The Canadian government has announced a tax break for families. The tax break will allow a higher-income spouse to transfer up to $50,000 of taxable money to their partner in a lower income bracket. In addition, there is also a universal child care benefit plan that will give children six years and under $160 a month. Parry Sound Muskoka MP Tony Clement shares what this means to the families in our community.
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More about the Federal tax break:
- All families with children will benefit from the new measures introduced by our Government. The average tax relief and benefits for these families will be $1,140 in 2015.
- Low and middle-income families will receive two-thirds of the overall benefits provided by the package.
- The Family Tax Cut will eliminate or significantly reduce the difference in the federal tax payable by a one-earner couple relative to a two-earner couple with a similar family income.
- Earlier this month, the Government announced its intention to double the Children’s Fitness Tax Credit and make it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.
- Canadians at all income levels are benefiting from federal tax relief measures introduced since 2006, with low and middle-income Canadians receiving proportionately greater relief.
- Previous tax-relief measures introduced by the Government since 2006 have resulted in a tax reduction of approximately $3,400 in 2014 for an average two-earner family with two children.