The Canadian Taxpayers Federation is warning residents to brace themselves.
The federation claims the Canadian government will dig deeper into the pockets of Canadians in 2024. It claims we'll see higher payroll taxes and Employment Insurance contributions, a hike in carbon taxes, and increased alcohol taxes.
The taxpayers federation pointed to numbers from the Parliamentary Budget Officer that suggest the carbon tax will cost the average family up to $911 in 2024 even after the rebates. It says the Carbon tax will push up the price of gasoline, diesel and home heating fuels, as well grocery bills, due to increased costs to produce and ship food.
The association says Canadians will be facing rising Canada Pension Plan and Employment Insurance contributions. Anyone who earns $73,200 or more, will have to fork over an extra $347 in payroll taxes in 2024, for a total tax bill of $5,104. Employers will also be forced to fork over $5,524 in the new year. The federal government is imposing a new tax, which it calls “CPP2”
"The original CPP taxes your income at six per cent up to $68,500," according to Federation Federal Director Franco Terrazzano. "The new CPP2 expands that threshold and taxes additional income at four per cent up to $73,200."
The federation warned consumers to expect to pay higher prices if a proposed digital services tax is implemented, targeting social media platforms, companies operating digital marketplaces, and businesses earning revenue from online advertising, such as Amazon, Google, Facebook, Uber, and Airbnb.
"When faced with the three per cent DST in France, Amazon increased its commission charge to French vendors by the same amount," explained Terrazzano.
However, Canadians trying to forget their financial pain will not find relief by pouring themselves a cold one. Terrazzano said the Trudeau government will be taking an extra 4.7 per cent from alcohol tax hikes. In fact, the federal alcohol tax hike is expected to generate an additional $100 million in revenue
Terrazzano said that while Trudeau hikes taxes, many other countries are providing relief. He added that 51 national governments provided tax relief during the pandemic or to ease the burdens of inflation.
"Those governments include more than half of the G7 and G20 countries and two-thirds of the countries in the Organisation for Economic Co-operation and Development," said Terrazzano.
