Budget Coming down today

[Mr. Ski]

Originally Posted by fotze

Would this be for people who are regular employees or for people working for themself? i.e. consultants?

This is for regular guys & gals working for a paychek.

[FireFly]

Originally Posted by White Doors

I heard that it was confirmed that each Maritime province was passing the 1% reduction on through their HST. Oh, and firefly - the reason they combined them was because before there was a tax on a tax and it also makes for easier book keeping.

Mhmmm, and also so that no one province in the Maritimes had a tax advantage over the others, in regards to sales taxes.

[rubecube]

Yay! 0.5% increas for my tax bracket...Oh thank-you Mr. Harper!

*grumbles*

[FireFly]

Originally Posted by rubecube

Yay! 0.5% increas for my tax bracket...Oh thank-you Mr. Harper!

*grumbles*

You should just make more money then.

Seriously though, the GST cut and other credits should negate any increase in taxes you face.

[rubecube]

Originally Posted by FireFly

You should just make more money then.

Seriously though, the GST cut and other credits should negate any increase in taxes you face.

Not really, because now I don't get as much on my GST rebate.

[albertGQ]

Originally Posted by rubecube

Not really, because now I don't get as much on my GST rebate.

But you pay less GST as well

[rubecube]

Originally Posted by albertGQ

But you pay less GST as well

It's not like my tax bracket is out spending the amount of money where 1% really makes a difference, especially when my income tax increases and I'm losing 1% on my GST rebate.

The Conservatives have not done muh of anything to ease the burdens of people in my tax bracket e.g. students, etc.

[FireFly]

Originally Posted by rubecube

Not really, because now I don't get as much on my GST rebate.

Are you certain of that? Did they release the calculation for the GST rebate? Because I make too much money so I get nothing as a GST rebate.

And if you want to get technical, cutting the GST makes your cheque go further. People in lower income brackets should actually feel the impact more, as more of your income goes to GST (comparatively speaking). Damn economics courses, I can't quite remember how that works, but even the calculations in the articles proved it. At 30,000 you may only get $200 more, compared to $1600 at $50,000, but the dude at $150,000 only gets an extra $2000 because of GST.

Also, there are textbook credits, transit credits, and you can get a larger bursary without them taking taxes from it now... all benefits for the student.

[FireFly]

Besides, "The tax rate on the lowest tax bracket will go to 15.5 per cent on July 1, after the Liberals cut it from 16 per cent to 15 per cent in their fiscal update in November."

http://www.cbc.ca/story/canada/natio...in-060502.html

So you've only had a lower rate for 6 months. Did you even notice?

[rubecube]

Originally Posted by FireFly

Are you certain of that? Did they release the calculation for the GST rebate? Because I make too much money so I get nothing as a GST rebate.

And if you want to get technical, cutting the GST makes your cheque go further. People in lower income brackets should actually feel the impact more, as more of your income goes to GST (comparatively speaking). Damn economics courses, I can't quite remember how that works, but even the calculations in the articles proved it. At 30,000 you may only get $200 more, compared to $1600 at $50,000, but the dude at $150,000 only gets an extra $2000 because of GST.

Also, there are textbook credits, transit credits, and you can get a larger bursary without them taking taxes from it now... all benefits for the student.

Wow, now my head is spinning.

I think the bottom line is:

I need a better job.

EDIT: Actually I need to read the article before commenting furher on it.

[Bring_Back_Shantz]

Originally Posted by FireFly

Are you certain of that? Did they release the calculation for the GST rebate? Because I make too much money so I get nothing as a GST rebate.

And if you want to get technical, cutting the GST makes your cheque go further. People in lower income brackets should actually feel the impact more, as more of your income goes to GST (comparatively speaking). Damn economics courses, I can't quite remember how that works, but even the calculations in the articles proved it. At 30,000 you may only get $200 more, compared to $1600 at $50,000, but the dude at $150,000 only gets an extra $2000 because of GST.

Also, there are textbook credits, transit credits, and you can get a larger bursary without them taking taxes from it now... all benefits for the student.

Wait, that doesn't make a lot of sense. Seems to me the guy making more is getting more back than the guy making less.

$200/$30000 = .67%
$1600/50000 = 3.2%
$2000/150000 = 1.3%

Where'd you get these numbers because they're kind of all over the place and I'm not sure what it is you're trying to say.

