Charlottetown, PE: The Canadian Taxpayers Federation is praising Prince Edward Island Premier Dennis King for announcing one-time tax-free payments to Islanders to help deal with the rising cost of inflation.

“This is great news from the King government,” said CTF Interim Atlantic Director Jay Goldberg. “Islanders desperately need relief from inflation and King is stepping up to the plate.”

King announced that PEI residents making less than $100,000 will receive a $500 tax-free payment, while those earning between $100,000 and $125,000 will receive a pro-rated payment.

While the Canadian Taxpayers Federation is applauding the King government’s move, the CTF is also calling for permanent relief for taxpayers through ending bracket creep. 

Bracket creep occurs when inflation pushes Islanders into higher income tax brackets because the government fails to index tax brackets to inflation. In practice, this leads to tax hikes on Islanders each and every year. Only Prince Edward Island and Nova Scotia fail to index their income tax rates to inflation.

“This one-time payment is great news, but Islanders need more relief long-term,” said Goldberg. “It’s time for King to put an end to bracket creep, once and for all.”