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Canada Budget 2025: Key Tax Shifts That Could Impact Your Wallet

The federal government’s 2025 budget, tabled by Prime Minister Mark Carney, may not have been heavy on sweeping tax reforms, but it did deliver several targeted changes that Canadians should pay attention to. While personal income tax rates remain unchanged, the budget introduces new credits and adjustments designed to address fairness, affordability, and economic growth. Here are the five most important tax changes: 1. New Top-Up Tax Credit The budget introduces a top-up tax credit to address an unintended consequence of lowering the lowest personal income tax bracket to 14.5%. Because non-refundable tax credits are tied to this rate, their value had dropped. The new credit ensures taxpayers don’t lose out on benefits when their credits exceed the first bracket threshold. 2. No Change to Personal Tax Rates Despite speculation, individual tax brackets remain the same for 2025. This provides stability for households, though it also means no additional relief for middle-income ear...
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Inflation Jitters Rattle Markets: Dow Plunges 500 Points

U.S. stock markets were gripped by turbulence today as investors grappled with a hotter-than-expected January inflation report. The data revealed that prices cooled at a slower pace than anticipated, sending shockwaves through Wall Street.

Here are the Numbers

  • The Dow Jones Industrial Average (DJI) plummeted 1.4%, shedding approximately 500 points.
  • The S&P 500 (GSPC) followed suit, experiencing a similar drop.
  • The tech-heavy Nasdaq Composite (IXIC) led the day’s sharp declines, closing down 1.8%.

Impact of Inflation

  • The Consumer Price Index (CPI) release for January showed “core” prices increased by 0.4%, marking the largest monthly gain since April 2023.
  • On a headline basis, prices surged 3.1%, surpassing economist estimates but decelerating from December’s 3.4% annual gain.

Bitcoin’s Comeback

  • Meanwhile, the price of Bitcoin (BTC-USD) hovered below $50,000 after breaching this closely watched level for the first time since 2021.

Market Fallout

  • It was the worst day for both the Nasdaq and S&P 500 since January 31, while the Dow experienced its most significant decline since March 2022.
  • Small caps also suffered, with the Russell 2000 (RUT) closing at its lowest level since June 2022.

As investors recalibrate their expectations, uncertainty looms over the path forward. Will the Federal Reserve’s next move address these inflationary pressures? Only time will tell.


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