[FireFly]

Originally Posted by Bring_Back_Shantz

Wait, that doesn't make a lot of sense. Seems to me the guy making more is getting more back than the guy making less.

$200/$30000 = .67%
$1600/50000 = 3.2%
$2000/150000 = 1.3%

Where'd you get these numbers because they're kind of all over the place and I'm not sure what it is you're trying to say.

I got those numbers from some article yesterday. It has to do with the amount a person (or family) will spend on articles that have GST. The person making $30,000 spends less on GST as they buy food (which doesn't have GST unless it's junk) and shelter (probably rent which also doesn't have GST). The middle classer gets the biggest bonus because they have a longer term mortgage and whatnot than the upper income guy, and since there's tax on a house, and that tax then has interest charged on it over a longer period of time.

The point is that people think this is a tax that will most benefit the rich as they spend the most on GST, (makes sense, they have the most to spend). However, that's actually not true because they will pay off their big ticket items more quickly than the lower classes and therefore not pay as much interest on the purchase price. The lowest class can't actually afford to buy much that has GST charged on it.

It's like King Ralph said: (and I paraphrase,) "the big wig at the private club is telling me how I should take that $400 and invest in something but the towel boy is telling me how awesome it was." That $200 means more to the guy only earning $30,000 than $2000 means to the guy making $150,000.

[rubecube]

Originally Posted by FireFly

I got those numbers from some article yesterday. It has to do with the amount a person (or family) will spend on articles that have GST. The person making $30,000 spends less on GST as they buy food (which doesn't have GST unless it's junk) and shelter (probably rent which also doesn't have GST). The middle classer gets the biggest bonus because they have a longer term mortgage and whatnot than the upper income guy, and since there's tax on a house, and that tax then has interest charged on it over a longer period of time.

The point is that people think this is a tax that will most benefit the rich as they spend the most on GST, (makes sense, they have the most to spend). However, that's actually not true because they will pay off their big ticket items more quickly than the lower classes and therefore not pay as much interest on the purchase price. The lowest class can't actually afford to buy much that has GST charged on it.

It's like King Ralph said: (and I paraphrase,) "the big wig at the private club is telling me how I should take that $400 and invest in something but the towel boy is telling me how awesome it was." That $200 means more to the guy only earning $30,000 than $2000 means to the guy making $150,000.

Either way, you can't say that I'm benefitting from a %1 GST decrease. It evens out with my income tax increase and less of a GST rebate. That being said, I was ma enough about my income tax before it increased 0.5%. I realize half of percent is not a whole lot, but I'm broke and every little bit helps.

[FireFly]

Originally Posted by rubecube

Either way, you can't say that I'm benefitting from a %1 GST decrease. It evens out with my income tax increase and less of a GST rebate. That being said, I was ma enough about my income tax before it increased 0.5%. I realize half of percent is not a whole lot, but I'm broke and every little bit helps.

Did you read the part about you only having a lower tax rate for a whopping 6 months? Can you honestly say you actually felt that difference? Think back to last year at this time and it's actually a .5% savings.

And again, I'm not sure you'll get less of a rebate. I make too much money and so I don't get one at all?!? I didn't read anything about rebates, and it won't affect your rebate for a whole year, (if at all) so why are you so upset now? Your upcoming rebates are all based on last year's tax return.

Also, you aren't mentioning all the other tax credits you'll get. Sounds to me you just want something to complain about, without knowing all the details. (An extra $65/month for books? That's not more than your GST rebate?)

[photon]

Originally Posted by FireFly

Also, you aren't mentioning all the other tax credits you'll get. Sounds to me you just want something to complain about, without knowing all the details.

That never happens around here!

[rubecube]

Originally Posted by FireFly

Did you read the part about you only having a lower tax rate for a whopping 6 months? Can you honestly say you actually felt that difference? Think back to last year at this time and it's actually a .5% savings.

LOL, yeah I'm 19 and before December I wasn't at a job where income tax was an issue.

Originally Posted by Firefly

And again, I'm not sure you'll get less of a rebate. I make too much money and so I don't get one at all?!? I didn't read anything about rebates, and it won't affect your rebate for a whole year, (if at all) so why are you so upset now? Your upcoming rebates are all based on last year's tax return.

Also, you aren't mentioning all the other tax credits you'll get. Sounds to me you just want something to complain about, without knowing all the details. (An extra $65/month for books? That's not more than your GST rebate?)

I don't go to school right now...but that sounds pretty good.

