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Tag: taxes

  • Federal Troop Deployments to US Cities Cost Taxpayers $496M and Counting

    President Donald Trump has justified sending National Guard troops into U.S. cities as part of an effort to combat crime and support local law enforcement. Critics of the move argue the deployments undermine state and local authority and exceed the president’s authority under the Constitution.

    The CBO published the new data estimating the costs associated with the federal deployments of National Guard and active-duty Marines after a request from Sen. Jeff Merkley, D-Ore., who is the ranking member on the Senate Budget Committee.

    “The American people deserve to know how many hundreds of millions of their hard-earned dollars have been and are being wasted on Trump’s reckless and haphazard deployment of National Guard troops to Portland and cities across the country,” Merkley said in a statement about the CBO report.

    Factored into the estimates are troop deployments to Chicago, Memphis, Portland, as well as Los Angeles in June, when protesters took to the streets in response to a blitz of immigration arrests. The CBO said continued deployments to those cities would cost about $93 million per month.

    The estimate excludes the military’s December deployment to New Orleans.

    For further possible deployments down the road, the CBO estimates deploying 1,000 National Guard personnel to a U.S. city in 2026 would cost $18 million to $21 million per month, depending on the local cost of living.

    National Guard troops are expected to remain deployed in Washington throughout 2026, according to a memo reviewed by The Associated Press earlier this month.

    The troop deployments have provoked legal challenges from local leaders, and some have been successful. A California federal judge in January ruled that the Trump administration “willfully” broke federal law by sending National Guard units to the Los Angeles area.

    A White House representative did not provide an immediate comment on the estimates.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • The real reason you pay for NFL stadiums

    This week, guest host Eric Boehm is joined by J.C. Bradbury, an economist at Kennesaw State University and one of the leading critics of taxpayer-funded sports stadiums. Bradbury is the author of a forthcoming book, This One Will be Different, on the “false promises and fiscal realities” of stadium subsidies.

    Boehm and Bradbury discuss why stadiums rarely deliver on the economic benefits touted by team owners and local politicians, and how public officials, media outlets, and hired consultants help create the illusion that these projects pay for themselves. Bradbury explains why these deals often amount to a reallocation of existing local spending rather than genuine economic growth, and why taxpayers end up footing the bill for facilities that primarily benefit private sports franchises.

    The conversation also touches on the Super Bowl, the Olympics, and the surge of new stadium proposals across the country. Bradbury makes the case that America is on the verge of another stadium building boom, driven by political incentives and public enthusiasm rather than sound economics, and argues that cities would be better stewards of tax dollars if they resisted the pressure to subsidize major sports projects.

    The Reason Interview With Nick Gillespie goes deep with the artists, entrepreneurs, and scholars who are making the world a more libertarian—or at least a more interesting—place by championing free minds and free markets.

    0:00—Introduction

    0:56—Loving sports without loving subsidies

    6:01—Marketing taxpayer-funded stadium projects

    16:15—Civic pride and measuring ROI

    21:20—What makes sports stadiums unique?

    24:18—The upcoming stadium building boom

    35:01—Truist Park development

    43:03—Examples of fiscal restraint

    46:04—The Super Bowl and Olympic Games

    51:18—Bradbury’s career trajectory

     

    Eric Boehm

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  • Letters: One-time wealth tax won’t provide a long-term fix

    Submit your letter to the editor via this form. Read more Letters to the Editor.

    One-time tax won’t provide long-term fix

    Re: “High-stakes wealth tax proposal roils uber rich” (Page A1, Jan. 25).

    The proposed Billionaire Tax Act, imposing a one-time 5% tax on the total wealth of Californians whose net worth is $1 billion or more, needs reconsideration.

    Letters To The Editor

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  • How does rent from a family member or common-law partner get taxed? – MoneySense

    Rental income

    When you earn rental income, you report it on your personal tax return on Form T776 Statement of Real Estate Rentals. You can claim rental expenses to reduce your taxable rental income. Common expenses include:

    • Advertising
    • Insurance
    • Mortgage interest
    • Legal and accounting fees
    • Management fees
    • Condo fees
    • Repairs and maintenance
    • Property taxes
    • Utilities

    This list is not exhaustive, and repairs and maintenance can be complicated because some expenses that are more lasting in nature—like a renovation—may be capital expenses that must be depreciated over time.

    Rental losses

    If you have more expenses than income, you can have a rental loss. A net rental loss can be deducted from your other sources of income. This can result in tax savings. 

    If you have consistent rental losses, especially if the losses result from charging a low rent, the Canada Revenue Agency (CRA) may start asking questions. 

    Renting below fair market value

    If you are charging below market rent because you have a long-time tenant and provincial guidelines limit rent increases, that may be an exception. But if the rent is low because you have a non-arm’s length individual like a family member you are giving a good deal, this may negate your ability to claim rental losses. 

    Income Tax Guide for Canadians

    Deadlines, tax tips and more

    “In certain cases, you may ask your son or daughter, or anyone else living with you, to pay a small amount for the upkeep of your house or to cover the cost of groceries,” according to the CRA. “You do not report this amount in your income, and you cannot claim rental expenses. This is a cost-sharing arrangement, so you cannot claim a rental loss.”

    This seems to be the case with your clients, Hans, so I would say the “rent” is not taxable rental income, at least in the eyes of the CRA. 

    Common-law status

    You mention a three-year time horizon for common-law status in Ontario. This is a family law concept and may apply when two people are living in a conjugal relationship concept. After three years of cohabitation, there may be support payments payable by one party to the other should their relationship break down. Exceptions may apply, most notably if they have a child together. 

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    Family law implications can be complex and vary across provinces and territories. In some parts of Canada, common-law couples have the same rights as married couples, and property rights may apply even for common-law couples. 

    Regardless, it is important to note that for tax purposes, there is only a 12-month threshold before common-law status applies. Once a couple has lived together for one year, they must report this change in status on their tax return. It is not optional. 

    When a couple is common-law, they may be able to save tax by combining medical expenses or donations on one spouse’s tax return to claim higher non-refundable tax credits. But they may also lose access to certain means-tested government benefits, like the GST/HST credit. 

    Summary

    Rental expenses can only be deducted when you incur them to earn an income. When someone pays you “rent,” it may not be rent from a tax perspective if it is simply a cost-sharing arrangement. 

    Although you can rent a property to a family member, it must be treated like you would if the tenant was an arm’s length stranger. So, make sure you understand the rules so that you file your tax return correctly.

    Have a personal finance question? Submit it here.



    About Jason Heath, CFP


    About Jason Heath, CFP

    Jason Heath is a fee-only, advice-only Certified Financial Planner (CFP) at Objective Financial Partners Inc. in Toronto. He does not sell any financial products whatsoever.

