Wednesday, May 03, 2006
I would have preferred for the income tax rates to stayed the same, but I understand the tinkering that was needed at the lowest rate. The increase to the personal exemption will mitigate the pain for most of us.
At 35,000 the .25% increase means we have to pay an additional $60 bucks or so, but since I spend more than a six thousand a year on GST-able items, chances are I will get that back with the gst cut. (for the mathematically challenged = 35,000 less 8000 exemption = 23,000 taxed at lowest rate - .25% of $23,000 = 57.50 where as 6000 * 1% gst savings = $60)
The rest is pretty good, but I have some general problems with all the tax deductions. We are trying to encourage certain lifestyles through tax credits. Is this any different from the Liberals trying to encourage certain lifestyles by throwing tax dollars at them? I know my conservative brethren will say that you have a choice to use those credits, but I would prefer no coercive spending and no coercive tax credits and just an overall reduction in the tax rate. Let me spend those dollars as I see fit.
Now I am off to Calgary on business, so no posts until Friday.
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