Canadian PM Justin Trudeau performed the oldest magic trick in the book – pay attention to this hand while I do something else with the other – when he quietly increased the amount of tax Canadians will pay by an average of $2,200 per year, while publicly claiming to be working to reduce taxes.
Unsurprisingly, naive liberals have fallen for the oldest trick in the liberal playbook all over again. When will they learn?
A new Fraser Institute report says more than 90% of Canadian families will be burdened with significantly higher taxes once the Canada Pension Plan tax increases are fully implemented by 2025. The first of seven increases to CPP tax — which all workers much pay — begins January 2019.
The study’s co-author, Charles Lammam, talks about the impact on middle-class families: https://archive.fo/96pP2What was the most surprising in the report?
“Canadian families will endure a significant tax increase and that tax bill will increase over time. The Trudeau government has talked a lot about cutting taxes for families. Based on the personal income tax changes they’ve already put in the case, we’ve found that’s not true for the vast majority of middle class families. But then there are major tax changes set to come into effect, starting next year, particularly the payroll tax hike to fund the Canada Pension Plan expansion. We found that plus what has already been implemented will result in over 92% of all families with children in Canada paying higher taxes and they’ll be paying on average $2,200 more per year.”Why is this significant?
“The Trudeau government has repeatedly claimed to cut taxes on the vast majority of families and our findings show that’s not the case…The reason why the Trudeau government is claiming they cut taxes because they’re focusing on just one of the many changes that they’ve either enacted themselves or spearheaded as a government. The focus has been on the federal rate cut from 22% to 20.5% — however, the reality is they’ve introduced several other tax changes both to the personal income tax system and they’ve spearheaded with the provinces, CPP, which will result in higher payroll taxes.”
What does a $2,200 tax hike mean in context for 92% of families in Canada?
“It could be a mortgage payment for a family, it could be childcare, grocery bills. We’re not talking about a trivial amount here. It is a significant increase in the tax bill, no doubt. When we look at the middle class, they’re actually more hard-hit than the overall average. Which is ironic because that is the group of families that Trudeau government has said they want to help. In fact, what will happen in practice, there will be basically no tax decrease for anybody once the CPP tax changes are in full effect.”