And change we will get. With the Liberals in power, there’ll be changes to the country’s economy and your personal finances.
Besides having a Prime Minister the rest of the world seems smitten by, here are some ways the new government will affect you:
- TFSA limit: The Liberals will likely change the annual contribution limit back to $5,500.
- Tax cuts and increases: Prime Minister-designate Justin Trudeau has pledged to give greater tax cuts to the middle class (those earning $44,700 to $89,401) and increase income taxes on higher earners (those earning over $200,000).
- Family affairs: The Liberals will get rid of the Family Tax Cut and replace it with the Universal Child Care Benefit that provides about an extra $2,500 per year for a typical family of four.
- Students: Grads won’t have to start paying back their student loans until they’re earning at least $25,000 per year.
- Seniors: The age of eligibility for Old Age Security will not be raised. The Liberals have also talked about increasing Canada Pension Plan benefits.
- Small business: The Liberals promised to reduce the small business tax rate from 11 per cent to nine per cent and to improve access to skilled labour. However, president of the Canadian Federation for Independent Business, Dan Kelly, has expressed concerns that payroll taxes will be raised in order to find increases to CPP.
- The economy: If the Liberals legalize recreational marijuana, the industry could turn into a $5-billion market. The infrastructure building sector will also see growth, as Trudeau pledged to spend $60 billion to update Canada’s roads, bridges, and railways.