Prepare to dig a little deeper when the new-year rolls around as the taxman wants even more of your hard-earned cash.
The Canadian Taxpayers Federation has released its tax- change calculations and the biggest change that will affect working Canadians is payroll tax hikes to E-I and C-P-P.
With increases to both, the average Canadian will pay an extra $142 in payroll taxes in 2012.
"If you're earning $45,000 to 50,000 or more, you're going to be seeing the max increase on your payroll taxes,” says Scott Hennig of the Canadian Taxpayers Federation. “It's going to be $142, per employee, per portion of the payroll tax hike this year, which is one of the largest tax hikes we've seen on the payroll side in the last 15 years.”
The federation says the E-I system has been paying out more, with more people being unemployed, in the last few years. Hennig suggests a change, so not every Canadian is forced to foot the bill.
“if you're someone who's in a province or job that is regularly laid off, and constantly collecting EI, maybe you should be paying higher premiums than someone who's not getting constantly laid off, and not constantly collecting EI, just like real insurance, and I think that's what should be changing, not jamming every single Canadian with a tax hike every single year.”
The C-T-F also says the government has added more programs to the E-I system, driving up the costs.
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