Answered step by step
Verified Expert Solution
Question
1 Approved Answer
part B and D thank you! part a) If the husbands income increases by $8,000, by how much does his PIT liability increase? Consider a
part B and D thank you!
part a) If the husbands income increases by $8,000, by how much does his PIT liability increase?
Consider a Canadian family of six - two adults and four children (all under 16). There are two wage earners in the family - the husband's income is $46,000 and the wife's income is $13,000. Also assume that only federal personal income taxes are paid (that is, ignore provincial taxes) and use 2019 brackets and rates. (b) If we consider the same income increase as in (a) but look at the payroll taxes - CPP and EI. Given that the employee's share of CPP is 5.1% and of El is 1.62%, by how much does his payroll tax liability increase? The individual income limit for CPP is $57,400 and for El is $53,100. Also calculate the changes in the CPP and El tax credits due to this payroll tax liability increase. Now consider the Canada Child Benefit (CCB). It is clawed back by 23% if the family income is between $30,450 and $65,976 and by 9.5% if the family income exceeds $65,976. By how much does the husband's tax liability increase due to the CCB clawback when his income increases by $8,000? Consider a Canadian family of six - two adults and four children (all under 16). There are two wage earners in the family - the husband's income is $46,000 and the wife's income is $13,000. Also assume that only federal personal income taxes are paid (that is, ignore provincial taxes) and use 2019 brackets and rates. (b) If we consider the same income increase as in (a) but look at the payroll taxes - CPP and EI. Given that the employee's share of CPP is 5.1% and of El is 1.62%, by how much does his payroll tax liability increase? The individual income limit for CPP is $57,400 and for El is $53,100. Also calculate the changes in the CPP and El tax credits due to this payroll tax liability increase. Now consider the Canada Child Benefit (CCB). It is clawed back by 23% if the family income is between $30,450 and $65,976 and by 9.5% if the family income exceeds $65,976. By how much does the husband's tax liability increase due to the CCB clawback when his income increases by $8,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started