Get Out of Debt Now! This is the most important issue facing Canada and Canadians right now. Most developed countries in the world are increasing their spending and debt.  Most governments will not stop their excessive spending until they are forced to do so.  This happens because they cannot sell their debt (e.g., Canada Savings Bonds, Government of Canada bonds, provincial government bonds, crown corporation bonds, t-bills) without paying substantially higher interest rates .  Once they are required to pay higher interest rates they can no longer afford the interest on the debt.  Therefore, they will have to slash spending, raise taxes, or both. Western Europe, Japan, United States and Canada are in imminent danger of having to pay higher interest rates on their debt.  This will start a downward spiral of their economies, which will lead to a recession.  Some people think parts of these economies have been in a recession since 2008.  A recession is falling Gross Domestic Product (GDP) and higher unemployment.  Governments usually try to counteract this by increasing spending and lowering short term interest rates.  Unfortunately (or fortunately), the governments will not be able to increase spending because of the debt, and interest rates can't really go much lower.  Canada and the rest of the developed countries are going down the same road as Greece, Ireland, and Portugal.  See our article on Debt in Selected Countries. Recessions are a normal part of the business cycle, but if we go into a recession now because of sovereign debt, it may be long and nasty.  You can't really tell when a recession begins or ends until probably five years after it's over.  We entered a recession in 2008, but at this point we can't really tell if the recession ended in 2010, or if it is a double-dip recession that we are still in.   What can we do? The most important thing you can do is reduce your debt, especially debt on which the interest is not tax-deductible.  You can also lobby your governments (federal, provincial and local) to eliminate the deficit, reduce debt, and become better managers of your money.  You can do this by contacting your Member of Parliament (MP), provincial and local government representatives.  You could also sign petitions that are on the Canadian Taxpayers Federation website. For investors, we've added a recommended lower risk portfolio for more conservative investors.

How can TaxTips.ca help you? If you want to be retired at 50, read this! Our Free In 30! page will provide you with the plan we have used in our life.  We haven't always followed the plan, but we managed to retire at fifty after starting married life with nothing.  Okay, we're not retired anymore - this website is a full-time job! The resources on our site include the following financial planning and income tax planning tools: Canadian income tax information - tax laws and how they apply Income tax rates (marginal tax rate tables) for every province and territory Non-refundable personal tax credit tables for Canada, provinces and territories RRSPs and RRIFs - information and rules regarding contributions, holdings and withdrawals. Canadian income tax calculators, RRSP & RRIF calculators, mortgage and other calculators to help you determine how much tax you will pay,  how long your money will last, and how to cut your interest costs.  Our Canadian income tax calculators include employment income, dividend income and dividend tax credits, capital gains and other income, as well as most tax deductions and personal tax credits.  CPP and EI premiums are also calculated by our income tax calculators. information on investing in stocks, bonds etc., including the tax consequences of different investments Real estate information, including what happens if you rent out part of your home, build a new house for resale, or move into a home that you previously held as a rental property Resources for seniors Resources for persons with disabilities Sales tax information, including GST, HST and provincial retail sales taxes Business page which provides links to tax forms, information on setting up a business, rules re business expenses including automobiles, and automobile taxable benefits, corporate income tax rates, and much more

See our site map for a list of all the main web pages on our site.  To easily find any topic on our site, type your search term into the search box at the top of any page. We hope the information on our website will make you a better money manager, and help you become financially independent. Tax Tip:  Make your money work for you instead of you working for it, and get out of non-tax-deductible debt as quickly as possible.   Revised: May 16, 2012