A recent study conducted by the Fraser Institute claims that middle class Canadians could be paying up to $2,200 more in taxes in 2019.

The study says that more than 90% of Canadians will pay higher taxes once the Canada pension Plan tax increases are fully implemented.  The first of 7 increase to the CCP tax begins in January of 2019.  All workers pay into CCP tax.

Tom Lukiwski, MP for Moose Jaw-Lake Center-Lanigan, talks about what this study is showing.

"The main thing that the study clearly demonstrates is despite the Liberal government saying that they have lowered taxes for the middle class, in effect they've actually raised them. While it's true that the Liberals did introduce the Canada Child Benefit, they have eliminated a number of other tax benefits our Conservative government put in place."

"While the unemployment rate has fallen, wage growth for average Canadians has not risen. High paying industries have seen a decline in hours and many Canadians are working multiple jobs to make ends meet. The last thing that Canadian families need now is increased taxes."

In terms of the overall tax picture for Canadians, the Fraser Institute report maintains Canadians are paying more tax now then before the Liberals came to power in Ottawa.  The study says in part:

  • Since coming into office, Prime Minister Justin Trudeau’s government has claimed to have reduced taxes for middle class Canadian families— based on the federal government’s reduction to the second lowest personal income tax rate from 22 to 20.5 percent.
  • However, a recent study found that when all the government’s major changes to the personal income tax system are properly accounted for (including the elimina­tion of income splitting and other tax credits), income taxes have been raised, not lowered, on the vast majority (81 percent) of middle income Canadian families.