Happy New Year! Upcoming tax increases will add to the financial burden of people living on the Prairies
The Canadian Taxpayers Federation (CTF), in its annual New Year’s Tax Changes report, is warning residents in the Prairie provinces that they’ll be feeling a financial pinch in 2024 due to various tax increases. Franco Terrazzano, the CTF’s Federal Director, worries these changes will make the already high cost of living even harder for Canadians.
At the federal level:
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The government is upping the mandatory Canada Pension Plan (CPP) and Employment Insurance (EI) contributions in 2024. These payroll tax hikes mean workers will shell out an extra $347 next year. If you earn $73,200 or more, federal payroll taxes (CPP and EI) will set you back $5,104 in 2024, with employers chipping in $5,524.
The federal carbon tax is climbing to over 17 cents per litre for gas and 15 cents per cubic meter for natural gas on April 1, 2024. Even after rebates, this carbon tax is expected to cost the average household somewhere between $377 and $911 in 2024-25, according to the Parliamentary Budget Officer’s calculations.
On April 1, 2024, alcohol taxes are jumping another 4.7 percent. These taxes already make up a big chunk of alcohol prices and are projected to set Canadians back almost $100 million next year.
CTF’s report also sheds light on specific tax changes in the Prairie provinces:
On January 1, 2024, the Manitoba provincial government is hitting the pause button on the 14-cent-per-liter provincial fuel tax. Families can expect to save up to $250 over the next six months. When the federal government’s carbon tax increases on April 1, 2024, it’ll cost the average Manitoba household around $502 in 2024, even after accounting for rebates.
In contrast to other provinces, the Saskatchewan government is raising taxes for job creators. After dropping the small business tax rate to zero percent in 2020, it was bumped back up to one percent in July 2023, with plans to hit two percent in 2024.
The Alberta government is set to partially reinstate the suspended provincial fuel tax, bringing it up to nine cents per litre of gasoline and diesel. This move comes after Premier Danielle Smith fully suspended the fuel tax for a year to ease affordability problems for Albertans.
| Troy Media
To interview Franco Terrazzano, click here.
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