Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

The most awaited tax change for the broadest base of taxpayers is the legislation allowing the government to automatically compute the Canada Workers Benefit (CWB) for tax year 2019. This benefit will replace the current Working Income Tax Benefit. But, it requires designated educational institutions to report for each student whether they are studying on a full- or part-time basis so that their eligibility for the CWB can be determined.

Happy 2019! Welcome back to Knowledge Bureau Report and to what’s sure to be a fascinating year for interpreting tax and financial news, based on recent stock market volatility and significant tax change. It’s an election year, too, so broadly misunderstood tax reforms recently introduced will likely re-emerge for debate. What lies ahead for 2019? Here are just some of the facts Canadians should know.

Did you check your odometer reading at the start of the year? Finance Canada confirmed its 2019 auto expense rates on December 27, but they don’t quite measure up to cover the carbon taxes that increase the cost of driving, including the increased gas prices as of January 1. Those who use passenger vehicles for business will be disappointed that their write-offs haven’t changed at all, unless a new vehicle was purchased after November 20, 2018.

One controversial change o in the the November 21, 2018 economic statement was the proposal to provide taxpayers with a charitable donation credit for monetary gifts to non-profit journalism organizations. We asked tax and financial professionals their opinion on this hot topic: 78% of those who responded to Knowledge Bureau Report’s December poll voted to oppose this measure, hands down, even at a giving time of year.

Ruth Horst from Hamilton, Ontario specializes in personal income tax filing and, as the early-bird registration deadline for this year’s CE Summit personal income tax update draws near, she shares how these workshops have provided important benefits to her role.

A new book by Jenifer Bartman and Evelyn Jacks will be released next week by Knowledge Bureau. It addresses a common family secret that plagues millions of Canadians from coast to coast: what to do with the family business time bomb at a time when boomers are contemplating retirement.