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Canadian Taxpayer’s Federation calling on Sask. Government for changes to income tax practices
Brendan Ellis, CTV Regina
Published Thursday, December 27, 2018 5:02PM CST
Last Updated Thursday, December 27, 2018 7:02PM CST
The Canadian Taxpayer's Federation is calling on the Provincial Government to bring back Indexation calling it an “unfair practice.”
In the new year, Canadians could be seeing more deductions from their pay in 2018 due to what the Canadian Taxpayers Federation (CTF) calls ‘Bracket Creep.’
“Bracket creep is when you get that cost of living bump on your pay cheque. So you're not really making more money but the dollar amount goes up a little bit because of inflation,” said Todd Mackay from the Canadian Taxpayer’s Federation. “But if the government doesn't index tax brackets, more of your money is getting bumped in to higher tax brackets and you end up paying more tax even though you're not making more money."
According to the CTF, the Government of Saskatchewan temporarily suspended Indexation in the 2017-18, which keeps Canadian’s from moving into higher tax brackets due to inflation and cost of living increases. Saskatchewan is one of four provinces in Canada that does not provide some form of indexing.
Saskatchewan’s Ministry of Finance noted in a written statement that “Indexation may be reviewed in the future, depending on the province’s fiscal situation moving forward,” but they also noted that personal income tax in Saskatchewan is among the lowest in the country.
The CTF estimates the average Saskatchewan family’s provincial taxes were increased by $50 last year, and it is expected to add an additional $91 to that total in 2019.
Based on a report by Joey Slattery