    Jason Heath, CFP

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  • What to know heading into tax season


    What to know heading into tax season – CBS News









































    Watch CBS News



    Tax season officially begins Monday. “CBS Saturday Morning” breaks down what to know to make the most of your returns.

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  • Bessent Says US-Europe Relations Have ‘Never Been Closer’ Despite Greenland Crisis

    DAVOS, Switzerland (AP) — U.S. Treasury Secretary Scott Bessent on Tuesday said America’s relations with Europe remain strong and urged trading partners to “take a deep breath” and let tensions driven by the Trump administration’s new tariff threats over Greenland “play out.”

    “I think our relations have never been closer,” he said, speaking on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland.

    On Saturday, Trump announced a 10% import tax starting in February on goods from eight European nations that have rallied around Denmark in the wake of his stepped up calls for the United States to take over the semi-autonomous territory of Greenland.

    Trump has insisted the U.S. needs the territory for security reasons against possible threats from China and Russia.

    The American leader’s threats have sparked outrage and a flurry of diplomatic activity across Europe, as leaders consider possible countermeasures, including retaliatory tariffs and the first-ever use of the European Union’s anti-coercion instrument.

    The EU has three major economic tools it could use to pressure Washington: new tariffs, suspension of the U.S.-EU trade deal, and a “trade bazooka,” the unofficial term for the bloc’s Anti-Coercion Instrument that could sanction individuals or institutions found to be putting undue pressure on the EU.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • How the White House and governors want to fix AI-driven power shortages and price spikes

    The White House and a bipartisan group of governors are pressuring the operator of the mid-Atlantic power grid to take urgent steps to boost energy supply and curb price hikes, holding a Friday event aimed at addressing a rising concern among voters about the enormous amount of power used for artificial intelligence ahead of elections later this year.

    The White House said its National Energy Dominance Council and the governors of several states, including Pennsylvania, Ohio and Virginia, want to try to compel PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants,

    The Trump administration and governors will sign a statement of principles toward that end Friday. The plan was first reported by Bloomberg.

    “Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region,” said Taylor Rogers, a White House spokeswoman.

    Pennsylvania Gov. Josh Shapiro is expected to be at the White House, a person familiar with Shapiro’s plans said, speaking on condition of anonymity ahead of the announcement. Shapiro, a Democrat, made his participation in Friday’s event contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers, the person said.

    But the operator of the grid won’t be there. “PJM was not invited. Therefore we would not attend,” said spokesperson Jeff Shields.

    It was not immediately clear whether President Donald Trump would attend the event, which was not listed on his public schedule.

    Trump and the governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s energy-hungry data centers. Meanwhile, more Americans are falling behind on their electricity bills.

    Consumer advocates say ratepayers in the mid-Atlantic electricity grid — which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers, some of them built, some not.

    However, they also say that the billions of dollars that consumers are paying isn’t resulting in the construction of new power plants necessary to meet the rising demand.

    Pivotal contests in November will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill for the data centers that underpin the explosion in demand for artificial intelligence. In parts of the country, data centers are coming online faster than power plants can be built and connected to the grid.

    Electricity costs were a key issue in last year’s elections for governor in New Jersey and Virginia, a data center hotspot, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission. Voters in New Jersey, Virginia, California and New York City all cited economic concerns as the top issue, as Democrats and Republicans gird for a debate over affordability in the intensifying midterm battle to control Congress.

    Gas and electric utilities sought or won rate increases of more that $34 billion in the first three quarters of 2025, consumer advocacy organization PowerLines reported. That was more than double the same period a year earlier.

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  • How the White House and governors want to fix AI-driven power shortages and price spikes

    The White House and a bipartisan group of governors are pressuring the operator of the mid-Atlantic power grid to take urgent steps to boost energy supply and curb price hikes, holding a Friday event aimed at addressing a rising concern among voters about the enormous amount of power used for artificial intelligence ahead of elections later this year.

    The White House said its National Energy Dominance Council and the governors of several states, including Pennsylvania, Ohio and Virginia, want to try to compel PJM Interconnection to hold a power auction for tech companies to bid on contracts to build new power plants,

    The Trump administration and governors will sign a statement of principles toward that end Friday. The plan was first reported by Bloomberg.

    “Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region,” said Taylor Rogers, a White House spokeswoman.

    Pennsylvania Gov. Josh Shapiro is expected to be at the White House, a person familiar with Shapiro’s plans said, speaking on condition of anonymity ahead of the announcement. Shapiro, a Democrat, made his participation in Friday’s event contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers, the person said.

    But the operator of the grid won’t be there. “PJM was not invited. Therefore we would not attend,” said spokesperson Jeff Shields.

    It was not immediately clear whether President Donald Trump would attend the event, which was not listed on his public schedule.

    Trump and the governors are under pressure to insulate consumers and businesses alike from the costs of feeding Big Tech’s energy-hungry data centers. Meanwhile, more Americans are falling behind on their electricity bills.

    Consumer advocates say ratepayers in the mid-Atlantic electricity grid — which encompasses all or parts of 13 states stretching from New Jersey to Illinois, as well as Washington, D.C. — are already paying billions of dollars in higher bills to underwrite the cost to supply power to data centers, some of them built, some not.

    However, they also say that the billions of dollars that consumers are paying isn’t resulting in the construction of new power plants necessary to meet the rising demand.

    Pivotal contests in November will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill for the data centers that underpin the explosion in demand for artificial intelligence. In parts of the country, data centers are coming online faster than power plants can be built and connected to the grid.

    Electricity costs were a key issue in last year’s elections for governor in New Jersey and Virginia, a data center hotspot, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission. Voters in New Jersey, Virginia, California and New York City all cited economic concerns as the top issue, as Democrats and Republicans gird for a debate over affordability in the intensifying midterm battle to control Congress.

    Gas and electric utilities sought or won rate increases of more that $34 billion in the first three quarters of 2025, consumer advocacy organization PowerLines reported. That was more than double the same period a year earlier.

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  • Anchorage Leaders Propose One-Time Tax Hike to Send Millions to Schools

    Anchorage city leaders are proposing a one-time tax increase to raise millions of dollars for the Anchorage School District, which faces an $83 million budget shortfall.

    Mayor Suzanne LaFrance said she’s requesting the Assembly set aside a slate of revenue proposals, including her office’s proposed 3% sales tax, in order to focus on the $12 million education tax levy.

    “Over the last several months, we have been having a vital conversation around the municipality’s long-term fiscal health and the need to diversify our revenue, but the crisis facing our schools is too urgent to wait,” LaFrance said at a news conference Monday morning.

