Nearly every working Canadian poised to pay more income and payroll taxes
OTTAWA — Most working Canadians will pay more both in income and payroll taxes in 2011, with Ontarians, British Columbians and Nova Scotians the hardest hit, the Canadian Taxpayers Federation says in a study released Tuesday.
The nationwide hikes are largely due to an increase in employment insurance and the Canadian Pension Plan, said Derek Fildebrandt, the federation's national research director.
"EI and CPP are the common villains," he said. "Everybody across the country is going to suffer from the government's decision to create all these new programs they want to fund through the EI fund."
The federation's annual new year tax change calculations, which were based on several income and family scenarios adjusted to inflation, found there will be a national average two per cent increase in 2011 over 2010.
Traditionally, the federation's calculations have predicted some winners and some losers, depending on individuals' income level, family scenarios and the province in which they live, Fildebrandt said. But this year, that trend has been bucked.
"This year, everyone loses," Fildebrandt said. "Although, some more than others.
"In every province, family and income scenario, our research finds that the government's take from inflation-adjusted incomes will increase, in some cases, substantially."
Federal payroll tax increases, effective Jan. 1, will affect almost every Canadian worker — but those living in provinces with rates of inflation above the national average will see even bigger increases.
Ontario, for example, will see the largest increase, with an average 4.3 per cent increase seen in the scenarios the federation analyzed. A single-income family in Ontario earning $45,000 in 2010 looks poised for a 5.1 per cent increase on the taxable portion of the income — or $389. A double-income family earning $80,000 will be paying 3.5 per cent more on the taxable portion of that income — or $590 — the calculations show.
British Columbians appear set to experience the second-largest hike in the country, with an average increase of 2.9 per cent.
The average increase in Nova Scotia will be 2.8 per cent, according to the study. A double-income family earning $60,000 in that province, will see a 2.9 per cent hike on the taxable amount they owe, meaning they will pay $345 more.
"The federal government likes to talk about stimulus a lot," Fildebrandt said. "But normally, stimulus is just code word for borrowing money and spending it on road signs and hockey arenas . . . The best and only kind of stimulus that works is tax cuts."
OTTAWA — Most working Canadians will pay more both in income and payroll taxes in 2011, with Ontarians, British Columbians and Nova Scotians the hardest hit, the Canadian Taxpayers Federation says in a study released Tuesday.
The nationwide hikes are largely due to an increase in employment insurance and the Canadian Pension Plan, said Derek Fildebrandt, the federation's national research director.
"EI and CPP are the common villains," he said. "Everybody across the country is going to suffer from the government's decision to create all these new programs they want to fund through the EI fund."
The federation's annual new year tax change calculations, which were based on several income and family scenarios adjusted to inflation, found there will be a national average two per cent increase in 2011 over 2010.
Traditionally, the federation's calculations have predicted some winners and some losers, depending on individuals' income level, family scenarios and the province in which they live, Fildebrandt said. But this year, that trend has been bucked.
"This year, everyone loses," Fildebrandt said. "Although, some more than others.
"In every province, family and income scenario, our research finds that the government's take from inflation-adjusted incomes will increase, in some cases, substantially."
Federal payroll tax increases, effective Jan. 1, will affect almost every Canadian worker — but those living in provinces with rates of inflation above the national average will see even bigger increases.
Ontario, for example, will see the largest increase, with an average 4.3 per cent increase seen in the scenarios the federation analyzed. A single-income family in Ontario earning $45,000 in 2010 looks poised for a 5.1 per cent increase on the taxable portion of the income — or $389. A double-income family earning $80,000 will be paying 3.5 per cent more on the taxable portion of that income — or $590 — the calculations show.
British Columbians appear set to experience the second-largest hike in the country, with an average increase of 2.9 per cent.
The average increase in Nova Scotia will be 2.8 per cent, according to the study. A double-income family earning $60,000 in that province, will see a 2.9 per cent hike on the taxable amount they owe, meaning they will pay $345 more.
"The federal government likes to talk about stimulus a lot," Fildebrandt said. "But normally, stimulus is just code word for borrowing money and spending it on road signs and hockey arenas . . . The best and only kind of stimulus that works is tax cuts."
