High income earners face higher taxes, lower child benefits under Liberals

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OTTAWA — Canada’s highest income earners face the prospect of higher taxes under a new Liberal government, but those in the middle can expect a break.

The Liberals have promised to cut the middle income tax bracket to 20.5 per cent from 22 per cent.

However, to help pay for the cut, the party has promised to create a new tax bracket of 33 per cent for those earning more than $200,000.

High-income earners can also expect to receive less from the government under the Liberals’ plan to eliminate the universal child-care benefit and replace it with a new Canada child benefit that reduces the amount families receive as household income rises.

The party has also promised to eliminate the Conservatives’ controversial income-splitting plan for families and to roll back this year’s increase in the tax-free savings account contribution limit from $5,500 to $10,000.

The Liberals are also expected to restore the eligibility age for old age security and guaranteed income supplement to 65. The Conservatives had introduced a plan to raise it gradually to 67.