    If approved by the Assembly, the tax would go on the April city ballot. If voters pass the tax, city officials say Anchorage property owners should expect an increase of $27.40 per $100,000 of assessed property tax value.

    ASD Superintendent Jharrett Bryantt said, over the past decade, inflation has made budgeting difficult for the district, which has seen declining enrollment and a large exodus of teachers. The state Legislature approved an increase to per-student funding last year, even overriding a veto from Gov. Mike Dunleavy to keep the funding intact, but Bryantt said it doesn’t fully fill the gap.

    “While the $700 increase did provide relief, it did not fully restore what schools have lost,” Bryantt said. “As a result, even though we’re in the process of making significant reductions outside of the classroom, deeper than we’ve cut in many, many years, ASD is still facing difficult choices for the ’26-’27 budget.”

    State law puts a cap on how much a city can tax for education, and Anchorage typically taxes to that limit. However, the per-student funding increase at the state level allows Anchorage officials to increase the amount the city taxes for education, Bryantt said.

    He said the money from the tax levy would go entirely to addressing high class sizes.

    “If voters approve this levy, I will commit to directing these dollars to teaching positions and essential student services,” Bryantt said. “Manageable class sizes are at the top of the list of what our parents desire for their children.”

    The proposed tax levy comes at the expense of LaFrance’s proposal for a 3% sales tax, which she initially wanted the Assembly to put on the spring ballot. Her administration has said the city faces a fiscal cliff, and funding from the sales tax would’ve gone toward child care, housing, public safety, capital projects and property tax relief.

    LaFrance said the tax levy is a more immediate solution to support another struggling city service: education.

    “We believe it is too much to have two revenue measures on the ballot,” LaFrance said. “A sales tax proposal won’t generate revenue for one and a half to two years or so, whereas the levy will be immediate.”

    Though LaFrance is setting aside her sales tax proposal, for now, she said the city still faces a tough financial future.

    “We are still approaching the fiscal cliff, and the municipality faces budget gaps in the next few years,” LaFrance said. “We will be presenting scenarios for potential service cuts.”

    Assembly members plan to introduce the tax levy proposal during their meeting Tuesday night, said Vice Chair Anna Brawley. Brawley is one of the co-sponsors of the tax levy, along with members Erin Baldwin Day and Felix Rivera. In order to put the tax on the April ballot, eight members would need to approve it by Jan. 27. Brawley also introduced a 2% increase to the city’s bed tax, but she said she’s willing to set her proposal and the mayor’s sales tax proposal aside to focus on education funding.

    “I know this conversation is not over, and so for my part, I am happy to set aside the revenue measure for the time being,” Brawley said. “But I will work with my colleagues, with the mayor, and with others in the community, to really continue that conversation and bring forward, you know, what kind of city do we want to be in the future.”

    Bryantt said the tax levy won’t fully address the district’s budget shortfall, but he’s hopeful it will hold the district over while state leaders work on a long-term budget solution.

    “We do anticipate that there will be a change in state leadership as we look ahead towards the governor’s race, and we are yearning for a long-range fiscal vision and fiscal plan for the state and specifically for education,” Bryantt said.

    Anchorage’s municipal election is scheduled for April 7.

    ___ This story was originally published by Alaska Public Media and distributed through a partnership with The Associated Press.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • Study questions whether Detroit sales tax is worth it – Detroit Metro Times

    Detroiters already pay one of the highest tax rates in the state. 

    Is the city ready for another tax hike?

    A new analysis from the Citizens Research Council of Michigan examined the potential impact of a 1% sales and use tax in Detroit and found that the revenue may be too limited to justify the steps needed to adopt it.

    The tax could generate between $42 and $72 million a year, but that is only 5% or less of the city’s budget, the report states.  

    The 59-page report, “Evaluating a Local-Option Sales Tax Policy for Detroit,” was produced at the request of the Detroit City Council’s Legislative Policy Division, which asked the nonpartisan research group to examine “innovative ways to increase city revenues” without “placing an undue burden on its residents.”

    The Citizens Research Council says the revenue from a local tax would be limited, and the barriers to adopt it would be significant. 

    “While the path to adopting a local sales tax option for Michigan’s local governments is daunting,” the report argues that broader access to local taxes could improve the fiscal health of large cities and counties.

    Detroit already has multiple local taxes, including a city income tax, casino wagering taxes, and utility surcharges, in addition to county and state levies.

    “Because of the layering of all these taxes, many of which are levied at the highest (or among the highest) rates in the state, Detroit residents are among the highest taxed in the state,” the report states. 

    Even estimating what Detroit could raise is complicated, the report says, because Michigan does not track sales tax collections by city and because visitor spending is hard to measure. 

    The Citizens Research Council used two main approaches. One relies on household retail spending estimates. Detroiters spend $16,727 per household on retail goods, which would translate to about $167 per household under a 1% tax. Multiplied across 253,207 households, that comes to $42.4 million annually. 

    The other approach attempts to capture a wider range of taxable activity beyond retail goods. Under that approach, the Citizens Research Council estimates that a local sales tax of 1% could raise nearly $72 million annually. 

    Even if Detroit’s leaders decided the money is worth it, the report says a local sales tax would require major state action first.

    “Authorizing a local sales tax in Michigan will require amending the state Constitution, adopting state statutes authorizing local sales and use taxes, the local governing body to enact an ordinance, and voter approval of a new tax,” the report states.

    Because so many purchases now happen online, the report says a local sales tax would probably need to be collected and managed at the state level.

    Madhu Anderson, the report’s author and a senior research associate for local affairs at the Citizens Research Council, said that the path of adopting a local sales tax “is daunting” and that the research suggests it “may be better suited to be levied at the county or regional levels to maximize potential revenue and minimize potential economic disruptions.”

    The report says the city is working to raise service levels in the years following bankruptcy, while also planning for major obligations ahead.

    “The City of Detroit is reviewing potential local option taxes to raise city revenues to improve city services and address needs it anticipates in the future,” the report states, citing efforts to put services “on par with surrounding communities,” make pension payments that are again “a city responsibility after a 10-year hiatus,” and “capture economic benefits from growth in visitor activity downtown.”

    The Citizens Research Council notes that the state’s municipal finance structure relies heavily on property taxes that are limited by state law. The report points out that local governments in Michigan have “few options to levy local taxes,” which can be especially punishing in communities with weaker tax bases.

    For now, the report does not urge Detroit to race toward a ballot proposal to raise the sales tax. It leaves city and state leaders to decide whether an additional $42 million to $72 million a year is worth pursuing a constitutional amendment, new statutes, a local ordinance, and a citywide vote, while also trying to avoid pushing residents and shoppers to lower tax areas.


