The Trudeau government’s performance is easier to track—at least at first glance—in the realm of taxation. In the March budget, the government made good on its promise to cut the income tax rate to 20.5 per cent from 22 per cent on earnings between $45,282 and $90,563. It also raised taxes on income in excess of $200,000 to 33 per cent, from 29 per cent. The change was a key part of Trudeau’s promise to offer “real help to Canada’s middle class and all those working hard to join it.”
Wait a minute.
With the government estimating more than a million Canadians don’t have enough money for retirement, Trudeau is also claiming victory after B.C. last week agreed to ratify a deal signed earlier this year to expand the Canada Pension Plan.
So, the federal government cuts taxes for the middle class and then increases our CPP contributions at the same time. Net result?
Charles Lammam, the director of fiscal studies at the Fraser Institute, says his calculations show that those middle-income Canadians set to receive a tax break from the federal government will actually see the overall amount of tax they pay increase as a result of additional CPP contributions made by themselves and their employer—even after they deduct a portion of those payments on their income taxes. “They’re not getting that tax break they were promised,” says Lammam, who also takes issue with the wisdom of raising taxes on wealthier Canadians who already face a high rate. “It’s worse even for lower-income Canadians—people below the $45,000 mark. They’re not going to see any personal tax cuts, but now they will be paying more in CPP. They won’t get anything as a result of the government’s tax plan.”
That's right. Thanks to the Liberals in Canada, almost all Canadians will take home lower pay after their taxes and mandatory contributions are deducted.
The doctors and engineers have it the worst. The provincial and federal top marginal income tax rate in Ontario is 54%! And when these professionals want to buy a product with their leftover cash, there's a 13% sales tax! Utterly immoral.