Q & A: Tax specialist explains what Quebec Budget 2023-2024 means for you
CTV News Montreal's Caroline Van Vlaardingen spoke to BDO Canada tax partner Ernie Furt about what Quebec's new budget means for taxpayers. You can watch the full interview above and read the full transcript below.
Caroline Van Vlaardingen: So, Ernie, the finance minister is calling it the most important tax cut in recent history of Quebec, or in the history of Quebec—4.6 million Quebecers will see tax cuts. Let's talk again about what it will represent for individuals and couples.
Ernie Furt: Well, let's take a look at different taxable income levels. If you're a single individual earning $40,000, it means $210 to you. If you're a couple earning $40,000, it means $56 to you. At the $100K level, if you're single, it means $814. And if you're a couple, it means $1,627. So, that's pretty good at the end of the day. And the good thing about it is, if you're a higher income earner, you're not clawed back this amount. So, this is a permanent cut. And as long as it remains there and people can earn what they earn, as Eric Girard said, they can benefit from this tax cut.
Quebec budget 2023 tax cuts
Caroline Van Vlaardingen: So often Quebecers say the more you earn, the more you pay. So, this is kind of nice that it does allow higher income earners, you know, those who earn more, to also benefit from a tax cut. There's something interesting about the QPP Quebec pension plan as well. Let's talk about that for a second. What's going on here?
Ernie Furt: Well, they are encouraging older workers to continue to work. So, currently, if you work and you're over the age of 65, and forever you are paying QPP on your earnings, on a salary or as a self-employed worker. However, starting in January 2024, if you reach the age of 72, you no longer have to pay any QPP on your earnings. That's a $4K amount that you're actually saving if you're earning about $63,100 a year or more. So that's an interesting cut. And if you're self-employed, you can double that. So, that's one thing that they're doing.
Another thing that they're doing is you now are going to be able to have the option to stop paying QPP at age 65, provided you're taking it. You currently do not have that option in Quebec. You do have that option in Canada, but you don't have that option in Quebec.
Now, the last QPP issue that they're doing is, currently, you can take your QPP and defer it up to age 70, where you're getting an increase of 0.5 per cent per month, i.e. a six per cent increase in your baseline QPP payments. So they're allowing you to defer this until age 72, and I didn't see it but it's probably there where this 0.5 per cent increase per month is still going to be there. So if you don't need the money, you don't have to take it, but you have to look at the time value of money and how old you're going to be when you're going to die, but nobody knows that.
Ernie Furt: Quebecers will always be inflamed with something. So, will it? It depends. You know what? Just go out there, do what you got to do, and work. I wish everybody has to pay more taxes next year, because that means you've earned more than the previous year.
LISTEN on CJAD 800 Radio: What are you getting from the Quebec budget?
CTVNews.ca Top Stories
A 'tragedy that can't be measured': North Bay's forever chemical problem is also the rest of Canada's
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
opinion How to use your credit card as a powerful wealth-building tool
Irresponsibly using a credit card can land you in financial trouble, but personal finance columnist Christopher Liew says when used properly, it can be a powerful wealth-building tool that can help grow your credit profile and create new opportunities.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Here's what 'the hinge' move is, how to do it correctly
When you're picking something up from the floor or bending over to tie your shoe laces, you're performing "the hinge move," according to movement trainers.
Dashcam video shows terrifying near-miss on two-lane northern Ontario highway
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
Trump heading to Jersey Shore to rally 'mega crowd' in weekend break from hush money trial
After a long week in court, Donald Trump is heading to the Jersey Shore. And his campaign says he'll be joined by "tens of thousands" of his friends.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Quebec woman buys lotto ticket from daughter's store, wins $1 million
A woman from Saguenay-Lac-Saint-Jean, Que. won $1 million in a Lotto 6/49 draw and she bought the ticket from her daughter's convenience store.