    Steve Neavling

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  • Proposed billionaires’ tax rattles Silicon Valley, entangles Gov. Newsom

    LOS ANGELES — A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while Democratic Gov. Gavin Newsom maneuvers to defeat a levy that he fears will lead to an exodus of wealth.

    A technology mecca, California has more billionaires than any other state — a few hundred, by some estimates. Nearly half its personal income tax revenue, a financial backbone in the nearly $350 billion budget, comes from the top 1% of earners.

    A large health care union is attempting to place a proposal before voters in November that would impose a one-time 5% tax on the assets of billionaires — including stocks, art, businesses, collectibles and intellectual property — to backfill federal funding cuts to health services for lower-income people that were signed by President Donald Trump last year.

    In a state with a vast gap between rich and poor, the plan has resulted in a tangle of competing interests at a time when both Democrats and Republicans are struggling to respond to economic anxiety driven by rising costs ahead of this year’s midterm elections.

    An online war of words has tech leaders pondering a hollowing out of Silicon Valley, and millions of dollars are flowing to political committees engaged in the fight. That includes $3 million from billionaire Peter Thiel, a founder of PayPal, to a committee tied to a business group opposing the tax.

    However it’s not clear if the proposal will make the ballot, with more than 870,000 petition signatures required for it to qualify.

    Although the tax would affect only a minuscule slice of California’s roughly 39 million residents, it would siphon money from an immense pool of wealth. If would apply retroactively to billionaires living in the state as of Jan. 1.

    At least 25 billionaires listed among Forbes magazine’s 2025 rankings of the world’s 500 wealthiest people either lived in California or had some significant ties to the state, based on a review by The Associated Press. But determining whether they were full-time residents or just frequent visitors could turn into a matter of dispute, since many of them own property elsewhere.

    “You are really playing with fire with this one,” said Aaron Levie, CEO of the publicly traded Silicon Valley company Box. He fears that the proposed tax would drive entrepreneurs to look elsewhere to run their companies and launch startups.

    Even liberal-leaning tech pioneers would “find it absurd just on pure economic and structural grounds, even if they might agree that the cause itself is very worthy,” said Levie, who is not a billionaire.

    Newsom has long opposed state-level wealth taxes, believing such levies would be disadvantageous for the world’s fourth-largest economy. At a time when California is strapped for cash and he is considering a 2028 presidential run, he is trying to block the proposal before it reaches the ballot.

    Analysts say an exodus of billionaires could mean a loss of hundreds of millions of tax dollars.

    “It’s one of the reasons why Newsom’s path to the Democratic nomination is not going to be an easy one,” Claremont McKenna College political scientist Jack Pitney said. “He’s already facing a (budget) deficit the size of which is uncertain … and in the years to come, a billionaires tax that could backfire badly.”

    The proposal has created a deep rift between Newsom and prominent members of his party’s progressive wing, including Vermont Sen. Bernie Sanders, who endorsed it and said it should be a template for other states.

    “Our nation will not thrive when so few have so much while so many have so little,” Sanders said on the social platform X.

    Another supporter, and a potential 2028 Newsom rival, is Democratic Rep. Ro Khanna, who mocked billionaires for threatening to flee over a tax intended to provide health care for lower-income people.

    The measure’s lead proponent, the Service Employees International Union, sees the threat of an exodus as exaggerated.

    The tax is a “workable response to a crisis created by Congress,” Suzanne Jimenez, chief of staff of SEIU-United Healthcare Workers West, said in a statement. She added that it would “keep emergency rooms open, hospitals staffed and health care systems functioning.”

    The California Business Roundtable, meanwhile, is leading an effort to defeat the measure, saying it would “undermine our economy, decimate the state budget, drive investment out of the state and ultimately make everyday life more expensive for working families.”

    Fleeing California because of its high cost of living and reputation for stringent regulations started to gather momentum well before the proposed wealth tax began circulating last year.

    Elon Musk, the world’s wealthiest man with a $724 billion fortune, bought a home in Texas and moved his electric automaker Tesla to Austin several years ago.

    The financial threat posed by the proposed tax apparently is pushing even more of Silicon Valley’s renowned pioneers to curtail their exposure to California and its liberal policies, including Google co-founders Larry Page and Sergey Brin, who moved to the state during the mid-1990s for graduate study at Stanford University.

    Page and Brin stepped away from their executive roles years ago but remain the largest shareholders in Google parent company Alphabet, with stakes that account for most of their combined fortunes of $530 billion, according to Forbes.

    But both men have begun moving more of their assets to Florida, according to multiple reports. Google, which has been based in Mountain View for the past quarter century, did not respond to an AP inquiry about their recent moves.

    ___

    Liedtke reported from San Ramon, California. Associated Press writer Sophie Austin in Sacramento, California, contributed.

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  • In New York, Hochul Moves to Thread Needle Between Democratic Divides Ahead of a Contested Election

    ALBANY, N.Y. (AP) — Ahead of a tough reelection fight, New York Gov. Kathy Hochul unveiled an agenda aimed at bridging the divides in the Democratic Party — moving to fight President Donald Trump and capture progressive excitement surrounding Mayor Zohran Mamdani, while also tending to anxiety among moderates about public safety and protests outside synagogues.

    In most states, governors use their annual State of the State addresses to detail their upcoming legislative plans for the year, boosting their own records while charting a path ahead.

    For Hochul, however, her speech this year carried additional significance, as the centrist from Buffalo faces challenges from both her political left and right in a heavily contested election cycle.

    Her own second-in-command, Lt. Gov. Antonio Delgado, has assailed her for months and launched an unusual primary challenge against his boss, casting Hochul as a reactive executive unable to meet the political moment during Trump’s second term. Republican Bruce Blakeman, a Trump-aligned county official in New York’s City’s suburbs, has also announced a run for governor, bashing Hochul over the state’s high taxes and cost of living.

    At the same time, the governor is under mounting pressure from the progressive wing of the Democratic Party to help steward Mamdani’s ambitious agenda at the state Capitol and raise taxes on the state’s richest residents.

    Hochul appeared aware of the rocky political terrain during her State of the State, announcing a slate of affordability proposals, pledging additional public safety programs as well as a raft of proposals meant to counter the Republican president’s agenda.

    “If there’s one thing I know, it’s that when New Yorkers move forward with strength and compassion side by side there is no challenge we cannot meet, no tyrant we cannot beat and no future we cannot build,” she told a packed crowd at The Egg, a striking domed theater near the state’s ornate Capitol building.

    Child care — a signature priority for Mamdani — was also at the top of Hochul’s list, with the governor reiterating plans to set up a child care program for 2-year-olds in New York City, along with a wider plan to establish a universal pre-K program throughout the state by 2028.

