The following blog post was submitted by CTF supporter Wally Forder, and touches on an important tax increase that will affect virtually everyone this year.
In all the discussions of price and fee increases that hit taxpayers in 2014 and coming our way in 2015, there is one big one that is not getting any mention.
That one is the reduction in the BC basic personal and spousal exemption amounts for taxation years after 2012. The BC Government can claim they did not increase tax rates, but by cutting these exemptions, taxpayers will pay more taxes now and in the future.
The Federal Government has continued to increase their personal exemptions at a nominal rate of around 2% per year, while the BC Government has decreased them by up to 15%
If the BC Government had followed the lead of the Federal Government rates, and, we compare that to what they actually did, we can see the resulting tax increases.
Comparison of Federal and BC Government Tax Exemptions
Federal Government (CRA) Exemptions
| 2015 | 2014 | 2013 | 2012 | |
| Basic Personal | 11,327 | 11,138 | 11,038 | 10,822 |
| Spouse Amount | 11,327 | 11,138 | 11,038 | 10,822 |
| % increase f/ 2012 | 4.67% | 2.92% | 2% |
BC Provincial Exemptions
| 2015 | 2014 | 2013 | 2012 | |
| Basic Personal | 9,938 | 9,869 | 10,276 | 11,354 |
| % Decrease | 13% | 15% | 9% | |
| Spouse Amount | 8,509 | 8,450 | 8,860 | 9,964 |
| % Decrease | 14.6% | 15% | 11% |
BC Government had they followed Federal Increases
| 2015 | 2014 | 2013 | 2012 | |
| Basic Personal | 11,883 | 11,685 | 11,581 | 11,354 |
| Spouse Amount | 10,429 | 10,255 | 10,163 | 9,964 |
Additional Income being taxed in BC
| 2015 | 2014 | 2013 | 2012 | |
| 3,865 | 3,621 | 2,608 | ||
Additional Taxes being paid in BC
| BC Tax Rates | 2015 | 2014 | 2013 |
| 5.06 | 196 | 183 | 132 |
| 7.7 | 298 | 279 | 201 |
| 10.5 | 406 | 380 | 274 |
| 12.29 | 475 | 445 | 321 |
| 14.7 | 568 | 532 | 383 |
| 16.8 | 649 | 608 | 438 |
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey