Taxes are Growing Faster Than The Necessities of Life

A recent study has shown that taxes have grown faster than the other expenditures for the average Canadian family to become their largest expense. Additionally, the cost of taxes have grown faster than their income and also inflation.

Data Source:  Frasier Institute, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2017 edition.

Benefits of Canoe Corporate Class

1. Tax-efficient Growth
The less taxes you pay, means more money remains invested to keep compounding and growing.

Source: Caone Financial. Hypothetical $10,000 in Corporate Class vs Mutual Fund Trust in balance porfolio comprised of 60% Equities and 40% Fixed Incomes. Assumes highest marginal tax rate of Ontario of 53.53% Marginal Tax Rate on Income, 26.77% Marginal Tax Rate for Capital Gains.

2. Tax-efficient Income
Different forms of income have different tax rates. Canoe Corporate Class aims to distribute the more tax efficient forms of income. Additionally, Canoe Corporate Class Series T options for income distributes Return of Capital. This form of income is tax deferred, therefore no taxes will be paid on the income you receive until the capital is fully depleted.

Source: EY 2018 Personal Tax Calculator. Assumes Ontario marginal tax rate for income of someone earning $75,000 per year, which is a marginal tax rate of 29.65% on income paying investments.

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