Based on news from Department of Finance, the Government of Canada is moving forward with a proposal that would put more money in the pockets of Canadians. The proposal is to amend the Income Tax Act to lower taxes for the middle class, and people working hard to join the middle class, by increasing the Basic Personal Amount (BPA) to $15,000 by 2023.
The enhanced Basic Personal Amount would help to make life more affordable for Canadians. It would mean that middle class Canadians, and people working hard to join the middle class, would pay no federal taxes on the first $15,000 they earn. This planned to be implemented in over four years, starting in 2020.
When fully implemented in 2023, single individuals would save close to $300 in taxes every year, and families, including single parent, would save nearly $600 every year.
The Government also proposes to increase two related amounts, the Spouse or Common-Law Partner Amount and the Eligible Dependant Credit, to $15,000 by 2023.
*This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.
** The news are published at Department of Finance Canada website December 9, 2019