Budget 2010 says “The Government will not raise taxes” (pg. 156). That’s reassuring, unless you happen to fall within one of the following five groups who will see their taxes increase this year:
1) Canadians who have a job: Budget 2010 confirms the government’s plan to lift the freeze of EI premiums in 2011 (p. 51). While the government projects a jump in EI premium revenues from $16.6 billion this year to $26.6 billion in 2014-15 (p. 176), private sector forecasts predict a $13 billion increase in employee EI premiums over five years.
By one estimate, this means Canadians workers will see their EI premiums rise by $1,264 for the average two income family.
2) Canadians who employ Canadians: The same $13 billion increase in EI premiums will increase taxes for a small business with 10 employees by $8,884 and kill 220,000 jobs.
3) Canadians who fly on airplanes: The Conservatives are increasing the Air Travellers Security Charge by an additional $2.58-$8.91 each way, depending on the destination, to pay for full-body security scanners (pg. 111).
4) Canadians who are post-doctoral researchers: By limiting eligibility for the Education Tax Credit and scholarship exemption to post-secondary programs that lead to a degree or diploma, post-doctoral fellows will now have to pay taxes on their research scholarships (pg 349). At McGill University, where the average fellowship is worth $38,000, this means a $4,100 tax increase.
5) Canadians who are bald: By excluding cosmetic procedures from the medical expenses tax credit, Canadians can no longer claim a tax credit on their wigs or hair transplants (pg. 102).
