Path: utzoo!utgpu!jarvis.csri.toronto.edu!utai!ubc-cs!fornax!bby-bc!john
From: john@bby-bc.UUCP (john)
Newsgroups: can.general
Subject: Re: income tax tips #14: filing deadline, and education deduction
Message-ID: <278@bby-bc.UUCP>
Date: 15 Apr 88 20:14:37 GMT
References: <1988Apr12.150823.24450@lsuc.uucp> <274@bby-bc.UUCP> <1988Apr14.130750.12263@lsuc.uucp>
Distribution: can
Organization: Burnaby, British Columbia, Canada
Lines: 22
Summary: doesn't seem like much of an increase

In article <1988Apr14.130750.12263@lsuc.uucp>, dave@lsuc.uucp (David Sherman) writes:
> >but when will they ever raise the $50/month education deduction; it seems
> >as if it has been $50 for a couple of decades.....
> 
> It has.  Under Tax Reform, effective for the 1988 year it will
> be a $10 per month credit.  When combined with the provincial
> reduction in tax resulting from lower federal tax, this will make
> it worth about $15 (depending on the province) for each month in
> which you are a full-time student.  For low-income students, this
> is a fair bit better than a $50 deduction.

Perhaps I'm calculating something wrong but at the lowest federal tax
rate a student would be paying  %17 tax (federal) so a $10 tax decrease
means they have escaped paying tax on $10/0.17 or about $58.  $8 doesn't
seem like much of an increase over 20 years.  20 years ago $50 month might
buy a student a months groceries; today it will buy a weeks worth.

Am I somehow mistaken in my calculations?

john

 ...!ubc-vision!fornax!bby-bc!john