and our premier Notley has made that stupidity possible.

    2. Hope your using it to pay off those student loans you are getting the credits from. Unless mom and dad shelled out to cover those for you already. That would have been nice. I had those type of tax returns for about 4 yrs.. every one slammed right to my loans.. and managed to get them down to 30,000 from 70,000 in the past 7 yrs. Much slower going now that my return is 23$. Be smart, count your blessins.

  8. The worst kick for low and middle income families is the new minimum tax payable. Last year I got $4,500 back, same numbers this year capped at $3,000 – no matter which credit I added after, it wouldn’t go above $3,000 because I can’t get more of the taxes I paid back. Last year the minimum was only $500

  9. Anyone making $100K or under are part of the poverty class. Realistically there are only two classes; elites like Trudeau and the working class who have to worry about how to cover bills come retirement.

    1. Retirement? We have a family income under $80k, two kids, our home is modest, I drive a car I bought new in 2003, my wife gets a new family hauler every 4 years and we invest in our children, they do sports, music and art and I have committed to cover at least half of thier education…. I lost a business and everything with it in 2012…. I will work until the day I die.

  10. To some people,100k sounds like a lot of money for a family to earn.Try raising a family on 100K per in Vancouver. Good luck.

    1. $100k a year is not poverty, thats absurd, it’s not even middle class. I know tobsof people (entire families) that live on under $40k, some well under. Reading what equates to wealthy peolple complaining how little money they have is pathetic, maybe open your eyes and have a look around at the real world

      1. $100k/year for a family in Vancouver is not enough. I live 45 minutes outside of Vancouver and to rent a 3 bedroom townhome you are looking at $2400/month on average. It costs way more to live out here. I could not alone survive on $40k/year even if I rented a 1 bedroom basement suite. Also since when did we simply accept “getting by” as OK? Why not set people up to THRIVE rather than just living?

      2. It’s very relevant to where you live, how you get to work and other variables, but our standard of living is going down, and our debt is going up.
        Faster with two days

  11. what a ridiculous opinion piece! Those poor upper middle class folks that have their kids in programs all week so that their not on the expensive iPod you bought them all the time … puhleezzz!!! oh and the 21,000 they’re going to take from their RRSP … again puhleezz!! if you have the money to put your kids in programs you’re not doing so bad. if you have you RRSPs you’re not doing so bad. and to put trudeaus travel in this article is totally misleading BS!! grow up!

    1. No, you’re not doing so bad if you are very diligent with your finances and can afford to put your kid in a sports program, or regularly put money into your RRSP savings. That doesn’t mean you’re living the life of luxury. It means you’re busting your hump to make those things happen. Big picture here: many people don’t have the RRSP to fall back on and are only just barely able to afford giving their kid that one sports program they go to once or twice a week for 4 months out of the year. Do you think the loss of these tax credits is going to make affording those things easier or harder? Trudeaus choice in expenses is mentioned because that’s where our tax dollars are going. I personally would rather get them back and spend them on my kids sports or put them into an RRSP for my retirement, or maybe just pay for the astronomical hydro bill I have every month in Ontario, instead of letting them be spent in the ridiculous frivolous way they have been by this government.

  12. If you think a couple who makes 100,000 a year between them is middle class, then you are insane.

    If people are living pay cheque to pay cheque at that level, then they are utter morons and imbeciles

    1. Steve Guptill, thank you for your flattering comments. Some people that are living paycheque to paycheque are doing so because they are paying back student loans that cost as much as a mortgage payment each month so that they can work in the job they needed that education for in the first place. How’s the view from your moral high horse?

  13. $100k a year is not poverty, thats absurd, it’s not even middle class. I know tobsof people (entire families) that live on under $40k, some well under. Reading what equates to wealthy peolple complaining how little money they have is pathetic, maybe open your eyes and have a look around at the real world

  14. People are throwing incomes around like certain numbers make a difference. Its all relative to WHERE you live and cost of living. If you live in Toronto or its suburbs in Ontario and have a dual income around $100,000 – Im sorry, but that is not elite 1% or rich. When housing is 500-1.5 million for a townhouse to small home and youre paying 36% income tax in addition to all the other taxes you pay on basically everything – thats surviving middle class. If you live in Nova Scotia etc., your cost of living will be lower and also your income on average. If you’re out in BC or Alberta it will jump again – wages, cost of living AND taxation. Ppl making that 60-150,000 range may seem like they make more $$ but theyre paying more in taxes without seeing much return. When youre making HUNDREDS of thousands or MILLION/S of dollars then thats a different story….But middle to lower middle class gets screwed in my opinion. That said I can understand when ppl say ‘at least you HAVE a home’ or ‘you CAN put your kid in sports’ but that doesnt go without sacrifice. That ‘disposable income’ is accounted for.

  15. These tax differences sta0rted last year. For 2016 tax year. All of which is BS as parents and middle class families receive nearly the same yearly monthly payouts.

  16. Feel the pinch this year? What?? HHAHA I have never known life without being pinched!!! I have massive student loans, skyrocketed rent, food costs are insane, cant save a down-payment in this market.. and good luck finding a job with benefits that pays over 45,000. I cant remember the last time I traveled and my weekly entertainment (that includes eating out budget) is $20. Im 33 and would have liked to have kids, but its just to unaffordable. So better keep on bringing in those ‘job stealing’ immigrates *(well, they are better at tech then our kids with our terrible education system, so maybe its for the best!).
    Liberal, Conservative.. all the same. No one has made it better and no one aims to. The SYSTEM needs changing.

  17. I think we’re talking gross income before deductions. One could also consider net worth. Two full time adults with two children to raise, making $100,000 a year, doesn’t make that much money after all the bills are paid, but I would call it middle class. The same family making $50,000 is low income. Take a look at other sources.. https://www.theglobeandmail.com/news/politics/who-are-the-middle-class-anyway-how-politicians-risk-missing-themark/article26431270/

  18. well 100 k is nothing living in newfoundland, the cost of food here is gone up so much that the food banks re empty. its cheaper to feed your child kraft dinner and pepsi every day then trying to make a well balanced meal, its insane

  19. This guy is making these small cuts here and there so a portion of any debt he has made can be paid so he can say here look and pat himself on the back meanwhile its your money he is using all along the way and liberals will say he’s a superstar cause they have no clue what a real politician looks like

  20. Likely will be more tax exemptions cut to pay for all the illegal border jumpers coming into Canada ! But the pot smokers will be happy !

  21. I thought Pierre Elliot Trudeau was the worst PM of Canada until Justin came along. The Trudeau Liberals are quickly ruining the country I love.

  22. Yes, those special interest items were scrapped as they mostly helped higher income parents who could afford to have their kids in soccer and in higher education. They were replaced with higher child benefits that parents received based on income. Lower income…higher benefit with the net result of lifting more children out of poverty. Stephen Harper kept going on and on about special interest groups and then kept putting in these nickel and dime appeasements for special interests. A single benefit unrelated to getting a tax refund, paid monthly, has gone far further to satisfy the supposed claim of ‘helping children’.

Ali Taghva

Business owner, former riding President, and Bachelors in Industrial Relations from Mcgill. Interested in the intersection of politics and culture. I firmly believe in a free media and work to push new stories to your door each day.

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