Sneaky bracket creep income tax hike will hit taxpayers' pockets in 2020
CALGARY, AB: The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report that highlights the cost of bracket creep in Alberta.
“Premier Jason Kenney is reaching into taxpayers’ pockets in 2020 with his sneaky backdoor tax grab, known as bracket creep,” said Franco Terrazzano, Alberta Director for the CTF. “Kenney promised to balance the budget without raising taxes, but he’s breaking that promise by hiking income taxes.”
Bracket creep happens when governments don’t move tax brackets with inflation and taxpayers automatically get bumped into a higher tax bracket even though we can’t actually afford to buy more. Bracket creep was introduced in the 2019 Alberta budget.
Leading up to the 2019 provincial budget, Kenney promised to balance the books without increasing taxes.
“It will be a credible path to bring our finances back to balance without raising taxes,” said Kenney.
As a Reform Party Member of Parliament, Kenney penned a column in the Calgary Herald on Dec. 10, 1997, referring to bracket creep as a “hidden and regressive tax grab.”
The CTF report shows that bracket creep could cost a two-income household between $70 and $222 in 2020, depending on income level. When including federal income-related tax changes, all Albertans earning under $200,000 per year will be paying lower taxes in 2020.
“Voters didn’t elect Kenney to put in a sneaky backdoor tax grab, Kenney was elected to clean up the budget mess without raising taxes,” said Terrazzano. “Kenney should take his own advice and immediately cancel the hidden bracket creep tax hike.”
You can find the CTF’s 2020 New Year’s Tax Changes report here.