Trudeau is nickel-and-diming Canadians to death

Trudeau can’t control his spending, and he’s finding lots of ways to make you pay for it

Justin Trudeau just made your life more expensive. And he couldn’t care less.

Picture this: You’re one of the almost two million Canadians who claim the Public Transit Tax Credit on your taxes every year – the majority of whom make less than $50,000 per year.

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  • marty_p

    And in “PM further pandering to Mo’s” news – I am happy to announce Malala Yousef is to receive her honourary CDN citizenship and to address Parliament on April 12.
    http://www.pm.gc.ca/eng/news/2017/04/03/prime-minister-announces-malala-yousafzai-will-visit-canada-receive-honorary
    Proverbial $64 question – does that mean she can sponsor a few relatives for Canadian citizenship?” Is the welfare cheque printer warmed up?

  • Jaedo Drax

    To be honest, this tax credit should be eliminated as it’s a Pigouvian subsidy for preferred behavior.

    If the PCs had any sense, it would be better to agitate for a much simpler tax code. Including a 150% tax on any profits to any company that is given a government loan/subsidy/bailout, until it is fully repaid.

    • dance…dancetotheradio

      Your point about subsidizing preferred behaviour is a good one.
      Public transit is a complex issue.
      Consider also that it is already heavily subsidized by provincial and municipal governments. (Phase one of Winnipeg’s rapid transit is about four km long and cost 138 million dollars with virtually no effect on trip times. Phase two will cost 408 million dollars to build another eight km.)
      So why should the federal government be involved in further subsidies?
      There’s so many other things to consider, like if they want everyone to take the bus then why isn’t it free?
      Or, why should it be subsidized at all?
      Why shouldn’t riders pay the full cost?

      • Exile1981

        In a way the its not subsidized. The tax credit just meant you could deduct $500 of the cost of passes from you income. So in effect they allowed you to use pre tax money versus post tax money to pay for your passes.

        • dance…dancetotheradio

          Kinda like a transit RRSP?

          • Exile1981

            More like how you can pay medical expenses with pre tax cash.

          • dance…dancetotheradio

            I have that option at work and I don’t use it because the extra vacation time is worth more to me given my location.
            And, it’s hard to put that money in there because then you have to use it.
            I’ve had medical savings account money burn up unspent before when I could have used it for leisure.

          • Exile1981

            Sorry maybe I wasn’t clear.
            If you have medical expenses more than 4% (I forget the actual %) of your pre-tax income then you can deduct the medical costs from your pre-tax income. It’s different than a medical savings account. It saved my bacon a decade ago when I was hit by a drunk driver who had no insurance. All my medical costs, plus mileage to go to treatment was deductible since it was well over 4% that year of my income (I also had to take a lot of time off after the surgery).
            I have no idea if that is still in the tax code anymore since I have an actual plan these days.

          • dance…dancetotheradio

            I need to know more about this.

          • Exile1981
          • dance…dancetotheradio

            Thanks.

          • Frances

            Actually, it’s 3% of your line 236 income (net income) up to a maximum of $2,237 for 2016. For every dollar above that, you get a non-refundable credit of (Alberta figures) 25 cents back on every dollar you spend. And the allowable medical expenses cover a very wide range – from wigs for cancer patients to visual aids to the legally blind (as in don’t have much vision, but – with the help of technology such as a mini-cam and a really large screen – actually make out words on a card or letter).

            Exile – you might want to take a second look. If you are paying for your plan, then that cost is an allowable medical expense. And if you add in your out-of-pocket expenses which the plan doesn’t cover, you may well be entitled to a break.

          • Exile1981

            It used to be you had to spend over 4%. I will look back into it.

        • WalterBannon

          It is complete bull that discriminates

          the CRA does not allow people to deduct the cost of getting to work, except now it does in this case if your take the bus, which means the CRA is now discriminating against people who drive their cars, take bikes or walk to work who should also be allowed to deduct the costs related to their modes of transport to work. It is a charter rights violation.

          • Exile1981

            I agree. I’ve argued this same thing with CRA

          • WalterBannon

            what was their response? did they have an answer?

          • Exile1981

            If your an employee of a company than the amount you drive to your office is NOT deductible.
            BUT if your employer requires you too use your own vehicle to then drive from their office to another site AND you have a log of the mileage you drove AND a sign in sheet at the employers office showing you left to the work site from their office each day and returned there at the end of the day AND you have a “legitimate” reason for doing that AND you didn’t receive mileage from said employer… then you can claim it off your pre-tax income BUT you will be audited… multiple times and they won’t use lubricant and will try every trick to make you have to pay tax on that deduction.

            If your very patient and threaten a lawsuit and have audio recording of the CRA staff telling you they have no intention of allowing you to have the deduction your entitled to because you work in the oil patch “raping mother earth”, you will after 6 years be allowed to keep the deduction you were entitled too… but a good portion of it will have been eaten up by legal fees.

          • dance…dancetotheradio

            Don’t ever argue with the CRA.

