If you’re Canadian, and in the middle class, and feel like you have less and less spending money (disposable income) you’re probably right.
A new report out by the Vancouver-based Fraser Institute says the majority what is termed the Canadian middle-class are paying hundreds of dollars more in tax this year.
The Fraser institute, an independent public policy think tank, but generally considered to be conservative leaning, says about 81 per cent of middle class Canadians will pay on average about $840 more in tax this year.
The report is called, “Measuring the Impact of Federal Personal Income Tax Changes on Middle Income”.
Charles Lammam, director of fiscal studies at the Fraser Institute and co-author of the report said in a statement, ““The federal government has repeatedly claimed they’ve lowered income taxes for the middle class while in reality, taking their major income tax changes into account, they’ve actually raised taxes on the vast majority of middle-class families”
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Lammam’s study involved tax analysis for 3.88 million Canadian couples with at least one child.
This latest report comes amid a widespread concern about the governing federal Liberal party’s other proposed tax changes affecting private corporations and businesses.
The Fraser report looked only at the current tax burden and did not include potential taxes from the proposed new rule changes.
The public consultations on the proposed tax rule changes conclude next month, but Prime Minister Justin Trudeau has been publicly defending the changes amid fierce criticism from farmers, small entrepreneurs, and professionals like doctors and lawyers who all say it will adversely affect them and their business.
Lamman says the government has not been forthright by promoting only their limited tax reduction for the second-lowest personal income tax rate (from 22
to 20.5 per cent) while ignoring mention of the number of tax credit programmes they’ve eliminated, which effectively raises the tax burden.
The Fraser report analyzed income taxes for 3.88 million Canadian couples with at least one child.
Additional information- sources
- Fraser Institute
- National Post: J Snyder: Sep 26/17: more tax despite government claims
- PostMedia-Sun: M Bonokoski: Sep 26/17: milking the middle class
- Global TV: M Scotti: Sep 1/17: Farmers, doctors oppose tax changes
- Canadian Press (CBC): J Smith: Sep 22/17: Liberals definition of “middle class” not useful
- CBC: M Gorman: Sep 23/17: doctors against tax proposals
- Star: B Campion-Smith: Sep 19/17: Trudeau defends tax proposals
- CBC: P Zimonjic: Sep 01/17: Trudeau says he’s listening
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