In 2023, workers earning over $66,600 will pay an additional $255 in Canada Pension Plan (CPP) taxes, and their employers will also pay an additional $255. For Employment Insurance (EI) taxes, workers earning over $61,500 will pay an additional $50, while their employers will pay an additional $70. These payroll tax increases will cost a middle-class worker a total of $4,756 and their employer $5,157. As a result, anyone earning $40,000 or more in 2023 will pay higher federal income-based taxes compared to 2022, despite an increase in the basic personal amount for income taxes.
Additionally, the federal carbon tax will increase to 14 cents per litre of gas starting April 1, 2023, costing the average household between $402 and $847, even with rebates. A second carbon tax, implemented through fuel regulations on July 1, 2023, will also increase the price of gas by up to 13 cents per litre by 2030, without any rebates. Alcohol taxes will also increase by 6.3% on April 1, 2023, with taxes already comprising a significant portion of the price of alcoholic beverages. Beer taxes account for around 50% of its price, while wine and spirits are taxed at 65% and over 75%, respectively. “Other countries are cutting taxes, but Ottawa is sticking Canadians with higher bills,” said Terrazzano. “Prime Minister Justin Trudeau needs to stop wasting so much money and cut taxes.”
There are a few different factors that can contribute to cities in Canada facing financial difficulties and needing to raise property taxes. Some of the most common reasons include:
Decreased funding from higher levels of government: Cities in Canada often rely on funding from provincial and federal governments to help pay for essential services such as police, fire, and public transit. If this funding decreases, cities may need to find other ways to make up the difference, such as raising property taxes.
Increasing costs of providing services: As cities grow and evolve, the cost of providing essential services can also increase. For example, if a city needs to hire more police officers or firefighters to keep up with population growth, this can add to the city’s expenses.
Infrastructure needs: Cities in Canada often have aging infrastructure that requires significant investment to maintain and improve. This can include things like roads, bridges, and public buildings. These projects can be costly, and cities may need to raise property taxes to fund them.
Economic downturns: If a city is facing an economic downturn, it may have less revenue coming in from other sources, such as sales taxes or business licensing fees. This can put pressure on the city to find other ways to balance its budget, such as raising property taxes.
Overall, there are many different factors that can contribute to cities in Canada facing financial difficulties and needing to raise property taxes. It is important for city governments to carefully manage their finances and find ways to fund essential services and infrastructure without putting too much burden on the middle class.
The City of Edmonton administration has suggested an annual property tax increase of 3.9% over the next four years in a proposed budget for 2023-2026. If approved, this would mean that Edmonton homeowners would pay approximately $718 in property taxes for every $100,000 of their assessed home value in 2023, an increase of $27 from the current year. The proposed budget for 2023 totals $3.2 billion in spending and cites several financial pressures, such as wage increases for city staff, higher debt servicing costs and interest rates for new capital projects, rising energy and fuel prices, and funding for the Edmonton Police Service through an updated formula. The budget document also notes that “there is a great deal of uncertainty surrounding inflation forecasts as the pace and scale of price pressures easing are unclear.”