The Y2K bug turned out to be a bust, but taxpayers will be saddened to learn that another problem - bracket creep - is still with us. This silent tax, courtesy of former Tory finance minister Michael Wilson and perpetuated by Paul Martin is, unfortunately, Y2K compliant.

Bracket creep refers to the effect (since 1986) where income tax brackets are only partially indexed to inflation. If inflation rises above 3%, the excess amount becomes the indexing factor which increases the basic personal exemption (BPE) and the tax brackets for the next year.

But inflation has not exceeded 3% since 1993; tax brackets haven't moved. So federal and provincial governments have reaped a windfall of tax revenues. Taxes have increased every year but politicians didn't a vote in their respective federal or provincial legislatures for approval. It's infuriating and undemocratic! Take a look at its effects:

10,200,000,000 - That's 10.2 billion, as in dollars. This is the amount of taxes that Ottawa now collects due to the 14-year effects of bracket creep. The feds will collect $74.8 billion in personal income taxes for fiscal year 1999/2000; a full 13.6% of this is due to bracket creep.

2,500,000,000 - As in $2.5 billion. This is the amount that nine provinces (excluding Quebec) collected in extra taxes due to the cumulative effects of bracket creep in 1999. Even taxpayer friendly governments (read: Alberta and Ontario) continue to reap a windfall.

3,500,000 - The number of taxpayers that have been pulled onto the tax rolls or into higher tax brackets due to bracket creep. The Caledon Institute estimates that over 1 million Canadians have been sucked onto the tax rolls (read: very poor people) due to bracket creep. And 1.9 million have moved from the lowest tax bracket (17%) to the middle bracket (26%). Another 600,000 taxpayers have been pushed into the highest tax bracket (from 26% to 29%).

840,000 - In December 1997, the House of Commons Finance Committee stated that 840,000 low-income Canadian families, not individuals, but families had been pushed onto the tax rolls between 1986 and 1995 due to bracket creep.

85,000 - This is the number of taxpayers who were sucked back onto the tax rolls (from paying no taxes to being taxed at 17%) on January 1, 2000 due to bracket creep.8,155 - Ken Battle of the Caledon Institute rightly points out that the BPE should now be $8,155 if the tax system had remained fully indexed for inflation. Currently the BPE is $7,131.

18 - The real dollar value of at least 18 separate credits and deductions has been eroded due to bracket creep. Apart from the BPE, everything from the pension income credit to the disability credit right down to the GST credit has been affected.

14 - We've suffered under 14-years of partial de-indexation. Seven years of this abuse were courtesy of the Mulroney Tories, but the other seven years is courtesy of Jean Chretien and Paul Martin. The Liberals have been equal opportunity tax hikers. And in actual dollar terms, they've soaked us for far more than the Tories could ever dream of.

5 and 1 - It would take five (5) minutes of your time to send one (1) letter, fax or e-mail to Paul Martin demanding an end to this abuse.

(House of Commons, Ottawa ON, K1A 0A6 or 613-992-4291[fax] or [email protected])

Simply ask for full indexation of the tax system in the 2000 budget. On page 81 of the November economic statement, Mr. Martin said he will index program spending to inflation. Isn't it only fair that he do the same for taxpayers and their tax brackets Let's end this taxpayer abuse once and for all.