Canadian taxpayers, get ready for the new year's taxes.
According to an article by Toronto Star columnist Franco Terrazzano, in the new year, Canadian Prime Minister Justin Trudeau will further hollow out the pockets of Canadians by raising payroll, carbon and alcohol taxes.
Payroll taxes
Canadians will pay higher payroll taxes due to mandatory increases in Canada Pension Plan (CPP) and Employment Insurance (EI) contributions.
If your annual income is $73,200 or more, then in 2024, you will pay an additional $347 in payroll tax, for a total tax of $5,104.
In the new year, your employer will also be forced to pay $5,524.
The federal government is imposing a new tax called "CPP2". The original CPP imposed a 6% tax on the income of migrant workers, with a maximum income cap of $68,500. The new CPP2 raises this threshold and imposes a 4% tax on additional income, bringing the taxable income cap to $73,200.
Carbon tax
Trudeau likes to claim that he is "trying to make life more affordable," the article said. But he also raised a tax that directly makes the cost of living higher: the carbon tax.
In our vast, cold country, a carbon tax raises the price of gasoline, diesel, and home heating fuel, and also makes groceries more expensive because it increases the costs for farmers who grow food and truck drivers who deliver it.
According to congressional budget officials, the carbon tax will cost the average household up to $911 by 2024, even after the carbon tax rebate.
Digital Services Tax
The federal government also plans to impose a digital services tax. The new tax targets social media platforms, companies that operate digital marketplaces, and businesses that generate revenue through online advertising, such as Amazon, Google, Facebook, Uber and Airbnb.
Consumers should expect that they will pay higher prices due to the levy. In France, Amazon has increased commissions by the same amount to French suppliers because of the 3% digital services tax.
Alcohol tax
If all these tax increases cause you to take a sip of wine, that's understandable.
But when you pick up a case of Blue, a bottle of Pinot, or a glass of rum, Trudeau will charge you an additional 4.7% tax by raising the alcohol tax.
Next year, the federal alcohol tax will be raised, which is expected to cost taxpayers nearly $100 million.
In Canada, taxes already account for half of the price of beer, 65% of the price of wine, and more than three-quarters of the price of spirits.
Just as Trudeau is raising taxes, many other countries are offering relief, the article said.
The Canadian Taxpayers' Federation identified 51 countries whose governments have provided tax relief, or eased the burden of inflation, during the pandemic. These governments include more than half of the G7 and G20 countries, as well as two-thirds of the OECD countries.
The country's provincial governments, regardless of political affiliation, are also helping.
Manitoba's NDP government will suspend fuel taxes in the new year. By June 2024, the Ontario Progressive Conservative government's gas tax relief will save families with minivans and pickups about $185. The Liberal Party in Newfoundland and Labrador has reduced the gas tax by 8 cents per litre.
The Alberta government has pledged to cut personal income taxes and passed legislation requiring the government to vote before increasing income or business taxes. Manitoba's income tax relief can save each taxpayer more than $2,000. The province of Quebec has reduced its tax rates on the first two tax bands of income tax. New Brunswick has implemented significant income tax breaks in 2023. The PEI income tax relief will save middle-class taxpayers $200.
The article concludes by pointing out that the fastest, easiest, and easiest way for Trudeau to make all areas of life more affordable is to ditch his high tax policies and leave more money for Canadians.