          • Exile1981

            It’s fun. You need to request in writing from them the names of the people in their organization that are ‘subject mater experts’ on a specific topic (ie vehicle deductions). Then get in writing from that individual a ruling that they way your doing the deduction is correct, then when an auditor rules against you… you go to the supervisor and point out the auditor is not a subject mater expert by their own internal descriptions and that the auditor made a ruling without consulting with an actual expert… which you have in writing in advance.

            They hate that.

          • dance…dancetotheradio

            Just sounds like Monty Python’s skit about the Spanish Inquisition with real world consequences.

          • Frances

            Know someone who works in the tax department of his company. Heard serious swears from head of department and inquired why. Seems said head had just gotten off the phone from CRA where was inquiring why a particular deduction was disallowed. Apparently the conversation went as follows: head of department “please give me the ITA chapter and verse” CRA agent “yada, yada, yada”, repeat several times. Finally the CRA agent had to admit that could not understand the Income Tax Act, and was quoting from an “interpretation” had been advised to read to anyone who dared question the CRA ruling. Needless to say, the swear jar at that particular company was topped up after that particular conversation.

            PS They went higher, and the ruling was in the client’s favour. Problem is, the client had to pay for the time spent by this firm: just wish one could sue CRA for incompetence and recover some of those costs.

            Should CRA have to recompense taxpayers for their costs when there has been an egregious lack of timely (let alone proper) procedures, I rather suspect CRA would be more circumspect in their targeting. Alas, I think the peons would still be considered “low hanging fruit”.

          • dance…dancetotheradio

            I agree with you that in the summertime in Winnipeg I could ride my bike fifteen km to work faster than taking the bus.
            But the car dealers have their own lobby group.
            Why do you have to get your car safetied to their standards?
            They just want your five hundred dollar car off the road so they can sell you another one.

        • dance…dancetotheradio

          At work, it was a taxable benefit.

          • Exile1981

            Mileage you get reimbursed for is a taxable benefit, you can write it off if you are not reimbursed, or you can use the same method to reduce the tax burden on the reimbursement.

            There is a reason I hire a tax professional that deals with people like me because the rules are complex and weird. One year I drove over 80,000 KM of work mileage on a personal truck.

          • Frances

            If it’s a “reasonable” mileage allowance based on the actual kms travelled for work purposes, it’s NOT a taxable benefit – just money in your pocket. However, if it’s on your T4 or is considered “unreasonable” AND you have a properly filled out T2200, then you claim said allowance as income and write off your vehicle expenses. You have to report all your vehicle expenses for the year, and then get to claim the percentage of them related to work (work kms vs total kms), and that includes depreciation on the vehicle.

          • Exile1981

            Every auditor had a different definition of reasonable.

          • Frances

            Generally speaking, “reasonable” is no more than $0.54 per km for the first 5000 km in a calendar year and $0.48 per km for the remaining km in the calendar year. Rates that CRA considers are not reasonable because they are either too high or too low are a taxable benefit and must be included in the employee’s income.

  • Catti

    Unsurprisingly, within the past week I’ve been bombarded with demands by both federal and provincial Liberal drunken sailor parties looking for my money. Every day, emails, letters, and phone calls. And did I mention I’m disabled and on a fixed income? Which means I’ve been shafted every way and sideways by these jackanapes. Today I threatened both ends of the horse’s ass with legal action if they don’t cease and desist their intrusive panhandling.

  • Tooth&Claw

    This shows Trudeau is only interested in ‘green’ posturing. What a donkey.

  • Gary

    Surprise surprise, I just got a Community news flyer from the Liberal MP . It informs me that we have an islamophobia crisis in Canada and that the January attack on a Mosque was an attack on all of us and Canada’s values.

    Hmmmm, so Justin now embraces the idea that Canada has an Identity for Values??? But at the same time he want to exalt muslims as a protect group with special rights even when Wife-beating, murdering gays and pedophilia is NOT canada’s values to embrace … but 99% of the population rejects islam and the quran that has hatred from cover to cover.
    Now let’s talk about the Mosque shooting that hasn’t gone though the Court but Muslims have the alleged shooter guilty which is so common in islam hell-hole where muslims just kill the person on rumours.

    Remember Justin talking about how a Canadian is a Canadian is a Canadian? Well the muslims at the Quebec mosque didn’t get the memo because at the service which Justin attended had the Algerian and Tunisian Flags draped over the caskets . https://www.youtube.com/watch?v=mIXdWt4cXbE

    Here’s the report by Ezra Levant where Justin ordered the CBC to delete their story that the Muslims told the Police they saw 2 Arabic speaking person in Black barged in to star shooting and praised god in arabic.

    https://www.youtube.com/watch?v=Q8Ye2iHVUAc
    https://uploads.disquscdn.com/images/3d990c6819109e17446a308da83faad95a8342444d9d56c10c507bcb43aa2380.jpg

  • Canadians voted for it and will do so again.

    This is why when some whiner complains that she cannot pay her hydro bill, tell her to get stuffed. She wanted it this way.