If you are an Ontario worker currently making minimum wage or an amount slightly above it, the Ontario government has decided you now qualify to be exempt from certain taxes starting the 2018-2019 year.
If you are wondering where this is coming from, the move was part of a promise Doug Ford and the Conservatives had made during his provincial campaign run. Ford claimed he would push for the elimination of provincial income tax for low-income workers. Now, that promise is thankfully being kept in response to the halt of raising the provincial minimum wage.
As a result, the tax changes are expected to affect up to 1.1 million workers in Ontario. Those who will qualify can expect to save in and around $850 a year, or $1,250 a year if you live in a household with two workers who qualify for the exemption.
If you are curious about the qualifications and whether you are eligible, right now it's been determined that Ontario workers who are making less than $30,000 and up to $38,000 will qualify for the income tax exemption.
While the news is great for struggling Ontarians, the plan is expected to cost the province a whopping $120 million after one year of being put into effect starting January 1st of 2019.
In an effort to balance the books, Doug Ford had mentioned the promise of eliminating the provincial income tax would go hand in hand with the elimination of the minimum wage hike that was previously set in motion by Kathleen Wynne.
While the Liberal and Conservative parties continue to argue with each other on which is better for low-income workers, it looks as though for now the tax cuts will be taking the stage. Whether it delivers a better result for Ontarians than a hiked minimum wage, which has now been capped to $14 until 2020, is up to Ontarians themselves.
Source: Global News