Ten year-end facts Canadians need to know
As we end 2017, here are 10 year-end facts Canadians should understand and consider as we enter 2018:
• The total tax bill for the average Canadian family will exceed $35,000 in 2017, or 42.5 per cent of their income—more than what the average family spends on housing, food and clothing combined.
• While the federal government has claimed it “cut taxes for middle-class Canadians everywhere,” the reality is that 81 per cent of middle-class families in Canada are paying higher federal income taxes under the government’s personal income tax changes—on average, $840 more a year.
• More than 60 per cent of lower-income families (those in the bottom 20 per cent of earners) in Canada now pay higher federal income taxes because of the federal government’s tax changes.
• And that does not include the impact of the federal carbon tax mandate, the coming CPP payroll tax increase, the lowering of tax-free savings account contribution limits, or the proposed changes to the tax treatment of incorporated small businesses.
• Canada’s high and increasing personal income tax rates on its best and brightest workers have made the country uncompetitive compared to other developed countries. The federal government increased the top federal tax rate to 33 per cent from 29 per cent, and increases to top provincial rates have been made in Ontario, Alberta, British Columbia and other provinces. Seven of our 10 provinces now have a top combined federal-provincial rate above 50 per cent.