    Mamdani, who was seated near the stage, rose to applaud Hochul’s child care plan. The rest of the room followed, delivering her a standing ovation. Amid the clapping, she added: “Republicans have kids, too, you can stand.”

    Hochul then turned to crime, promising to continue enhanced police patrols on the city’s subways and expand the use of mental health teams throughout the transit system.

    She also proposed a ban on protests within 25 feet of a house of worship, referencing a recent protest outside a synagogue in Queens where people chanted pro-Hamas remarks, with Hochul saying “That’s not free expression. That’s harassment. And targeting a Jewish community in this way is antisemitism.”

    Hochul wove heavy criticism for the federal government and Trump into her speech, at one point saying that she would ensure New York’s immunization standards “are set by trusted medical experts, not conspiracy theorists.”

    The governor debuted two proposals centered on the president’s immigration crackdown — one that would allow people to sue federal officers “when they act outside the scope of their duties,” and another to ensure sensitive locations such as schools, hospitals and houses of worship can be “protected from civil immigration enforcement without a judicial warrant.”

    “Public safety will always come first, but it must be pursued lawfully and with humanity,” Hochul said.

    Her plans will be subject to negotiations with the state Legislature, which is controlled by Democrats, over the coming months.

    While Hochul was in Albany, Delgado, who the governor picked to be her No.2 in 2022, was running some counter programming, making stops along what he has called the “State of the People Tour.”

    “This moment demands urgency, honesty, and the courage to act. New Yorkers can’t afford Governor Hochul’s half-measures,” he said in a statement.

    After Hochul’s address, Blakeman fired off his own criticism, saying: “If speeches fixed problems, New York would be thriving. Instead, families are struggling and businesses are leaving.”

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Photos You Should See – January 2026

    Associated Press

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  • Fact-check: Florida Gov. DeSantis’ State of the State speech

    Gov. Ron DeSantis told Floridians that under his leadership the state’s economy soared as he cracked down on illegal immigration and protected election integrity. 

    “We have delivered big results, and we have set the standard for the rest of the country to follow,” DeSantis said Jan. 13.

    It marked the two-term governor’s final State of the State address kicking off Florida’s legislative session. Lawmakers are expected to consider bills on property tax exemptions, lowering the age to buy a gun, prescription drug costs and redistricting. DeSantis has called a special redistricting session to begin on April 20 and has floated calling another to address overhauling the state’s property tax system.

    DeSantis, who dropped out of the 2024 Republican presidential primary, did not address his political future. He is term limited and can’t seek reelection.

    We fact-checked a few of the governor’s statements and a response from the Florida House Democratic leader about Floridians’ cost-of-living concerns. 

    “Florida represents about 6.5% percent of the U.S. population. Yet, since 2020 our economy has accounted for more than 14% of all new jobs produced throughout America.”

    This is close to accurate.

    Since January 2020, Florida has added 971,400 jobs, which is almost 13% of the nearly 7.5 million jobs added in the U.S. during that period. (The governor’s office confirmed this was their starting point.)

    The calculation varies depending on the start date. Starting the count in January 2021 — another read of “since 2020” — shows a gain of 1.4 million jobs in Florida and almost 17 million nationally. For that time frame, Florida’s share is about 8.3%. (The job gains are larger starting in January 2021 because the coronavirus pandemic dramatically reduced employment starting in March 2020.) 

    Florida is the only state that requires state and local cooperation with federal immigration enforcement efforts, and “is responsible for the apprehension of nearly 20,000 illegal aliens. … Our people are safer because of these efforts.”

    The statements about federal cooperation and numbers are accurate, with additional information needed on public safety.

    Florida has been one of the top enforcers of the Trump administration’s mass deportation efforts, trailing only Texas for arrests.

    Through “Operation Tidal Wave” — the joint operation between Florida’s state and local agencies and Immigration and Customs Enforcement — more than 10,400 immigrants in the country illegally were arrested in 2025, according to state data. DeSantis said an additional 9,600 arrests were made through an agreement that allows state and local law enforcement to enforce certain federal immigration laws, bringing the total to around 20,000 arrests. 

    The Miami Herald corroborated that figure using data compiled by the University of California-based Deportation Data Project. The newspaper said 20,000 is an undercount because the data goes through mid-October and does not include U.S. Customs and Border Protection arrests. 

    The Herald found that more than 4,800 of the 20,000 people detained in Florida had only immigration violations, and no criminal charges or convictions. A quarter of those arrested had criminal convictions, and the rest had pending criminal charges that include nonviolent crimes such as driving without a valid license. 

    Florida has signed the most agreements with ICE to enforce federal immigration laws than any other state — 325 as of Sept. 30, a 577% increase since Trump’s inauguration.

    “Florida now has the highest average minimum teacher salary in the southeast region, all told, we have provided a record of almost $6 billion towards this effort to better compensate our teachers.”

    This is accurate but needs context.

    DeSantis signed legislation in 2020 mandating a $47,500 minimum starting salary for public school teachers to boost recruitment, putting Florida in the lead for the metric in the southeast.

    Because funding was primarily directed to the minimum starting pay, veteran Florida teachers have seen little growth, giving the state the lowest overall average teacher pay in the region, around $54,000. Georgia’s overall average, by comparison, is more than $10,000 higher, despite its lower starting pay.

    Since 2020, DeSantis has also allotted nearly $6 billion in funds for teacher salaries. This includes a $1.56 billion increase in his proposed 2026-27 budget, almost 15% more than last year’s budget and the state’s highest-ever teacher salary increase. 

    The Florida Education Association, the state teacher’s union, says despite recent pay increases, Florida is consistently at the bottom for U.S. teacher pay.

    The organization refers to the National Education’s Association’s 2025 report, which ranked Florida second-to-last in the nation for average teacher pay for the second consecutive year, saying the pay increases have failed to keep pace with inflation.

    DeSantis’ Florida Department of Education has rejected the NEA’s ranking, saying the organization doesn’t consider factors such as cost of living and Florida’s lack of state income tax.

    “When a member of a group of thieves was interviewed on CNN, and they asked, ‘Why do you steal in New York, even though you like spending the money in Florida?’ The response was very simple, from the thief: ‘Because in Florida they put you in jail.’”

    When DeSantis said something similar in 2024, law enforcement experts cautioned that it was anecdotal.

    During a Feb. 2, 2024, segment, CNN law enforcement analyst John Miller recalled a conversation — similar to the account DeSantis shared — he’d had with detectives tracking a New York crew suspected of stealing from pedestrians and retail outlets who said they stole in New York and spent the proceeds in Florida. CNN didn’t interview a thief on air; Miller referenced conversations he’d had with unnamed detectives, who he said in turn had talked to an unnamed thief.

