Thursday, May 04, 2006

The Conservatives Learn Spin

I forgot what inspired me to write about the budget yesterday. An accountant friend of mine was poking fun at the surprise announcement of a $1000 Employment tax credit. The new budget allows employees to deduct $1000 from their taxable income for work related expenses. The wrinkle is that tax credits come off at the lowest marginal tax rate (15.5% after July 1) This means that the headline number $1000 really translates into an actual reduction in taxes of $155.

So the Conservatives are learning how to spin things a little. Good for them, now that they're in government they have no right to whine about media coverage, the government must work to influence it.

Either way, regardless of the headlines, the Employment tax credit lets me keep more of my money. I repeat, tax cuts are a good thing.

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