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Mark Carney: The Economist Who Took on Trump and Won

  Mark Carney, a former central banker, has emerged as Canada’s prime minister following a dramatic election that reshaped the political landscape. His victory was fueled by a surge of nationalism in response to U.S. President Donald Trump’s aggressive rhetoric and trade policies. Trump’s threats to annex Canada as the “51st state” and impose steep tariffs on Canadian goods galvanized voters, turning Carney’s Liberal Party from underdogs to champions of Canadian sovereignty. Carney’s campaign centered on defending Canada’s independence and rebuilding its economy to reduce reliance on the United States. His experience as governor of the Bank of Canada and the Bank of England lent credibility to his promises of economic resilience. In his victory speech, Carney declared, “President Trump is trying to break us so that America can own us. That will never, ever happen”. The election results marked a stunning comeback for the Liberals, who were initially projected to lose to the oppositi...
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Understanding the OAS Clawback: Impact and Costs

 

The Old Age Security (OAS) clawback is a critical aspect of Canada’s retirement system. Let’s delve into the details:

What Is the OAS Clawback?

  • Threshold: Seniors who receive OAS payments may need to pay back a portion if their annual income exceeds a certain amount. This threshold is indexed annually and currently stands at $86,912 for 2023 (estimated to be $90,997 for 2024).

  • 15% Tax: For every taxable dollar earned above this threshold, a 15% clawback tax is applied to the OAS benefit. Essentially, seniors still receive OAS income, but it’s reduced by this withholding tax.

Who Is Affected?

  • High Earners: Previously high-income earners applying for OAS may face immediate clawbacks based on prior tax returns. The timing of pension receipt determines which year’s income is considered.

  • Specific Income Levels:

    • 65-74 Years Old: If your income exceeds $142,609, you won’t receive OAS.
    • 75 and Older: For those over 75, the threshold is $148,179.

Costs and Considerations

  • Annualized Growth: Canada’s economy surged in Q4 2023, but the OAS clawback remains a concern for retirees. Balancing growth and income thresholds is crucial.

  • Minimizing Clawback: Strategies exist to minimize the clawback. For instance, managing investment income and optimizing retirement accounts can help.

Remember, while the OAS clawback affects many, it’s essential to consult a professional for personalized advice. 


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