The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today. The report shows that Premier Dennis King’s income tax cuts will deliver meaningful relief for most taxpayers in 2024.
“Next year, most Islanders will enjoy the largest income tax cut in 15 years,” said CTF Interim Atlantic Director Jay Goldberg. “Taxpayers earning less than $110,000 are set to save up to $200 thanks to the King government’s tax cuts. However, the creation of a new top tax bracket will mean those with higher incomes will face income tax hikes.”
The report also outlines six tax hikes that Islanders will be facing at the federal level.
- Canada Pension Plan tax: Workers earning $68,500 or more will pay an extra $133 through the Canada Pension Plan payroll tax in 2024. Their employers will also pay an extra $133.
- Payroll tax: Payroll taxes will increase by up to $347 depending on income.
- Employment Insurance tax: Workers earning $63,200 or more will pay an extra $47 through the Employment Insurance payroll tax in 2024. Their employers will pay an extra $65.
- Carbon tax: The federal carbon tax is increasing on April 1, 2024. The price per tonne will increase from $65 to $80 and the cost per litre at the gas pump will rise from 14.3 cents to 17.6 cents.
- Second carbon tax: The federal government’s second carbon tax is expected to increase the price of gas through fuel regulations by up to 17 cents per litre and cost the average household between $384 and $1,157 by 2030, according to the PBO.
- Liquor escalator tax: The federal liquor escalator tax will increase liquor taxes by 4.7 per cent on April 1, 2024. 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,” Goldberg said. “Prime Minister Justin Trudeau needs to stop wasting so much money and cut taxes.”
You can read the CTF’s New Year’s Tax Changes report here.
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