Tax season is in full swing and this year the Canadian Taxpayers Federation (CCF) has seen an increase in income taxes.
In a report released in December 2023, the FCC found that the majority of Canadians will have to pay more income taxes.
This increase ranges from an additional $9 for annual income less than or equal to $30,000 to $347 for annual income of $80,000 or more.
“In general, it probably won't affect you too much because it's not like they're raising taxes to an insane extent. However, given Canada's high level of debt, everyone's budgets are already stretched,” personal finance expert Barry Choi told Global News, adding that “every penny counts these days.”
While the government of Canada is increasing taxes in what may seem minimal to some, the Canadian Taxpayers Federation has identified 51 national governments that have provided tax relief during the pandemic or in an effort to ease the burden of inflation. These governments include more than half of the G7 and G20 countries and two-thirds of the Organization for Economic Co-operation and Development (OECD) countries. Canada is a member of all three organizations.
Changes highlighted in the FCC's annual report also include higher alcohol and carbon taxes, increases in maximum employment insurance premiums and a second Canada Pension Plan (CPP) increase imposed by the federal government.