According to the Canadian Taxpayers Federation, Canadians are already struggling to afford basic necessities like gas and groceries, and the government is making their financial burden even heavier by increasing taxes.
The Canadian Taxpayers Federation (CTF) has published its annual report on tax changes for the upcoming year, highlighting the significant federal and provincial tax changes that will take effect in 2023. The CTF states that several tax hikes are coming in 2023, including increases to the Canada Pension Plan tax, Employment Insurance tax, and carbon tax. Payroll taxes will cost a middle-class worker $4,756 and their employer $5,157 in 2023. The basic personal amount for income taxes is increasing, but due to the increase in payroll taxes, anyone earning $40,000 or more in 2023 will pay higher federal income-based taxes than in the previous year. The carbon tax will increase to 14 cents per litre of gas starting April 1st and is estimated to cost the average household between $402 and $847 in 2023, even after rebates. The federal government is also introducing a second carbon tax through fuel regulations on July 1st, which will increase the price of gas by up to 13 cents per litre by 2030, with no rebates available. Additionally, alcohol taxes will increase by 6.3% on April 1st, with taxes already making up a significant portion of the price of various alcoholic beverages.