Tax drift continues to hit Albertans in their wallets

Double takes can be common when Albertans review their first pay stub in 2022.
Municipal tax increases aside, Albertans will continue to be affected by federal tax changes and a shift in provincial tax brackets for 2022.
The 2022 tax change report prepared by the Canadian Taxpayers Federation (CFF) says bracket drift will cost Albertans between $ 44.50 and $ 141.13, depending on income. Since 2020, it has cost those earning $ 100,000 or less a total of $ 105.73, and a significantly higher amount for those with higher incomes.
The tax bracket drift came after the Alberta government stopped adjusting tax brackets for inflation in the 2019 provincial budget, says Kevin Lacey, CTF director for the ‘Alberta. Albertans have automatically shifted to a higher tax bracket every year since then.
He says fork drift has been eliminated federally and CTF will continue to fight with the province.
“When Jason Kenney, our premier, was an MP, he called it a ‘hidden and regressive tax grab’, and we agree,” Lacey said. “That’s why he needs to change that now as we look at the 2022 budget.”
He says Albertans already face inflationary pressures that are usually not offset by wage increases.
Federal income tax paid in 2022 will be lower as the basic personal amount will drop from $ 13,808 to $ 14,398. Canadians earning less than $ 155,625 can claim an additional $ 590 in tax-free income with the increase in the Basic Personal Amount, saving them approximately $ 89 in income tax.
As promising as it sounds, Lacey says the bottom line is that Canadians will pay more federal taxes.
The CTF report outlines other major tax changes at the federal level, including:
- The Canada Pension Plan tax hike will cost workers and businesses an additional $ 333 each in 2022.
- Rising EI premiums will cost each worker $ 63 more in 2022 and businesses $ 89 more.
- The federal carbon tax will increase for the third time during the pandemic to 11 cents per liter of gasoline on April 1, 2022.
- Alcohol taxes will increase for the third time during the April 1, 2022 pandemic.
Lacey says the higher EI and CPP premiums can be blamed on the government for expanding the focus of EI and the pension fund.
“This is a direct result of governments using EI and CPP for things they weren’t meant to, for grants that have taken place over the last decade and now, as a result, they have to replenish the funds because of the problems we have with the pandemic. “
By March 31, 2022, the CTF estimates that the average share of each Albertan in federal and provincial debt will be $ 58,200.
According to the most recent Canadian Consumer Tax Index report from the Fraser Institute, the average Canadian family spent over 36% of their budget on taxes in 2020.