Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Blended Rate Tax Changes!

2 May 2024 · 1 min

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Richard Canfield explains how blended tax rates work when different portions of income are taxed at different inclusion percentages. The example shows a shift from a 50% inclusion rate to a new 67% inclusion rate above a threshold of 250, which changes the overall blended tax rate on the gain.

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Just as a very quick walkthrough, what everyone will see is on the side over here is the gain amount. Just any schedule, just to look at that. The second thing you will see is there's a blended rate and existing rate. So this is what the general tax rate, if everything still remained at the 50% inclusion, what that would look like. And then here's that new blended rate, assuming a very particular marginal tax bracket, and you'll see where all of that starts showing a difference in what that blended tax rate is. So. So again, it's oversimplified. The way that it should be looked at is 250 goes considered as taxed at 50% inclusion with the marginal tax rate, then anything above that is including the 67% inclusion, which then makes a blended rate.