Canadian Taxpayers Federation releases tax changes for 2013

Posted Jan 3, 2013 By EMC News

EMC News - In its annual New Year's Tax Changes report released last week, 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.

"Every Canadian will be paying more in 2013 thanks to rising CPP and EI premiums," said CTF federal director Gregory Thomas. "EI and CPP contributions are taxes, pure and simple. Wage earners have no choice whether to pay them or not."

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. Provincial governments in Nova Scotia, PEI and Manitoba will use inflation to push wage earners into higher tax brackets, while Ontario bumps its top tax rate for high-income earners. Quebec is launching the broadest assault, adding an extra income tax bracket, hiking its health tax for high income earners, boosting sin taxes on liquor and tobacco, and raising contribution rates for the province's pension plan and its parental benefits plan.

"Each and every one of these tax grabs cuts Canadians' purchasing power," continued Thomas.

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 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.

For full details on payroll tax changes in 2013, visit taxpayer.com/sites/default/files/Payroll.Taxes_.Backgrounder.2013.pdf.

The CTF is Canada's largest taxpayer advocacy organization with over 79,000 supporters. Established in 1990, it is a federally incorporated not-for-profit, non-partisan, organization. The CTF is dedicated to lower taxes, less waste and more accountable government.