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These Five Government Tax Increases In 2023 Will Mean Less Money In Your Pocket

KAWARTHA LAKES-The Canadian Taxpayers Federation (CTF)released its annual New Year’s Tax Changes report recently to highlight the major tax changes in 2023.

“Tax hikes will give Canadians a hangover in the new year,” said Franco Terrazzano, Federal Director of the CTF. “Canadians can’t afford gas or groceries and the government is making things worse by hiking taxes.”

The report outlines the major federal and provincial tax changes slated for 2023.

Federal tax hikes according to CTF include:

Canada Pension Plan tax: Workers making $66,600 or more will pay an extra $255 through the CPP tax in 2023. Their employers will also pay an extra $255.

Employment Insurance tax: Workers making $61,500 or more will pay an extra $50 through the EI tax in 2023. Their employers will pay an extra $70.

In total, payroll taxes will cost a middle-class worker $4,756 in 2023. Their employer will also be forced to pay $5,157. 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.

Carbon tax: The federal carbon tax is increasing to 14 cents per litre of gas beginning April 1, 2023. The carbon tax will cost the average household between $402 and $847 in 2023, even after the rebates, according to the Parliamentary Budget Officer.

Second carbon tax: The federal government is imposing a second carbon tax through fuel regulations on July 1, 2023. The second carbon tax will increase the price of gas by up to 13 cents per litre by 2030. There are no rebates for the second carbon tax.

Alcohol escalator tax: Alcohol taxes will increase by 6.3 per cent on April 1, 2023. Taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.

“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.”

Whether or not the Canada Pension Plan or employment insurance is a “tax” is up for debate. The definition of a tax according to the dictionary is a “compulsory contribution to state revenue, leveled by the government on workers’ income and business profits, or added to the cost of some goods services and transactions.’

You can read the full CTF’s New Year’s Tax Changes report here.

 

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Pamela Vanmeer
Pamela Vanmeerhttps://www.kawartha411.ca/
Pamela VanMeer is a two time winner of the prestigious Radio Television Digital News Association (RTDNA) Award. Her investigative reports on abuse in Long Term Care Homes garnered international attention for the issue and won the Ron Laidlaw Award. She is a former reporter and anchor at CHEX News, now Global Peterborough and helped launch the New CHEX Daily, a daily half hour talk show. While at CHCH News in Hamilton she covered some of the biggest news stories of the day.

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