3 Income Taxation As part of Budget 2018, the Government of Canada introduced the Canada Workers Benefit (CWB) that will take affect starting on January 1, 2019. The CWB is a tax credit that supplements the earnings of low-income workers. For a single individual with no children, the structure of the CWB in 2023 is as follows. . No credit for earnings less than or equal to $3,000 . A 27% credit on each dollar of income earned over $3,000 up to a maximum of $1,428 • The maximum credit is reduced by 15% for each dollar eared above $23.105
3 Income Taxation As part of Budget 2018, the Government of Canada introduced the Canada Workers Benefit (CWB) that will take affect starting on January 1, 2019. The CWB is a tax credit that supplements the earnings of low-income workers. For a single individual with no children, the structure of the CWB in 2023 is as follows. . No credit for earnings less than or equal to $3,000 . A 27% credit on each dollar of income earned over $3,000 up to a maximum of $1,428 • The maximum credit is reduced by 15% for each dollar eared above $23.105
Micro Economics For Today
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Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 20SQ
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Transcribed Image Text:3 Income Taxation
As part of Budget 2018, the Government of Canada introduced the Canada Workers
Benefit (CWB) that will take affect starting on January 1, 2019. The CWB is a tax
credit that supplements the earnings of low-income workers. For a single individual with
no children, the structure of the CWB in 2023 is as follows.
• No credit for earnings less than or equal to $3,000
. A 27% credit on each dollar of income earned over $3,000 up to a maximum of
$1,428
. The maximum credit is reduced by 15% for each dollar eared above $23,495
Based on these parameters, please answer the following.
Transcribed Image Text:(d) In one paragraph or less, explain how the CWB affects the incentive to work for (i)
individuals with earnings below B₁, (ii) individuals with earnings between B₁ and B₂,
(iii) individuals with earnings between B₂ and B3, and (iv) individuals with earnings
above B3.
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