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Taxes and fees set to change in the new year
SURREY -- As British Columbians anticipate the arrival of a new year, they can also look forward to new tax hikes and some tax breaks that will kick in for 2020.
One big change is the elimination of MSP premiums, which the province calls the biggest middle-class tax cut in B.C. history – saving families as much as $1,800 per year.
But the Canadian Taxpayers Federation accuses the government of playing a shell game when it comes to collecting money for health care because the responsibility for making up the difference falls on employers with annual payrolls of more than $500,000.
"That has really added to the tax burden of many job creators here in British Columbia, and going forward, in the year 2020, they're going to keep the Employer Health Tax,” said CTF’s Kris Sims.
Most municipalities in the province have payrolls above the threshold for the EHT, so Sims worries the cost will be passed on to homeowners through increased property taxes.
The provincial carbon tax will also go up another $5 per tonne this year, adding more than a cent per litre to the price of gas across the province.
At the federal level, the basic personal amount people can earn before having to pay federal taxes is increasing by almost $1,000 to $13,229 – and the Liberal government plans to bring that number up to $15,000 by 2023.
“That is a really significant income tax cut and we want to give the federal government credit where it is due,” said Sims. “Eventually, by the year 2023, that will save the average Canadian around $300 per year.”