VICTORIA: Canada's taxpayers have paid an extra $90 billion in personal income taxes since 1989, all due to "bracket creep" taxes, according to The ABC's of Bracket Creep: 2000, the study released today by the Canadian Taxpayers Federation.

"British Columbians paid an extra $13.2 billion into federal and provincial coffers since 1989 due to this stealth tax hit on their wallets," noted British Columbia director Mark Milke. "In 1999, a $40,000 income paid $1,324 more than they would have had tax brackets been properly indexed for inflation since 1989. This year, barring any tax relief, that amount will increase to $1,345."

Bracket creep is a federal tax policy that allows tax brackets, exemptions, and credits to lag behind inflation. It works by over-exposing inflation-driven incomes to an income tax system that is only partially indexed to inflation. The result is a steady increase in the amount of income taxes netted by Ottawa and the provinces.

Milke noted that in 1999, the federal government took in an extra $10.7 billion because of the cumulative effect of this policy while British Columbia's treasury netted an extra $532 million.

"When provincial finance ministers demand more taxpayer money from Ottawa via transfer payments, taxpayers should note that BC's tax revenues have already been boosted thanks to bracket creep taxation, jointly imposed by Ottawa and the provinces" said Milke.

"Ottawa and the provinces have been equal-opportunity stealth tax hikers," said Milke. "There was no yearly vote in Parliament or the BC Legislature, no record of a tax hike in annual budgets, just an automatic tax increase every year for over a decade," said Milke. "The CTF renews its call for an end to bracket creep in the upcoming federal budget."