First pay cheque a little smaller for local taxpayers
The first pay cheque for B.C.ers in 2014 is going to be a little smaller according to the Canadian Taxpayers Federation.
The federal think tank calculated the New Year increases across the board, including Employment Insurance, Canada Pension and MSP premiums.
The maximum employee EI taxes goes up $23 in 2014 to $914, while the employer’s share of EI payroll tax goes up $31 to $1,279.
That means a working couple, each earning at least $48,600 in 2014, will have $4,386 in EI payroll taxes sent to Ottawa on their behalf.
The CTF said federal government expects to collect $4.2 billion more in EI taxes in 2014 than they pay out in benefits.
“People have compared the government’s EI game to a casino where the house takes a huge cut of the money,” said CTF Federal Director Gregory Thomas in a website release.
“It’s completely unfair to compare EI to a casino, because you an occasionally win when you give your money to a casino.”
BC residents see an increase to the Medical Services Premium tax for the fifth consecutive year.
A family will now pay $138.50 a month in MSP tax, up 28 per cent since 2010.
This tax grab wipes out any savings from B.C.’s low rate of inflation.
For a family making $80,000 a year in B.C., the total tax increase is $73 in 2014 – not including approved ICBC, hydro or municipal property tax increases.
In the City of Nelson, water rates will be increased by 4 per cent for and the sewer rates increase will be 3 per cent for 2014 to 2016.
“It’s another year of taxpayers falling further behind in British Columbia,” said CTF B.C. Director Jordan Bateman.
“Anyone making more than $25,000 a year in B.C. will lose ground in 2014, thanks mainly to the province’s continued MSP tax grab.”
In an attempt to deflect public opinion, the federal government introduced a new tax credit for first time donors to a registered charity.
Taxpayers receive a credit of 40 per cent of the first $200 donation, rather than 15 per cent. The credit for donations over $200 goes to 54 per cent for first time donors, rather than previous 29 per cent.
CTF calculations for the tax changes that will be occurring on January 1st for 26 different income and family scenarios can be found here: http://www.taxpayer.com/media/2014_New_Years_Tax_Changes_Backgrounder.pdf