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5 Government Bodies Don't Take Affordability of Tax Increases Into Consideration

Author: Colin Craig 2014/03/12

The Canadian Taxpayers Federation (CTF) released freedom of information documents from five government bodies in Manitoba today, each showing they raised taxes or rates without taking into account increases to the average taxpayers’ earnings. The CTF is calling on each body to take changes to taxpayers’ earnings into account in the future.

Specifically the CTF would like to see government bodies take Statistics Canada’s average weekly earnings data into account when considering overall tax increases. Tax increases passed by other governments should be considered as well.

“We can’t keep seeing the average taxpayers’ income go up by one or two per cent while governments raise taxes by higher amounts,” said CTF Prairie Director Colin Craig. “It’s just not a sustainable situation, the system will break.”

 

Government Body

Most Recent Tax/Rate Hike

Response

City of Winnipeg

2014: 2.95%

2013: 3.87%

2012: 3.5%

No evidence of changes to taxpayers’ incomes taken into account – click here

  

  

  

City of Brandon

2014: 1.42%

2013: 0.98%

2012: 4.9%

(Originally proposed 20.3% in 2012)

No evidence of changes to taxpayers’ incomes taken into account – click here

   

   

   

Winnipeg School Division

2014: 3.6%

2013: 6.7%

2012: 7.8%

Note: Amount paid by taxpayers increased by 68% over last three years – click here

No evidence of changes to taxpayers’ incomes taken into account – click here

  

  

  

Brandon School Division

2014: 2.9%

2013: 7.8%

“The Board of Trustees does not conduct such an analysis” – click here

   

   

   

Manitoba Hydro

2014: 3.95%

2013: 3.5%

2012: 4.55%

 

Ability to pay not considered in Hydro’s plan to raise rates by 3.95% per year over the next couple decades – click here.

 

Average weekly earnings data from Statistics Canada shows Manitobans saw an increase in their pay from March 2012 to March 2013 of just 1.8%. From March 2011 to March 2012, Manitobans saw a 2.7% increase. March 2013 to March 2014 data is expected out in May, 2014.

“The government can’t obviously accommodate everyone when setting a city-wide property tax increase or school tax increase,” added Craig. “But it needs to start taking changes to taxpayers’ incomes into account.”


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Franco Terrazzano
Federal Director at
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