Canadians will see a variety of changes to taxation in the new year.
Provincially, BC residents will no longer be paying their Medical Services Premium (MSP), a change estimated to save individuals up to $900 a year.
However, employers will be required to continue paying an Employer Health Tax (EHT), shifting responsibility from individuals onto businesses.
The Government of British Columbia’s official website says that the EHT was implemented to avoid impacting public services.
However, Kris Sims, BC Director of the Canadian Taxpayers Federation, is concerned that the shift to EHT will be reflected in both the hiring of new employees and the wages of existing ones.
“We need to brace ourselves for the shift to Employer Health Tax,” Sims warned.
Federally, Canadians will see a change to the basic personal amount (BPA) of non-taxable income, which will increase from $12,000 to $15,000.
The alteration to the BPA is expected to save the average Canadian $300 each year by 2023.
Additionally, the federal government continues to show dedication to the carbon tax, a stance that Sims continues to oppose.
Sims, a vocal critic of the carbon tax, believes that the ongoing governmental support of federal carbon taxes may impact prairie provinces, leading to an increase in food prices.
Sims predicts that these changes will result in a higher cost of living provincially, explaining: “unfortunately, for most British Columbians, 2020 will be a more expensive year.”