Tax breaks for people on low incomes, higher prices for smokers

Daniel
Daniel MacEachern
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How much of the millions and billions bandied about will affect you? If you’re a senior or living on a low income, you’ll get a break. If you smoke, expect a lighter wallet.

• Smokers will pay more as of today. The government is increasing taxes on tobacco by three cents per cigarette — 60 cents per pack, $6 per carton — and six cents per gram of tobacco. The government estimates the tax increase will result in $17 million in new revenue.

• The province is increasing low-income thresholds for individuals and families. For individuals, the tax-reduction threshold — under which a person pays no provincial income tax — will be raised beginning this year from $17,547 to $18,547, with partial reductions for individuals with net incomes up to $22,815. A person with a net income of $20,000 will pay $231 less in taxes in 2014. People on low incomes will also see an increase to the cap for dental services, from $150 to $200 annually.

For families, the threshold has been raised from a net income of $29,362 to $31,362, with partial reductions for families with net incomes up to $38,006. A family with a household income of $32,000 will pay $463 less in taxes. The government estimates the cost of the changes at $4.5 million, bringing the program’s total annual cost to about $11.1 million.

• The government will continue its 35 per cent reduction for several seniors for several licences and fees, including driver’s licence fees, vehicle registration, and hunting and fishing licences, a program that costs an estimated $3.7 million. The province is also boosting the seniors’ benefit, from a maximum of $971 in 2013 to $1,036 in 2014.

 

dmaceachern@thetelegram.com

Twitter: @TelegramDaniel

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Recent comments

  • r fewer
    March 29, 2014 - 12:54

    There are many so called low income seniors who have hidden there worth in hundreds of thousands and reap all the financial benefits of government monies, our tax dollars.that is.afact and government should do an investigation.they would recoup millions of dollars of fraudulent money from the senior crooks. I am a senior and I know what they are doing

  • r fewer
    March 29, 2014 - 12:49

    There are many so called low income seniors who have hidden there worth in hundreds of thousands and reap all the financial benefits of government monies, our tax dollars.that is.afact and government should do an investigation.they would recoup millions of dollars of fraudulent money from the senior crooks. I am a senior and I know what they are doing

  • Tina Meyers
    March 29, 2014 - 07:02

    Even though I do NOT smoke I think it's absolutely disgusting how the Cigarette smokers of the 21 century have become the scapegoats for all the crooked politicians & all the health Nazis!

  • Working Poor
    March 29, 2014 - 06:57

    Time to do away with seniors discounts. While many seniors are living on a lower income than they had when they were working, many are sitting on two or three pensions and retirement savings. I know seniors with more cash in the bank than I, a working poor young person, will ever have and still avail of these senior discounts. Time to do away with these discounts. Either offer the same low price to everyone or offer a discount based on something meaningful like need instead of greed to all ages.