octobre 11 2012
The End of Tax Uncertainty in Quebec
Finance Minister Nicolas Marceau announced yesterday in a press conference that his government finally decided to abandon the tax increase on capital gains and dividends. However, the government has decided to create a new tax bracket of 25.75% on taxable income over $100,000. This will increase the tax rate of income between $100,000 and ± $130,000 from 45.71% to 47.46% and the tax rate on income over ± $130,000 from 48.22% to 49.97%. It should be noted that the government has waived the retroactive aspect of this measure and that it will only apply from 2013. Furthermore, Mr. Marceau also announced that his government abandoned the abolition of the $200-a-head “health tax". Although this tax is not abolished, it will be modified in 2013 in order to make it more progressive.
Indeed, it will be applied as mentioned below based on each taxpayer’s income:
The exemption threshold goes from $14,410 to $18,000;
Those earning between $18,000 and $20,000 will be required to pay between $1 and $99;
Those earning between $20,000 and $40,000 will be required to pay $100 (which is $100 less);
Those earning between $40,000 and $42,000 will be required to pay between $101 and $199 (which is between $1 and $99 less);
Those earning between $42,000 and $130,000 will be required to pay $200 (status quo);
Those earning between $130,000 and $150,000 will be required to pay between $201 and $999 (between $1 and $799 more);
Over $150,000, taxpayers will be required to pay $1,000 ($800 more).
This announcement from Mr. Marceau put an end to the "tax uncertainty" that existed in Quebec since September 4.