OTTAWA, ON: The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight the major tax changes that will occur in 2022.
“If you’re making more than $40,000, you’ll see your federal income tax bill go up thanks to rising payroll taxes,” said Franco Terrazzano, Federal Director with the CTF. “From higher carbon taxes to rising alcohol, payroll and property taxes, there’s a raft of tax hikes coming in the New Year.”
The report outlines the major tax changes from the federal and provincial governments in 2022. Key takeaways from the report include:
The governments of Alberta, Ontario, Nova Scotia and Prince Edward Island impose a sneaky form of income taxation known as bracket creep. Bracket creep happens when governments don’t move tax brackets with inflation and inflation automatically bumps taxpayers into a higher tax bracket even though they can’t actually afford to buy more.
“A pandemic is the worst possible time to be raising taxes,” said Terrazzano. “Many Canadians lost their job, closed down their business or took a pay cut during the pandemic, and that’s why all politicians should be reversing their tax hikes.”
You can find the CTF’s 2022 New Year’s Tax Changes report here.