Provincial, Federal Governments Coming To Take More Of Your Money Starting Jan. 1


British Columbians face another MSP increase in 2012 and federal government increasing payroll taxes.

OTTAWA – British Columbians have another increase in their Medical Services Premium (MSP) to look forward to in the New Year.  The Canadian Taxpayers Federation is concerned about what they say amounts to an 18.5 per cent increase in the health tax over the past two years.

The CTF’s Jordan Bateman says the province is ripping off taxpayers.  “This is the third January 1st in a row of a major increase.  So, a family like mine back in 2009 was paying about $108 a month in MSP tax.  Now we’re paying $128 a month.”

“Families and seniors are already finding it difficult to keep up with rate increases at BC Hydro, ICBC, BC Ferries and tax hikes at the gas pump,” says the CTF’s Jordan Bateman.  “These MSP, CPP and EI increases are yet more weight added to the tax burden.”

He says those hikes simply aren’t sustainable.  Bateman adds Ottawa is also getting into the act, with a boost to payroll taxes.  “Their taking about $306 per employee more in taxes.  About half of that will come from the employee themselves, so about $142 extra per employee for CPP and EI.”

He says that is the second largest hike in those taxes since 1994.  Bateman suggests the increases are offsetting recent progress on income taxes.

Workers will see their EI premiums rise by five cents per $100 of insurable earnings to $1.83 on New Year’s Day, while the maximum insurable pay increases to $45,900 from $44,200.  In addition, the maximum pensionable earnings rise to $50,100 from $48,300.