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Weight Loss Through Taxes

The HST is soon to be officially replaced with the old GST/PST model. For those of you cheering, here is a bit of sobering news:

2013 tax credits adjusted re return of PST:

personal amount $9,859
spousal amount $8,842
2013 tax credits if HST had carried on:

personal amount $11,524
spousal amount $10,113
Because the PST is not re-implemented until April 1, 2013, the full year tax credits will be blended rates to reflect the higher credit amount for the first 3 months of 2013 in which the HST applies, and the lower credit amount for the 9 months in 2013 in which the PST applies. The resulting blended rates are:

personal amount $10,276
spousal amount $8,860

So, what does this mean?
As a result, $168.81 more tax will be paid in 2013 by a couple where the spousal amount is fully utilized. A single person who is taxable will pay an additional $63.17 in tax for 2013. Combined with the increases in BC Medical and ICBC premiums, the government is certainly retaining their “pound of flesh”

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