“This could just be the tip of the iceberg,”
BC: CTF Releases New Year’s Tax Changes for 2013
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In its annual New Year’s Tax Changes report released today, the Canadian Taxpayers Federation (CTF) slammed federal and provincial governments for raiding taxpayers at a time when they need the money to make ends meet.
“Nearly every British Columbian will be paying more in 2013, further cutting our purchasing power and ability to save,” said Jordan Bateman, CTF B.C. Director. “At a time where our economy desperately needs a boost, governments keep taking more of our money.”
For the fourth consecutive January, the B.C. government will be raising the Medical Services Premium (MSP), (the health care tax) again. For a family, the monthly rate will go up from $128 to $133 – an extra $60 a year. MSP has increased 24 per cent in just three years – adding $300 in annual taxes over that span. The tax, which the B.C. government claims is a “user fee,” is paid whether you use the system or not.
“The MSP is a grossly unfair, regressive tax,” said Bateman. “If you make $30,001 a year, or $3 million a year, you pay the same $133 MSP a month. Of course, politicians and government workers don’t care much – your taxes pick up their MSP tab, so they don’t even see a bill. MSP is for the little people who don’t work for government.”
The CTF’s annual release shows that federal taxes for Employment Insurance and the Canada Pension Plan are headed higher, while in British Columbia, payroll health taxes will hit wage earners harder.
Canadian workers earning at least $47,400 will pay $891.12 in EI premiums in 2013, up $51.50. Employers will pay $1,247.57, an increase of $71.61.
“For every Canadian job that pays $47,400 or more, you and your boss are sending $2,138.69 to the EI fund,” said CTF Federal Director Gregory Thomas. “This is all to pay for an unfair, wasteful employment insurance system you might never get to actually use.”
For anybody earning at least $51,100 Canada Pension Plan contributions are going up $49.50 to $2,356.20, with the employer’s share jumping an identical amount. The total CPP payroll tax rises to $4,712.40.
“Politicians who talk about boosting CPP benefits never talk about the $4,712.40 they’re already taking from workers to pay for the pensions we have now,” said Thomas.
Combined CPP and EI payroll taxes now total $6,851.09, an increase of $222.11.
Other tax and fee increases expected in B.C. this year include:
- TransLink raises transit fares 10 per cent Jan. 1
- Fraser Valley B.C. Transit fares rise 28 per cent Jan. 1
- Half-price Port Mann Bridge tolls end March 1 for unregistered vehicles
- B.C. Hydro raises rates 3.91 per cent April 1
- TransLink property taxes rise 1.5 per cent July 1
- Property taxes in most cities will rise July 1 by 2 to 3 per cent
- Metro Vancouver’s regional property tax increases 1.35 per cent July 1
- Golden Ears Bridge tolls rise at rate of inflation (1.4 per cent) July 15
“This could just be the tip of the iceberg,” said Bateman, noting the provincial budget doesn’t come down until February. “The B.C. budget has been rumoured to include corporate tax increases, new carbon tax and MSP increases, and a reduction in personal exemptions. Taxpayers should be on high alert leading into the May election.”