Quote:
Originally Posted by Resolute 14
Ok. Share the facts then. Show me the math and let me decide for myself.
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Let's use a person with an income of $50,000 as an example with one child. The increase to the UCCB is $720 annually. In Alberta, that person's effective rate is 18.7% - they're paying $9,350 in income tax.
At a rate of 18.7%, you keep $513.36 of the UCCB. The tax credit that is eliminated was worth $337.50.
Final net gain: $175.86
But also consider:
1. The doubling of the fitness expense limit to $1000 is worth $75.
2. If you spend enough in child care expenses ($5000 for a kid aged 7 to 16), that is worth $187.
So you're up at least $175.86, and maybe as much as $437.86, just on those changes.
As your marginal rate increases, the advantage of the UCCB over the old credit shrinks. No one has an effective rate of the full 39%, but if you did, you would be up $101.70 over the old system, not taking into account those other changes I noted above.