On the heels of my previous post about how we’re actually paying more taxes than we think we are, comes a report that in 2009 our taxes will rise again by up to $188 in payroll taxes. The worst part of it is that the payroll tax increases will be going to the involuntary socialist programs of Canadian Pension Plan and Employment Insurance, the latter having a very checkered history indeed. Although the media has been deafeningly silent about E.I. overpayments on what amounts to little more than a slush fund for the Liberals, there is something almost obscene about payroll taxes increasing for E.I., which now stands at a staggering $54 billion surplus.
In recent years, while Canada or Quebec pension plan contribution limits have been raised annually, employment Insurance premiums have been lowered, making the overall increase to payroll taxes very small, it said. However, in 2009, both EI premiums and CPP contribution limits will increase.
Canadians earning $42,800 or more, and their employers, will pay an additional $188 in payroll taxes, it said.
“This is the largest single hike in payroll taxes since 2002,” it noted.
The maximum payroll tax, including both CPP and EI premiums, will rise by $90 to $2,850 for employees and by $98 to $3,143 per employee for employers.
The worst thing about paying more taxes for something like this is that there is nothing optional about it whatsoever. You cannot opt out of paying Employment Insurance any more than you can politely deny the need for a pension you never signed up for. And for those who say that these programs are an integral part of our social security, then I suggest you consider the concept that I might be more skilled than the government at socking away rainy day money. Or I may not. The point is that I want that choice. Instead, the government will be stealing $3.75 more off every pay cheque I receive in 2009.
The article cites the fact that federal basic and spousal exemptions rise in 2009 to $10,100, which is a $260 increase above the automatic annual indexation adjustment. Not that it will affect me, since my wife’s income remains the same: zero. One positive implementation of the Conservative government is the new tax-free savings account, which isn’t exactly “tax-free”, but avoids the dreaded “double tax” of capital gains on after-tax income. No doubt the opposition will be pleased with any idea of raising payroll taxes for their theory on economic stimulus is based on increasing social security programs, although I doubt Mr.Harper will have gone far enough for their liking. But as I say, the idea of raising payroll taxes on E.I. continues to be obscene and repugnant. E.I. payroll deductions should be eliminated entirely until the fund is depleted of the $54 billion surplus, and then run on a completely break-even basis, and apply only to those who apply for it on their personal income tax returns every year.
I want the right to say no! I demand the right to say no to socialism!
















