Nearly every Canadian will pay higher federal income taxes in 2024, according to the Canadian Taxpayers Federation (CTF).
The federally incorporated, not-for-profit citizen’s group released its annual report on Tuesday highlighting the varied tax changes across Canada. This includes federal tax increases like the rising payroll, alcohol and carbon taxes, as well as a second Canada Pension Plan tax and increases in maximum pensionable and insurable earnings.
Here’s a look at some of the federal changes:
In 2024, the maximum pensionable earnings subject to the Canada Pension Plan (CPP) tax will increase, resulting in higher CPP contributions for both employers and employees. They will each pay $3,867, marking a $113 increase from the previous year for earnings of $68,500 or more.
Additionally, a new CPP2 tax will be introduced and applied to earnings between $68,500 and $73,200, with a maximum tax amount of $188. For those earning $73,200 or above, the total CPP contribution (including CPP and CPP2) will rise to approximately $4,055, an overall increase of $301.
Freelancers and self-employed individuals are responsible for both portions.
These changes are part of a broader strategy to strengthen retirement support for Canadians and will benefit younger workers the most, as the full effects will materialize over decades, reports The Canadian Press.
In 2024, both the Employment Insurance (EI) tax rate and maximum insurable earnings in Canada will increase.
Employees will pay $1,049 and employers $1,469 for EI. This is a rise of $47 for employees and $66 for employers, for those earning $63,200 or more.
Since 2018, the EI tax has gone up by $191 for employees and $267 for employers. Consequently, total federal payroll taxes (CPP and EI) will amount to $5,104 for workers earning $73,200 or above in 2024, while employers will be on the hook for $5,524.
Overall, Canadians earning $30,000 to $200,000 will see tax increases ranging from $9 to $347 when considering changes to the CPP and EI taxes.
Canada’s federal carbon tax will rise from $65 to $80 per tonne on April 1, 2024, increasing the carbon tax rate per litre of gas. This means a higher cost for fueling vehicles, with a family filling a 70-litre minivan expected to pay about $12.32 more per fill-up.
Most provinces and territories will be subject to this increased rate, except Quebec. The government suggests a net benefit for families with rebates, but a Parliamentary Budget Officer report shows the carbon tax will cost the average household between $377 and $911 in 2024-25, even after the rebates.
A second carbon tax for fuel producers, introduced last year, could further raise fuel prices if producers don’t meet the requirements of the regulations.
Citing the PBO’s analysis, the second carbon tax is expected to increase the price of gas by up to 17 cents per litre and cost the average household between $384 and $1,157 annually by 2030.
Canadians who heat their homes using furnace oil received some relief last year when it was announced they would be exempt from the carbon tax for three years. Households using furnace oil for heating will save 17 cents per litre until April 2024 and then 21 cents per litre afterwards.
According to CTF, only about 3 per cent of Canadian homes use furnace oil. Similar exemptions have yet to be granted for other heating sources, like natural gas, where removing the carbon tax could save an average household about $300 annually.
Beginning on April 1, 2024, Canadians will pay more for beer, wine and spirits.
The “alcohol escalator tax” will increase excise taxes in line with inflation. The escalator tax will see a 4.7 per cent rise in federal excise tax on these beverages, resulting in an estimated additional cost of about $100 million to taxpayers for the 2024-25 period.
Per CTF, taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.
Introduced last November, Canada’s new Digital Services Tax (DST) legislation is aimed at large online companies that host and generate marketplaces, social media platforms and online advertising revenue, like Google and Facebook.
A previous PBO estimate found that DST will cost taxpayers $1.2 billion in 2024, but that revenue estimate depends on when the tax is implemented. Consumers should also expect to pay higher prices due to DST, if recent history repeats.
When France introduced a three per cent DST in 2019, Amazon raised seller fees for small and medium-sized businesses in France by the same figure.
“An economic impact assessment of the French digital services tax shows that about 55 per cent of the total tax burden will be passed on to consumers, 40 per cent to online vendors and only five per cent borne by the digital companies targeted by the new tax,” according to the Tax Foundation.
EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.
Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.
Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.
Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.
Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.
RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.
Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.
“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.
But officers had been investigating other cases when they found Strawberry.
“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.
While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.
This report by The Canadian Press was first published Sept. 13, 2024.
The Canadian Press. All rights reserved.
RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.
Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.
The homicide team took over when the BC Coroners Service said the man’s death was suspicious.
It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.
Police say the accused will remain in custody until at least his next court appearance.
The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.
This report by The Canadian Press was first published Sept. 13, 2024.
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.
Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”
However, he says the union negotiators didn’t get an offer that they could recommend to the membership.
McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”
About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.
McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.
He says it’s unclear when the talks will resume, but he hopes next week at the latest.
The employer, Transdev, didn’t reply to an interview request before publication.
This report by The Canadian Press was first published Sept. 13, 2024.
The Canadian Press. All rights reserved.
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