The Canadian Taxpayers Federation (CTF) released details today on secret personal income tax increases from the 2014 provincial budget. The increases come from “bracket creep;” a sneaky way the government raises income taxes without taxpayers knowing.
Manitoba is one of three provinces that doesn’t index tax brackets for inflation. The result is, as a taxpayer’s income rises with inflation, more of it is taxed at higher rates because the tax brackets are frozen. This means someone's purchasing power hasn't gone up, but their taxes have; most provinces recognize this as an unfair, backdoor tax hike. The CTF released a YouTube clip in Dec 2012 that explains the problem – click here.
When the CTF crunched the numbers, here is how the tax increases impact Manitobans:
Single earner, $35,000 of income: $34 tax increase
Single earner, $80,000 of income: $98 tax increase
Dual income of $80,000, two children: $67 tax increase
“No one was expecting big tax cuts in the government’s budget,” said CTF Prairie Director Colin Craig. “But the province should have put an end to secret personal income tax increases that most people don’t know about. Manitoba should do what most provinces did a long time ago and put an end to bracket creep.”
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