Maybe I am overreacting. I'll give it until next January to really start complaining.

EDIT: With all that being said I still like the new budget. I just don't buy all the hype surrounding the GST.

[Bring_Back_Shantz]

Originally Posted by FireFly

I got those numbers from some article yesterday. It has to do with the amount a person (or family) will spend on articles that have GST. The person making $30,000 spends less on GST as they buy food (which doesn't have GST unless it's junk) and shelter (probably rent which also doesn't have GST). The middle classer gets the biggest bonus because they have a longer term mortgage and whatnot than the upper income guy, and since there's tax on a house, and that tax then has interest charged on it over a longer period of time.

The point is that people think this is a tax that will most benefit the rich as they spend the most on GST, (makes sense, they have the most to spend). However, that's actually not true because they will pay off their big ticket items more quickly than the lower classes and therefore not pay as much interest on the purchase price. The lowest class can't actually afford to buy much that has GST charged on it.

It's like King Ralph said: (and I paraphrase,) "the big wig at the private club is telling me how I should take that $400 and invest in something but the towel boy is telling me how awesome it was." That $200 means more to the guy only earning $30,000 than $2000 means to the guy making $150,000.

Okay, I'm not saying I disagree but your numbers don't add up. I think the point you're trying to make is that the 1% GST decrease constitues a larger percentage of the lower income person's income than the rich dude, but the numbers you put up don't support that.
Seems to me the guy making $150k per year is seeing twice the benefit of the guy making $30k.

Sure $200 may be a big deal to the guy making 30k and the rich dude may not care about the extra $2000 but on a percentage of income basis, the guy making $150 is getting double what the 30k guy is. It's pretty tough to justify that kind of disparity with "It means more to the lower income guy". If it means so little to the rich guy then why aren't they putting it all to the lower income guy?

It doesn't really matter to me either way, but it seems you either have your point, or your numbers mixed up.

[ken0042]

Originally Posted by rubecube

I just don't buy all the hype surrounding the GST.

Well, I suppose your age explains that. (Not saying that as a slam or anything.)

In 1993 the Liberals said that if elected they would eliminate the GST. They got into power, and they changed their minds. Why? Because that was a huge chunk of money to cut out all at once.

Then 12 years later the CPC said they would reduce it to 6%, and plan on reducing it to 5% within a couple of years. With a gradual decrease the gov't has a chance to alter the tax structure. And they are so far sticking by that promise.

The other thing about the GST; with federal tax I mostly forget about it. I never look at my gross pay; I see my net pay after deductions and say to myself that is what I get every 2 weeks. With GST, I am reminded and forced to calculate it each time I pay it.

You are also too young to recall there not being GST; at least significantly. I grew up in Winnipeg; and was used to paying 7% tax. I would come to Alberta, and see something for $499, and be able to plop down 5- $100 bills and get change still; not have the cashier tell me I was $34 short still.

[Bring_Back_Shantz]

Originally Posted by FireFly

Also, you aren't mentioning all the other tax credits you'll get. Sounds to me you just want something to complain about, without knowing all the details. (An extra $65/month for books? That's not more than your GST rebate?)

Yeah, but it's not like they get $65/mont cash. They get $65/month tax credit, so for an 8 month/year student it reduces their taxable income by $520. If the lowest tax bracket is 15.5% then that only translates to an increase of $80.60.

Probably more than the GST rebate difference, but still not a huge ammount of cash.

[rubecube]

Originally Posted by ken0042

Well, I suppose your age explains that. (Not saying that as a slam or anything.)

In 1993 the Liberals said that if elected they would eliminate the GST. They got into power, and they changed their minds. Why? Because that was a huge chunk of money to cut out all at once.

Then 12 years later the CPC said they would reduce it to 6%, and plan on reducing it to 5% within a couple of years. With a gradual decrease the gov't has a chance to alter the tax structure. And they are so far sticking by that promise.

The other thing about the GST; with federal tax I mostly forget about it. I never look at my net pay; I see my gross pay after deductions and say to myself that is what I get every 2 weeks. With GST, I am reminded and forced to calculate it each time I pay it.

You are also too young to recall there not being GST; at least significantly. I grew up in Winnipeg; and was used to paying 7% tax. I would come to Alberta, and see something for $499, and be able to plop down 5- $100 bills and get change still; not have the cashier tell me I was $34 short still.

I know. All I'm saying is that I'd rather see it taken off my income tax.