PwC Federal Budget Instant Reaction: Personal tax breaks but no rainy day funds

    OTTAWA, Jan. 27 /CNW/ - PricewaterhouseCoopers (PwC) Canada tax
specialists commented today:
    Lower income earners, parents and seniors got some relief today with
Budget 2009 including:

    -   An increase in the basic personal amount that all Canadians can earn
        without paying federal income tax.
    -   A raise to the upper limit of the two lowest personal income tax
        brackets by 7.5 %
    -   An Increase to the amount that low- and middle-income families can
        earn before their federal child benefits are phased out.
    -   An investment of $580 million to effectively double the tax relief
        provided by the Working Income Tax Benefit.
    -   A tax savings of up to $150 a year for seniors by increasing the Age
        Credit amount by $1,000.

    However, missing from the Budget was a temporary relaxation of RRSP
withdrawal rules as proposed by PwC in their pre-Budget submission to the
Minister of Finance allowing for Canadians to access a "rainy day" fund for
emergency measures to manage through the downturn. Full details on PwC's
submission can be found at
    A PwC Budget Flash with additional Budget highlights will be issued later
today followed by a detailed Budget Memo. For more information and detailed
commentary on the Budget please contact, Carolyn Forest,, 416-814-5730 or visit

    PricewaterhouseCoopers ( provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
( and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.

For further information:

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730,

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