Categories: BusinessPolitics

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.

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?

Ali Taghva

Business owner, former EDA President, and a degree in Industrial Relations from Mcgill. Interested in the intersection of politics and culture. I firmly believe in a free media and work to get new stories to your screen each day.

Comments

  • 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

    • 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.

    • 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.

      • 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.

    • They took over 7000 dollars they never should have only to give it back to you? Very efficient...

  • 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

  • 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.

    • 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.

  • 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.

    • $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

      • 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

      • $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?

  • 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!

    • 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.

  • 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

    • 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?

  • $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

  • 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.

  • 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.

  • 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.

  • 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/

  • $3800 in income tax in a two week pay period . Working more gets you less . The Canadian ICEBERG can cram it !

  • 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

  • I am sure he is starting a genocide! It has all the signs!! He will be safe tho!🤬👎

  • 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

  • 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 !

  • 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.

  • 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'.

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Ali Taghva

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