I did a little research into the Liberal Party’s proposed changes to Federal tax rates.
What seems to have not received much attention is that this tax cut doesn’t have any effect for people with incomes less than $47,700, which is roughly 2.4 million BC residents.
Using the Stats Canada individual income figures from 2013, That means only around 1 million BC residents (27% of the population) will see any tax relief at all.
- Income between $47,702 and $89,401 will see a new, lower federal tax rate of 20.5% (down from 22%) on = $670 reduction.
- Income above $200,000 will see a new higher federal tax rate of 33% (up from 29%).
- The break-even point on this is a taxable income of $216,750. For all income above this, your total tax payable will increase by 4%.
As for timing, I would anticipate this coming into effect for the 2016 tax year.