Five federal tax hikes in 2023: New Year’s Tax Changes report

Author: Franco Terrazzano 2022/12/19

OTTAWA, ON: The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight the major tax changes in 2023.

“Tax hikes will give Canadians a hangover in the new year,” said Franco Terrazzano, Federal Director of the CTF. “Canadians can’t afford gas or groceries and the government is making things worse by hiking taxes.”

The report outlines the major federal and provincial tax changes slated for 2023. Federal tax hikes include:

Canada Pension Plan tax: Workers making $66,600 or more will pay an extra $255 through the CPP tax in 2023. Their employers will also pay an extra $255.

Employment Insurance tax: Workers making $61,500 or more will pay an extra $50 through the EI tax in 2023. Their employers will pay an extra $70.

In total, payroll taxes will cost a middle-class worker $4,756 in 2023. Their employer will also be forced to pay $5,157. The federal government is raising the basic personal amount for income taxes. However, because of the payroll tax hikes, anyone making $40,000 or more in 2023 will pay higher federal income-based taxes than in 2022.

Carbon tax: The federal carbon tax is increasing to 14 cents per litre of gas beginning April 1, 2023. The carbon tax will cost the average household between $402 and $847 in 2023, even after the rebates, according to the Parliamentary Budget Officer.

Second carbon tax: The federal government is imposing a second carbon tax through fuel regulations on July 1, 2023. The second carbon tax will increase the price of gas by up to 13 cents per litre by 2030. There are no rebates for the second carbon tax.

Alcohol escalator tax: Alcohol taxes will increase by 6.3 per cent on April 1, 2023. Taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.

“Other countries are cutting taxes, but Ottawa is sticking Canadians with higher bills,” said Terrazzano. “Prime Minister Justin Trudeau needs to stop wasting so much money and cut taxes.”

You can read the CTF’s New Year’s Tax Changes report here.

A Note for our Readers:

As you may know, we're working hard to stop Prime Minister Trudeau's attempt to add a 2nd carbon tax upon Canadian taxpayers. If you are against this tax, would you take a moment today to read and consider signing the petition below?

When you do, your name will be added to the growing list of tens of thousands across our country who want to tell the government that we are opposed to these new taxes. Please take a moment to read the petition below and consider signing it today.

To Prime Minister Justin Trudeau:

The federal government is introducing new fuel standard regulations to require industry to reduce the carbon content of fossil fuels. If industry can’t meet the standard, they’ll have to pay Trudeau's second carbon tax. This tax will ultimately hit already struggling families and businesses.

It’s bad enough that taxpayers are already paying for one carbon tax. Canadians certainly can’t afford a second carbon tax.

We, the undersigned, call on Prime Minister Justin Trudeau to scrap plans for a second carbon tax.