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OTTAWA, ON: The Canadian Taxpayers Federation (CTF) has released its annual report crunching the numbers on new year’s tax changes for Canadians, most of whom will only see minor changes in their tax bill for 2018.
Federally, Employment Insurance (EI) premiums will rise slightly, costing employees and employers an additional $9 and $13 per year, respectively. The indexation of the Canada Child Benefit (CCB) will also come into force on July 1, 2018, leading to a slight decrease in payments to eligible families on January 1st.
“There are no dramatic income tax changes on the federal side,” said CTF Federal Director Aaron Wudrick. “Canadians can for the most part breathe easy, but they shouldn’t expect to have much more money in their pockets.”
As part of its annual New Year’s Tax Changes report, the CTF has calculated the tax impact for families for 2018 for 44 hypothetical Canadian households. Some highlights include:
Wudrick noted that while 2018 did not hold many large tax changes, Canadians can expect further changes in 2019.
“The Trudeau government has delayed imposing its national carbon tax until 2019, and Canada Pension Plan premiums will begin to rise annually as well,” said Wudrick. “There is still considerable uncertainty on the business tax front, both with respect to the Trudeau government’s controversial small business tax proposals, and due to recent dramatic tax cuts south of the border which will impact Canada’s competitiveness.”
CTF calculations for the tax changes that will be occurring on January 1st for 44 different income and family scenarios can be found here.
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