What a farce this budget is. Flaherty taking credit for increases that were already there and items that had been promised before. Lets look at the claim of increasing the Basic Exemption from $9,600 to $10,320 - NO! this credit has already been established at $10,100 for 2009 and is in all published tax tables for 2009 as a cost of living adjustment. What the budget does is increase it by an extra $220 or 2.2%
What about the increase in the upper limitstes for the 15% and 22% tax brackets up by 7.5%? NO!!!. these upper limits were already established through the "NORMAL" cost of living increase of 2.5% to be $38,832 and $77,664 anyway. The added benefit is about $2,000 on each rate and the tax savings will be a maximum of about $140 until you exceed the $77,000 amount, i.e., $2,000 * 7% (22%-15%). On a weekly basis, this amounts to about $2.69.
The Age Credit will amount to $150 for those with incomes up to $33,000. At that point the lovely CLAWBACK of Age credit kicks in and will wipe it out at the $70,000 level.
Nothing in the budget for RRSP / RRIF or Trusts other than the item related to the 25% reduction in 2008 RRIF amounts.
What an insult to a taxpayers intelligence!!!!
Wednesday, January 28, 2009