Avoid a taxing time… plan ahead
The slower pace of late summer makes it an ideal time to think about your personal finances. Whether relaxing at the cottage, or on the patio at home, cast your mind back to the income tax you had to pay last April. And to other issues such as the low interest rates you’re getting on your savings; or how the federal government’s Seniors Benefit proposals may affect you in the future.
Don’t you think it’s time to protect yourself from the combined effects of powerful banks who pay only a pittance in interest on your savings, and cash-hungry governments that impose excessive taxes on your income — not to mention clawbacks on your pensions?
If you recall my last column, I had just finished my own tax return and resolved to make the ordeal less painful in future. I’m now in the process of looking at every conceivable, but legal way to avoid losing all my public benefits plus avoid playing right into the hands of the tax collectors. I’ve compiled the following 10 ideas which should be helpful:
- Limit taxable income to just under $30,000 a year if you can (some suggestions appear below). Up to that level, the combined federal and provincial income tax rate in most pvinces is in the range of 26 per cent to 29 per cent. Above that, it jumps to 40 to 45 per cent depending on the province, and above $60,000 the rate is a painful 50 per cent plus.