    Experts said it’s unclear how common the pattern Miller described actually is, and if it exists, whether it’s driven by prosecutorial practices in two different states.

    Florida House Democratic Leader Fentrice Driskell: “Cost of living is the No. 1 issue facing Floridians. We all hear it from our communities back home.” 

    This is a correct read of Floridians’ sentiments, according to a November 2025 Florida Atlantic University poll.

    The latest poll available from the university called Florida’s high cost of living a “pressure point” for the state as 90% of residents said they were at least somewhat concerned about inflation and 80% were concerned with housing affordability. 

    The poll also found that nearly 50% of Floridians surveyed say they have considered moving out of the state because of the cost of living. 

    One thousand American adults over the age of 18 responded to the survey between Sept. 30 and Oct. 10, 2025, with a margin of error of 3 percentage points.

    RELATED: All of our fact-checks of Florida politicians and officials

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  • Tax implications of shareholder loans – MoneySense

    When your corporation owes you money

    If you personally pay for expenses on behalf of your company, it owes you for these personally paid corporate expenses. You can be reimbursed tax-free. 

    If you deposit money to your corporation, the same situation applies—that is, you are owed money back tax-free. This situation can occur if you have to top up your corporate bank account or deposit money to be used for a real estate down payment for the company. 

    The rest of this summary will focus on situations where you owe money to your corporation. 

    Clearing a loan with a bonus or dividends

    Some business owners take withdrawals over the course of the year from their corporation without running them through payroll. At year-end, you can address this by declaring a bonus with payroll withholding tax payable in January. This bonus has the identical tax treatment to salary, as both are reported as employment income on your T4 slip. 

    The other alternative is to declare a shareholder dividend. This has no withholding tax. The tax implications will instead be a combination of corporate and personal tax. This is because unlike a salary or bonus, dividends are not tax deductible for a corporation. Since a dividend is a distribution of after-tax corporate profits, the personal tax payable is lower than a salary or bonus. 

    However, the all-in tax is comparable, and in most cases, higher than paying a salary or bonus at most income levels in most provinces and territories.

    Income Tax Guide for Canadians

    Deadlines, tax tips and more

    Shareholder loan taxation

    If you want to loan money to yourself or a family member from your corporation, this is generally considered taxable income. The default assumption by the Canada Revenue Agency (CRA) is that loans are disguised as compensation unless a specific exemption applies. 

    The primary exception is if you repay the loan within one year after the corporation’s fiscal year end. For example, a loan outstanding on December 31, 2025 for a corporation with a calendar year-end needs to be repaid by December 31, 2026. If not, it will be considered taxable. 

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    The CRA does not like when you engage in a series of loans and repayments, either, and may treat the original loan as being taxable. So, be careful about back-to-back loans. 

    Employee loans

    There is a very narrow exemption for loans to employees for specific purposes like buying a work vehicle for employment duties, a home, or shares of the employer. It does not happen often in real life, and owner-managers who think they can loan money to themselves under this exception are probably out of luck. Specified employees who own 10% or more of a company cannot qualify. 

    Interest and principal benefits

    Business owners and their accountants often overlook the deemed interest benefit of a shareholder loan. There should be an income inclusion for the notional interest on the loan. The rate applied is CRA’s prescribed rate. As of Q1 2026, the rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 3%.

    If a loan is forgiven, the principal may be considered a taxable benefit to the owner-manager. The problem is that the corporation may not get a tax deduction, so there is an element of double taxation that may apply. 

    Inter-company loans

    If an owner-manager owns more than one corporation, they sometimes lend money between two companies. You may be able to loan money between two companies you own without triggering tax. 

    If you are loaning money between an operating company that is a going concern and an investment holding company, be careful about exposing shareholder loan assets owned by the operating business to company creditors. In some cases, it may be better to ensure that dividends can be paid from one company to another, either directly with the second company as a shareholder or indirectly using a trust. 

    Business owner takeaways

    Shareholder loans should usually be temporary as opposed to permanent. They can have unexpected tax implications, so proper planning is key. 

    Owner-managers should discuss shareholder loans with their tax accountant with a proactive planning-first approach rather than after year-end when filing their tax return.

    Jason Heath, CFP

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  • French Tax Agent Allegedly Sold Personal Data of Crypto Users to Criminals

    A French tax agent, identified as Ghalia C. in French media reports, has been accused of accessing and selling sensitive information from internal French tax authority databases. Criminals are said to have then used this data in at least one violent home assault on a prison officer and his wife, stemming from a dispute over smuggled mobile phones in a prison cell. 

    Ghalia also queried details on those known to be involved with crypto who would be suspected of having substantial holdings of digital cash, potentially setting them up for “$5 wrench attacks” where thieves use physical force to force irreversible transfers of bitcoin, stablecoins, or other types of digital assets. In addition to traditional crypto hacking and thefts over the internet, such as a recent example where an Office Space-style exploit was used, physical attacks on crypto users, where transfers are forced under threat or use of violence, are becoming increasingly common.

    The tax agent in question recently lost an appeal and will remain in custody after a hearing at France’s appellate court. She admitted providing the data but insisted she was unaware of the buyers’ plans. In an English translation from French reports, she stated, “I gave information about this person. I knew nothing of what was done and I would like to ask forgiveness from this couple who were attacked.”

    Prosecutors noted her refusal to unlock her phone or name her sponsor, arguing she abused her role to aid a repeat offender. Beyond crypto users and the prison guard who was the victim of a home invasion, Ghalia allegedly sold details on health inspectors, a judge, and billionaire Vincent Bolloré.

    2025 marked an all-time record in terms of physical crypto thefts, and a substantial number of these attacks have occurred in France. For example, there was the abduction of David Balland, who is a co-founder of crypto hardware wallet manufacturer Ledger, and his partner, who were held for ransom tied to their crypto assets. Additionally, kidnappers targeted the father of a prominent crypto entrepreneur and went as far as to sever a finger in a ransom scheme, but police intervened and rescued him.

    Of course, these threats extend beyond France, as seen in a San Francisco home invasion late last year where an attacker disguised as a delivery driver entered a Mission Dolores residence in broad daylight, pulled a gun, duct-taped the victim, and coerced the transfer of $11 million in crypto.

    While 2025 set records for crypto’s role in broader illicit flows, which blockchain analytics firm Chainalysis says reached $154 billion in transactions to illicit addresses, Ghalia took payments through traditional means via bank cash deposits and Western Union transfers. 

