Federal tax changes in the New Year

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Ruby Sahota, the re-elected Member of Parliament for Brampton North, shared information about new tax changes at the federal level in a press statement.

These changes include:
• Increasing the Basic Personal Amount (BPA) to lower taxes for close to 20 million Canadians and phasing it out for wealthy individuals, which will save individuals nearly $300 and families nearly $600 in additional taxes. For 2020, the BPA will increase to $13,229.
• Adjusting the Rate of Inflation: Canada Revenue Agency announce that the inflation rate that will be used to index the 2020 tax brackets and amounts will be 1.9%
• Changing the Canada Pension Plan premium from 5.1% to 5.25%. These enhancements will increase the maximum CPP retirement benefit by about 50% for those who make enhanced contributions for 40 years, supporting Canadians as the cost of living increases.
• Decreasing Employment Insurance premiums from $1.62 to $1.58 per $100 of insurable earnings
• Continuing to index a more generous, tax-free Canada Child Benefit to the rate of inflation so that the benefit keeps up with the cost of living in Canada and successfully lifting hundreds of thousands of children out of poverty and helping middle class parents build a better future for their kids.

“Building on our very first action, after being re-elected, of lowering taxes, once again, for middle class Canadians, these tax changes are a part of our Liberal government’s continuous commitment to supporting Canadian businesses, and Canada’s middle class and those working hard to join it” said MP Sahota. -CINEWS

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