Taxes going up for Islanders, warns Federation
The Canadian Taxpayers Federation is warning Islanders to brace for a tax hike in the new year.
Islanders with a combined household income of $80,000 a year will pay $241 more next year in tax. Of that, $90 will be provincial income tax, largely because P.E.I. is one of three provinces that isn't raising its tax brackets to equal the rate of inflation.
Kevin Lacey, Atlantic Canada director of the Canadian Taxpayers Federation, said Islanders pay the third highest income taxes in all of Canada
"Most Islanders wouldn't be aware that their taxes are going up," said Lacey.
"Many Islanders wages are not even keeping up with inflation. That extra little bit that now they're going to have to give to the government is going to hurt. These increases combine over time, so it's $92 this year, but it's likely to be close to that amount again next year, and the year after that, and the year after that."
The federation has demanded tax bracket increases for years, said Lacey.
Provincial Finance Minister Wes Sheridan couldn't be reached for comment Thursday. But last year Sheridan said indexing the tax bracket would cost millions of dollars, and won't be done until the budget is balanced.
A balanced budget isn't projected until 2015.