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New year brings tax increases, hikes to CPP and EI premiums

LOWER MAINLAND (NEWS1130) – The new year brings such promise, but it also comes with a hit to your wallet.

As of midnight, municipalities, the province and the federal government all raised taxes and fees.

It starts at the local level with property taxes; virtually every municipal government in Metro Vancouver approved tax hikes. The increase varies, depending on where you live.

Then, the provincial government upped health care premiums. MSP premiums will now eat another $60 out of the bank account for a family of four, according to the Canadian Taxpayers Federation.

The feds are getting in on the action, too; you’ll find more of your paycheque eaten up by boosts in Canada Pension Plan and Employment Insurance premiums. If you make more than $47,000, the increases will cost you another $125.

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HelloKitty

@Mean Gene. Can I have some of the crack you’re smoking? Yes, it’s not “taxable income” per se, but you’re paying it. Your comment is misleading. If you earn, say $50K / year, the employer deducts the max EI & CPP from your pay cheques. When you file your return, only the portion you pay to the government is tax deductible. In other words, whatever your income tax bracket is is what you are allowed to deduct. For example, if you pay x% in income taxes, you only get to claim x% of the EI etc. deductions. The rest you pay out of pocket. So, yes, it hurts when they raise the rates when we live in a world of pay cheque to pay cheque.

January 02, 2013 at 8:25 am
MCDinBC

Just wondering where Volkan gets his info from…I’ve worked for the fed gov’t. for almost 12 years & haven’t had a 4% raise in ANY of those years…our last raise was 1.5%.

January 02, 2013 at 7:56 am