Study warns Canadians that higher income, payroll taxes will come in 2011
Ottawa, Ontario, Canada (AHN) – Many Canadian workers would begin 2011 paying higher personal income and payroll taxes, the Canadian Taxpayers Federation warned Tuesday.
For personal income taxes, the federation said all the 16 income and family groups in each Canadian province would pay 2 percent higher taxes.
For business payroll taxes, because of hikes in payroll tax thresholds, workers earning more than $44,200 a year would shell out $76 more, while their employers would have to pay $110 more.
The federation blamed the increase to the federal government’s hike in the Canadian Pension Plan premiums and the creation of new, non-insurance based programs funded by Employment Insurance premiums, which caused the program to create a deficit to be covered by higher rates.
The federation pointed out that income tax and payroll tax increases in previous years evened out because some groups enjoyed cuts, while others had to pay more. In 2011, all income levels, family scenarios and geographical location would be affected negatively.
Worst hit will be residents of Ontario, British Columbia and Nova Scotia because inflation rates in these provinces are higher than national average. As a consequence, Ontario residents would be hit with a 4.3 percent increase, BC residents 2.9 percent and Nova Scotians 2.8 percent.
View full post on Labor Stories
