Remember when the federal Liberals axed the tax break for Canadians who take public transit? There may be more of that coming in the next federal budget, according to tax experts.
The government may be under pressure to find new revenue without raising taxes, and eliminating tax credits would be one way to do so, said Jamie Golombek, managing director of tax and estate planning with CIBC in Toronto.
Prime Minister Justin Trudeau’s pledge to peg the Canada Child Benefit (CCB) to inflation starting this year is one thing that may require Ottawa to find new sources of funding, said Lana Paton, managing partner of PwC Canada’s Tax Services.
Indexing the CCB to the cost of living will provide an additional $5.6 billion over a four-year period in support of families with children under 18 years of age, the government said. And that money will have to come from somewhere.
The Liberals have “already increased taxes dramatically on the top one per cent,” Golombek said. And their agenda is to reduce taxes on middle-income Canadians.
The government has also outlined a series of measures to tighten the tax rules for small business owners and professionals who operate as incorporated small businesses, such as lawyers and doctors.