96.3 FM Radio Spot on Wealth Creation
Few weeks ago Campbell announced a 15% personal income tax to take effect Jan. 1
Yesterday they announced, in all the bedlam, that the tax cut was off.
What does that mean to us in wealth creation?
Campbell said it will give B.C. the lowest provincial personal income tax in Canada, and business income taxes will also move to the lowest rates in North America. There is all sorts of research that suggests higher taxes ultimately reduce productivety and savings. They have done these studies in the past comparing tax rates across different countries and the corresponding effects on productivity and savings rates. I would argue that if this tax cut took effect it may help savings rates for those earning $72,000 or more. The tax cut will save $68 a year for someone with an income of $20,000, and up to $616 a year for those with an income of $72,000 or more.
Yesterday they announced, in all the bedlam, that the tax cut was off.
What does that mean to us in wealth creation?
Campbell said it will give B.C. the lowest provincial personal income tax in Canada, and business income taxes will also move to the lowest rates in North America. There is all sorts of research that suggests higher taxes ultimately reduce productivety and savings. They have done these studies in the past comparing tax rates across different countries and the corresponding effects on productivity and savings rates. I would argue that if this tax cut took effect it may help savings rates for those earning $72,000 or more. The tax cut will save $68 a year for someone with an income of $20,000, and up to $616 a year for those with an income of $72,000 or more.
posted by David Allard at
8:20 AM
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