Chapter 4
"New Year Tax Reductions Won't Make Anyone Rich"
Canadians in 2007 will get less tax coming off their earnings this year. However, it isn't a giant amount and it is barely even noticiable. If you're working alone the increase in money isn't a giant amount. "Those savings will amount to $126 for someone earning $15,000, $82 at an income of $35,000, $106 at $45,000, $106 at $60,000, and $126 at $100,000, it calculates." As you can see it will save just a little money from they gross income you have. The higher income people will save less than the lower income people because of the brackets of tax they're in. On the other hand, families with children gain a bit more because of child care and the Canadian Pension Plan. A family of four could expect $1,545 to $964 depending on where you live. To conclude, taxpayers will save some money from taxes this year, but it is not going to make you have enough to go on vacation.
This relates to chapter 4 because of the goverment taxing. As you can see from the progressive system the higher income people will save less money from taxes and the income levels of $45,000 and $60,000 save the same amount of money. However at the income level of $15,000 you could expect $126 more. Government is letting out some of the money back by cutting the taxes, but are tax rates are still very high.
I think that this tax reduction will help many low income people instead of the high income people because they will not gain much from this. It is good that the government is finally cutting tax rates. Is it really noticiable for the midrange to high income people though? Although it was a reduction in tax rates, I think it was a bit too low.
posted by richardngo @ 7:06 AM
3 comments
3 Comments:
Seeing that the government has made some attempt to lower taxes, unlike former PMs, we get a sense that Stephen Harper is a citizen caring leader. In reality, he is most likely gathering his voter support like in the apology towards Chinese immigrant Head Tax. Correcting past wrongs will bring a clear and bright future and I agree with his actions to unite the citizens for advancing Canada as the strongest middle power of peace. With this GST tax cut, the effects are minuscule, but for low income earners, this can mean more money to go into a fund, to provide for their family, and to earn more from their work. An average citizen earns around $20,000 to $40,000, and this tax reduction will make not much of an impact other than lower prices and $100 less tax. Thinking back, this tax reduction seems to be merely a vote campaign that will secure Harper’s coming election.
Stephen Sung
There is no doubt that reducing tax rates will help low income people becuase even though this current reduction probably won't make a significant difference to some, many low earners of income will be very thankful for it.
Although high income earners will not benefit as much, it wont really matter because they have very few problems when it comes to money. This means that they do not need a helping hand when it comes to paying taxes.
I belive that every little bit helps when it comes to people who are in need of aid financially therefore, a substancial change isn't always necessary; as long as there is change that helps the ones who are in need of it.
The government has a goood start in reducing the tax rates to help the low income earners. Even though the amount isnt huge but it will have some effect to their earnings. High income earners will not have much effect on it because it only will affect people with lower incomes. i think that the governtment is doing the best they can to help low income earners. Most income earners are probably not making enough to support their families with their needs. So with the government lowering the tax it would help them a lot.
Irene Chow
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