Bracket creep a sneaky tax hike on Nova Scotians in 2019
- Taxpayers Federation releases 2019 New Year’s Tax Changes report
- Bracket creep remains a sneaky tax grab on Nova Scotians
- Changes to CPP premiums will cost Nova Scotians almost $100 this year
HALIFAX, NS: Today the Canadian Taxpayers Federation (CTF) released its annual New Year’s Tax Changes report that highlights bracket creep in Nova Scotia and the increase to Canadian Pension Plan rates.
Bracket creep, which pushes individuals into higher tax brackets simply due to inflation, continues to cost taxpayers across all income groups in Nova Scotia.
“Through bracket creep, the Nova Scotia government takes more of people’s money, even when their purchasing power isn’t growing,” said CTF Atlantic Director Paige MacPherson. “We call on the Nova Scotia government to index its tax brackets in 2019 and stop this sneaky tax grab.”
The CTF report shows that a two-income Nova Scotia family making $60,000 per year will have to pay an additional $124 this year thanks to bracket creep. A single-income individual making $60,000 per year will pay an extra $84 as a result.
“Most other provinces now index their tax brackets,” said MacPherson. “The Nova Scotia government should treat taxpayers with fairness and get rid of bracket creep too.”
Nova Scotia families will also see the cost of gas increase, according to the provincial government, as a result of its cap-and-trade carbon tax coming into effect on Jan. 1.
Federal tax changes will hit Nova Scotians’ wallets too. The increase to Canada Pension Plan rates will cost average Canadians $98 this year and, when the increases are fully implemented in five years, it’ll total $550 every year. Even after CPP income tax deductions, an average individual making $60,000 will still face a net loss of $380 per year. On the plus side, low-income Canadians will save money as a result of the new Canada Workers Benefit.
CTF calculations for the tax changes that will be occurring on Jan. 1 can be found here: https://www.taxpayer.com/media/NYTC-2019-EN.pdf