    No reports directly link Ghalia’s data sales to one of the specific crypto thefts that took place in France last year, but this case underscores how casual handling of personal information clashes with the reality of irreversible payments of digital cash. And this juxtaposition between crypto and personal data security is increasingly put on display in more cases, as also illustrated by the case of the data breach at a third-party payment processor used by Ledger reported earlier this week.

    Crypto enables full financial self-custody, yet sensitive data remains vulnerable in centralized databases and has not seen a similar upgrade towards a more decentralized infrastructure. Bitcoin advocates and cypherpunks have consistently flagged government and institutional personal data processing and storage mandates as major opsec risks. Unfortunately, widespread data mishandling may persist until more breaches lead to a push for a new paradigm of individually-controlled data as opposed to government and corporate-controlled honeypots.

    Kyle Torpey

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  • When can you file your taxes in 2026? IRS says the tax filing season start date is Jan. 26.

    Taxpayers eager to receive their tax refunds should mark Jan. 26, 2026, on their calendars, as the IRS said Thursday it will begin accepting federal income tax filings on that date.

    Annual tax refunds are typically the largest checks that households receive each year, with last year’s average payment amounting to almost $3,200, according to IRS data. This year’s refund season could be even larger, with the typical check set to increase by an additional $1,000, financial services company Piper Sandler said in a recent analysis.

    2025 tax returns will be impacted by a number of major changes signed into law through the Republicans’ “big, beautiful bill” act, which enacted a host of new tax breaks retroactive to 2025. These include eliminating taxes on some overtime and tipped income, as well as lifting the cap on the deduction for state and local taxes, or SALT, from $10,000 to $40,000. 

    Federal income tax returns are due April 15, although people who need more time can file for an automatic tax extension before that. An extension gives taxpayers until Oct. 15 to file, although any taxes owed must still be paid by April 15 to avoid penalties.

    When will you get your refund?

    The question on most taxpayers’ minds is how long it will take for their refund to be deposited.

    That depends on whether a taxpayer files electronically or submits a paper return, as well as whether the IRS identifies any problems with a filing.

    People who file electronically typically receive their refunds in less than 21 days. That means a taxpayer who files a Form 1040 on Jan. 26 could receive a refund by Feb. 16, assuming there are no issues with the return.

    Filers can use the IRS’ “Where’s My Refund” tool to check the status of their return, with the agency typically providing information about 24 hours after an electronic filing.

    The IRS said on Thursday that “Where’s My Refund” will require four weeks to provide information for paper tax returns. Paper tax forms typically take longer for the IRS to process because they require manual handling, unlike e-filed returns.

    Edited by

    Sarah Lynch Baldwin

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  • Georgia Republicans move to scrap state income tax by 2032 despite concerns

    ATLANTA — Eliminating state income taxes sounds great to many voters, but Republicans backing the push in multiple states still face questions about whether such big tax cuts can be made without raising other taxes or sharply cutting state funding for education, health care and other services.

    Georgia on Wednesday became the latest state to launch a bid to abolish its personal income tax, with Republican leaders in the Senate backing a proposal to zero it out by 2032. This year, Georgia’s personal income tax is projected to collect about $16.5 billion, or 44% of the state’s general revenue.

    The push is driven by politics. Lt. Gov. Burt Jones, the Republican who leads the state Senate, has made eliminating income taxes a centerpiece of his 2026 campaign for governor. State Sen. Blake Tillery, a Vidalia Republican who led a committee to abolish the tax, is among candidates to succeed Jones as lieutenant governor.

    “This is the first vote that we are going to get to take to address affordability,” Tillery said.

    But it’s unclear if the proposal will pass. Georgia House Republicans may want to continue nibbling away at the tax in smaller bites, preferring a “measured” approach. Republican House Speaker Jon Burns of Newington said Wednesday that his big 2026 goal is to eliminate property taxes for homeowners, but said he’s willing to consider the Senate plan.

    Republican Gov. Brian Kemp, serving his last year, has been cool to total elimination of the income tax. He declined to comment Wednesday on the Senate plan, but spokesperson Carter Chapman said Kemp wants “to continue lowering taxes and putting more money in Georgians’ pockets as he has throughout his term.”

    The state’s Democratic minority opposes the move, saying it would mostly benefit high earners and the state needs money to provide services.

    Iowa, Kentucky, Mississippi and Missouri have all set goals to abolish the personal income tax, joining eight other states that don’t tax personal income. Eight other states besides Georgia are cutting personal income tax rates this year, according to the Tax Foundation, a Washington, D.C., group generally skeptical of higher taxes.

    “We’ve seen a lot of states cut their income tax rates in the last four or five years, especially during the COVID-19 pandemic and coming out of it,” said Aravind Boddupalli, senior researcher at the Urban-Brookings Tax Policy Center in Washington, D.C.

    Supporters say cuts help a state compete for new residents and businesses, pointing to growth in Texas and Florida, two states without personal income taxes.

    “Your income tax is a tax on productivity,” said Manish Bhatt, who studies state taxes for the Tax Foundation. “If you are taxing productivity, you are potentially losing out on economic gains.”

    Georgia has already been cutting income taxes, taking what was once a top income tax rate of 6% and lowering it to a 5.19% flat rate. Republicans broadly support a further cut for individual and corporate taxpayers to 4.99% this year, worth an estimated $800 million in foregone tax revenue.

    The Senate plan would then freeze the corporate rate and focus on individual tax cuts. It proposes in 2027 to exempt the first $50,000 of income for a single person or $100,000 for a married couple, up from $12,000 and $24,000 now.

    Faced with Democratic criticism about affordability, the big increase in exempt income is central to Republicans’ own arguments about how they can make money stretch farther. About 70% of Georgians reported less than $100,000 of taxable income in 2024, according to state figures.

    “It is a plan that gives benefits first to hardworking families,” Tillery said.

    The initial rate cut, plus the exemption proposal, would lower Georgia revenue by $3.8 billion in its 2027 budget year. Tillery says the state could pay by using surplus tax revenue and shifting back to paying for capital expenditures through borrowing instead of cash. But those moves probably wouldn’t cover the foregone revenue even in the first year, much less $13 billion more in cuts to get to zero.

    Tillery said revenue should be bolstered by trimming business income and sales tax breaks, saying legislators should reduce “corporate welfare.” But lawmakers and Kemp have balked at curtailing those measures in recent years.

    Tax cuts haven’t always been a political bonanza. In Kansas, after Republicans under Gov. Sam Brownback cut income taxes steeply more than a decade ago, voters revolted at budget cuts and lawmakers imposed multiple tax increases to cover persistent budget shortfalls, including restoring some income tax cuts. Democratic Gov. Laura Kelly won her first term in 2018 by framing the race as a referendum on Brownback’s policies.

