
People with disabilities concerned proposed Liberal bill will increase federal taxes
HALIFAX — Advocacy groups are asking the federal Liberal government to adjust its proposed tax bill to ensure people with disabilities don’t end up paying more to the Canada Revenue Agency.
Inclusion Canada says it favours Ottawa lowering the lowest marginal tax rate from 15 to 14 per cent, as proposed in the bill that passed first reading earlier this month.
However, the group says the unintended result of the change is that tax credits for people with disabilities will decrease in many cases.
That’s because the credit — used to reduce taxes payable — is generated by a formula that is tied to the marginal tax rate, and by dropping that rate to 14 per cent, the credit shrinks.