Rising living costs, record breaking inflation and a spike in interest rates, Canadians have noticeably watched their purchasing power decrease as they buy less stuff with more money.
The Canadian Taxpayers Federation (CTF) is ringing alarm bells over the incoming 2023 federal tax hikes about to attack the incomes of Canadians.
According to the New Year’s Tax Changes report released by the Canadian Taxpayers Federation (CTF), the tax hikes will include a carbon tax increase, an alcohol escalator tax, hikes to Employment Insurance and more
“Tax hikes will give Canadians a hangover in the new year,” said CTF federal director Franco Terrazzano.
“Canadians can’t afford gas or groceries and the government is making things worse by hiking taxes.”
Employer contributions to the Canada Pension Plan will increase by up to $225, while employee and employer contributions to Employment Insurance will increase by around $50 and $70, respectively.
Beginning next year, Canadians can anticipate paying payroll taxes of up to $4,756 annually on average.
“The federal government is raising the basic personal amount for income taxes. However, because of the payroll tax hikes, anyone making $40,000 or more in 2023 will pay higher federal income-based taxes than in 2022,” the CTF explained in a press release.
Canadians will be smashed with two carbon taxes. On April 1, 2023 the federal carbon tax will be hiked to 14 cents per litre of gas which will cost households up to $847 in 2023 even after teh rebates are taken in to account.
Beginning on July 1, 2023 a second carbon tax, the Liberal fuel regulation will come into effect costing up to 13 cents per litre by 2030.
“Other countries are cutting taxes, but Ottawa is sticking Canadians with higher bills,” said Terrazzano.
“Prime Minister Justin Trudeau needs to stop wasting so much money and cut taxes.”
If you’re one to get your drink on, the tax on alcohol will be increased to 6.3% in April 2023.
Conservative leader Pierre Poilievre slammed the Liberal government for the alcohol tax and other increases while on a tour to eastern Canada.
“So, if the carbon tax is enough to drive you to drink, well you’ll pay more tax when you do that too,” said Poilievre while at a local brewery.
For British Columbians they are also being hit with the provinces annual tax increases.