the Wealthy Canadian

It looks like the Canadian budget has passed with the support of the Liberals (not surprising, it did appear to be a Liberal budget) and with it the current government will get to keep their seats for a while longer.  Politics aside, how does this budget affect me?

First are tax cuts.  The basic personal amount has gone up to $10320 and the thresholds for the 15% and and 22% tax brackets are now $40,726 and $81,452.  Note that the basic personal amount was already scheduled to have gone up to $10,100 this year (from $9,600 in 2008).  Whatever, it’s still less taxes that I have pay this year, right?  Yup.  By my calculation someone earning $81,452 or more will save $391.  According to data from StatsCan http://www40.statcan.ca/l01/cst01/media01-eng.htm the average person earns 41839.2 (the median is probably lower as the income of Canadians does not follow a normal distribution) so the average Gordon will save about $284.  Yay.  Can you hear the excitement in my voice?  Well, at least taxes didn’t go up.

Payroll taxes – I mean “EI premiums” – are going to be frozen this year.  Usually they go up every year, so this year I won’t have to pay more towards Employment Insurance.

“Action to Stimulate Housing” – haven’t we just exited the longest and most pronounced housing boom in decades?  In any case the big news here is a temporary Home Renovation Tax Credit.  This credit is only good for 2009, for projects between $1000 and $10,000.  Remember that credits are for the lowest bracket, or 15%.  So this means a savings of up to $1350.  And it means that I bought my new windows a few months too soon.   There are a few catches to consider:
* the credit is for costs above the $1000 threshold.  So if you install carpet for $1001 your credit is (1001 – 1000) x 15% = 15 cents.
* this credit is only for improvements that are deemed to be “enduring in nature” i.e., not appliances nor maintenance.

There are many other initiatives that are aimed at helping Canadians as whole, like infrastructure, etc.  But these appear to me to be the only things that individuals can take advantage of.