    “State income taxes are only bad if you fundamentally don’t believe that the services, the public investments that state governments provide, are worth anything,” said Matt Gardner, a senior fellow with the left-leaning Institute on Taxation and Economic Policy .

    In Missouri, Republican Gov. Mike Kehoe and GOP legislative leaders have made phasing out the state’s income tax a top priority for the session starting Wednesday. They’re looking to expand sales taxes to services which currently are untaxed to help offset lost revenue.

    “We want to do this in a smart, efficient way that’s not going to have the state go off some sort of fiscal cliff,” Missouri House Majority Leader Alex Riley told The Associated Press on Tuesday.

    But expanding sales taxes could fall more heavily on poorer taxpayers. The liberal-leaning Georgia Budget and Policy Institute estimated that if Georgia doesn’t expand its sales tax, the combined state and local sales tax rate would have to rise sharply from the current 7.42% to recover revenue losses.

    All that leads to questions about income-tax elimination plans, even from Republicans. Burns, the Georgia House speaker, said he’s “open” to any plan that benefits Georgians.

    “But we’ve got to have the details, and it has to work,” Burns said. “We need to make sure we can continue to do vital services — health care, public safety, education, all the things we talked about.”

    ___

    Associated Press writer David Lieb contributed from Jefferson City, Missouri.

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  • Sandwich shop owed more than $40,000 in taxes before seizure, city says

    Long-running Denver lunch spot Mr. Lucky’s Sandwiches, which closed in December after Denver’s Department of Finance seized its two locations, owes more than $40,000 in unpaid taxes, according to the city agency. Galen Juracek, who owns the shops in Capitol Hill and the Highland neighborhood, specifically owes $40,556.11.

    Multiple notices posted to the door of Mr. Lucky’s Capitol Hill location showed that the city demanded payment for the back taxes starting in July. But the city’s “distraint warrant” — a legal notice that a business owner owes a specific amount, and that the business could be seized if they don’t pay it — notes the shops, at 711 E. 6th Ave. and 3326 Tejon St., were forced to close on Tuesday, Dec. 23.

    Mr. Lucky’s had already decided it would close its two locations by the end of 2025, said Laura Swartz, communications director for the Department of Finance. But the city’s seizure of the business shows that it had not been keeping up on basic requirements, with a $39,956 bill for unpaid sales taxes and $600.11 in “occupational privilege” taxes, which fund local services and allow a business to operate within a specific area.

    “When businesses charge customers sales tax but then do not submit that sales tax to the city, the city is responsible for becoming involved,” she said in an email to The Denver Post

    Juracek did not respond to multiple phone calls from The Denver Post requesting comment. His business, which is described on its website as a “go-to spot for handcrafted sandwiches since 1999, roasting our meats in-house and making every bite unforgettable,” is listed on the documents as G&J Concepts.

    John Wenzel

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  • The tax implications of moving to Québec – MoneySense

    Two tax systems

    Unlike other parts of Canada, you file two tax returns when you live in Québec: a federal tax return with the Canada Revenue Agency (CRA) and a provincial tax return with Revenu Québec. 

    In addition to a federal T1 tax return, you file a provincial TP1 tax return. This alone can add complexity and, in many cases, higher accounting costs—especially if you have a business, significant investment income, or multiple sources of income.

    Québec tax rates

    The tax rates in Québec are relatively high compared to other provinces. This is noticeable particularly at lower- and middle-income levels. The gap tends to narrow at higher incomes, but taxpayers can expect to pay more in Québec than the rates payable in Ontario or western provinces. 

    For example, at $75,000 of taxable income, a Québec resident would pay about $17,000 of tax, ignoring tax deductions or credits. In Ontario, that same taxpayer would pay about $13,600 of tax. In Alberta, it would be roughly $14,100. 

    Tax credits and social programs for families

    Like other parts of Canada, there are province-specific credits and programs that apply. Two appealing ones for families are the Québec Parental Insurance Plan (QPIP) and subsidized daycare program.

    The QPIP replaces federal employment insurance (EI) parent benefits by providing income to parents after the birth or adoption of a child. It is more generous and flexible, and administered through payroll. 

    Income Tax Guide for Canadians

    Deadlines, tax tips and more

    Licensed daycare centres offer heavily subsidized care with a flat fee of about $10 per day. 

    Child benefits—the Allocation familiale (Québec Family Allowance)—is integrated with the Canada Child Benefit (CCB). Québec residents receive a lower CCB in recognition of the provincial benefits provided in that province. The combined total is comparable to what a parent would receive in other provinces. 

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    Québec Pension Plan for retirees

    The Québec Pension Plan (QPP) complements the Canada Pension Plan (CPP) for retiree pension benefits. Just like an employee or self-employed person in other parts of Canada pays CPP premiums, a Québec worker pays QPP premiums. The two programs coordinate benefits, including retirement pensions. 

    If you worked in both Québec and elsewhere in Canada, and apply for your pension while living outside Québec, you apply to the CPP. If you always worked in Québec but live outside of Québec in retirement, you apply to the QPP with Retraite Québec. 

    Expatriates who retire outside of Canada apply to the Retraite Québec if the last province they lived in was Québec; otherwise, they apply for CPP with Service Canada. 

    Sales tax

    Québec sales tax includes both the federal Goods and Services Tax (GST) and the Québec Sales Tax (QST), as opposed to the Harmonized Sales Tax (HST) that applies in some other provinces. 

    QST may apply to some goods and services that are exempt from GST, so there can be some differences versus other provinces. 

    Companies providing services or selling goods in the province of Québec may need to register for and charge QST, despite living and generally operating outside of Québec. 

    Language requirements

    The provincial government and Revenu Québec operate primarily in French, though some English options may be available. This can result in another layer of administration for some taxpayers who are not bilingual. 

    Timing rule

    Like other provinces, your province of residency is determined by where you live on December 31 of the tax year. So, even if you move to or from Québec on December 30, the final day of the calendar year is what determines your tax filing requirements. There is no proration for the year. 

    Jason Heath, CFP

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  • Letters: Protesters should celebrate a new beginning for Venezuela

    Submit your letter to the editor via this form. Read more Letters to the Editor.

    We should celebrate
    Venezuela’s new start

    Re: “Protests decry Trump’s actions” (Page A1, Jan. 5).

    How I would love to send the Bay Area protesters to South Florida, where residents are celebrating President Trump’s intervention in Venezuela. President Nicolás Maduro and his predecessor, Hugo Chávez, are responsible for “one of the most dramatic political, economic and humanitarian collapses in modern history,” according to a Miami Herald piece (“Venezuela left to grapple with wreckage Maduro leaves behind“) published Sunday.

    Letters To The Editor

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