As part of the worldwide trend of taxing higher income earners, the federal government has introduced a new tax bracket for income earned over $200,000. Income above this amount will be taxed federally at 33%. Previously, the highest federal tax bracket had started at approximately $140,000, and was taxed at 29%.
A middle class tax reduction was introduced for 2016. It has been called a middle class tax cut because it is supposed to primarily benefit the families of middle class Canadians.
This federal tax reduction affects income earned within the second tax bracket, which in 2016, is between $45,282 and $90,563.
Within this bracket, the federal tax rate will drop from 22% to 20.5%.
Not all income within this bracket will be taxed at the same rate in British Columbia. This is because provincial brackets are significantly different than those of their federal counterparts. Within this federal bracket, there are three tiers of taxes in British Columbia.
For income from $45,282 to $76,421, the total tax rate will be 28.2%. On income earned between $76,421 and $87,741, the rate increases to 31.0%.
Finally, income between $87,741 and $90,563 will be taxed at 32.79%. The maximum tax savings from this measure will be $679 per person.
Note *all* of our former .khgcga.com email addresses are now .kempharvey.com.
In moving from CGAs to CPAs we are being proactive with updating our domain.
So we are know www.kempharvey.com and all our email addresses end with @kempharvey.com but we are still the same fabulous people and the same great service.
And don’t worry: if you keep us with @khgcga.com we’ll still get your email. Either way, we are here for you!
Tom moved to Penticton in 1972 with his wife Carol and their 2 children, Brenda and Andrea. He opened an accounting practice on his own and then later partnered with his friend and colleague Bob Harvey where they formed Kemp Harvey and Co., CGA’s, which still operates today. There are now 7 Kemp Harvey offices throughout the province, something that Tom was extremely proud of. Tom partially retired in 1999, and the Penticton office he helped create, is now operated by his daughter Andrea and her business partner Nicole Thompson. Throughout his life, Tom was an active Member of the CGA Association of BC and in 1989 he was President. He was also a member of the CGA Board of Canada.
From the beginning, Tom was active member in the community. He was a member of the Peach Festival Society, Kiwanis, Ironman Canada, VFCU, Penticton Yacht Club, and several other boards.
Tom is survived by his loving partner Liz Bingham, daughters Brenda (Robyn), Andrea (Rick), former spouse and long-time friend Carol Kemp, and brother Albert (Barb). Tom loved to dance and was an outgoing man; always the life of the party.
Further information can be found in the printed obituary. Our thoughts are with Tom’s family during this time.
In lieu of flowers, donations may be made to the SPCA or the Penticton Red Cross HELP Program.
The Kemp Harvey Group was well represented at the recent CPA Fall Leadership conference in Victoria. There was an excellent tax update and lots of information on the CPA merger. There was a Mardi Gras night of fun on Friday night and Saturday was the awards dinner. It was so nice to see all the hard workers honoured and we look forward to the pictures that will post soon, but for now, here are a few.
Greatly looking forward to next year!