Alberta announced their tax credit improvement September 12, which E&Y have analyzed to mean:
Investors | Taxable Income | Marginal Rate on Interest | Marginal Rate on Dividends | Equivalency Factor |
Widows & Orphans | $30,000 | 25.25% | 3.63% | 1.29 |
Professionals | $75,000 | 36.00% | 13.83% | 1.35 |
Plutocrats | $150,000 | 39.00% | 18.18% | 1.34 |
Hah! The equivalency factors aren’t as good as for BC and Ontario! It almost eases the sting of realizing just how low taxes are out West!
[…] It is interesting to note that the equivalency factors have increased slightly since my 2006 post on this topic. […]