Stocks to watch in Canada’s new, higher tax bracket
The federal government will begin taxing high-income earners at the same rates as everyone else in 2019.
It will also change the rules for the GST to allow people earning more than $75,000 to keep their income tax rates lower than those who make less than $100,000.
The change to the GST system is part of a package of changes to the tax system unveiled Tuesday that will begin taking effect on July 1, 2019.
The package is designed to boost the economy and cut red tape.
But the biggest change will be the $10.50 federal-provincial sales tax on income from the sale of recreational goods.
The new tax rate will be $8.20, up from $7.50.
The tax will also apply to the importation of recreational or sporting goods from other provinces.
The provinces of British Columbia and Saskatchewan will be responsible for the import duties on the goods they import.
The federal government announced the new tax last year and the new sales tax will begin to take effect in July 2019.
It’s a big change for the middle class.
While the new GST system will bring some benefits to low-income Canadians, it will also increase the burden on low- and middle-income people, especially the young.
The new sales-tax rate will apply to income from $250,000, which is the threshold for the new, $10-per-person federal tax bracket.
It’s currently set at $70,000 for people earning $75 or less and $70 for those earning $100.
But it will now be $7,250 for those who earn more than that and $10,750 for those making more than about $100 million.
The increase to the federal sales tax is part for an election promise that’s been repeatedly broken.
In 2017, Prime Minister Justin Trudeau promised to lower the rate to 15 per cent for all Canadians and to cut it further to 15.5 per cent if he wins a Liberal majority.
That promise was not realized, and the government increased the GST rate to 25 per cent.
The Liberals have since made a major push for a 15 per, 30 per, 40 per and 50 per cent tax bracket, but Trudeau has been criticized for not keeping his promise.
A lot of people are still upset about that.
It was a promise that was not kept.
So we’re going to try to make sure we make it better for everybody, said John Lantz, president of the Canadian Federation of Independent Business.