The Globe and Mail reports in its Wednesday edition that the Liberal's new agenda of measures will affect your personal finances if you are a homebuyer, a parent, a senior or a high earner, particularly one who owns bank stocks. The Globe's Rob Carrick writes that to help pay for its considerable spending, the party said it would raise corporate taxes on banks and insurance companies that earn more than $1-billion a year, and introduce a temporary Canada Recovery Dividend paid by banks and insurers. The Globe says investors have been waiting for a return of bank dividend increases after a moratorium imposed by regulators early in the pandemic. These taxes could affect the amount of these increases and weigh on the price of bank stocks.
Two Liberal personal tax measures stand out, the first of them an anti-flipping tax on residential properties held for less than 12 months for reasons not related to personal reasons like pregnancy, death or a new job.
The party also said it would impose a minimum 15-per-cent tax on people in the top tax bracket. The Liberal election platform explains this move as removing the ability of high earners "to artificially pay no tax through excessive use of deductions and credits."
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