Nothing says get ready for a new year like the annual hit to the pocketbook that clicks over on Jan. 1.
That may seem odd, given how constantly we are reminded of our low tax rates by politicians.
And it’s certainly true that middle income earners – those earning between $45,000 and $90,000 – can look forward to a federal tax cut this year.
So far, so good.
The bad news is that cash is as likely to get handed back to Victoria and local government as it is to go into anyone’s personal piggy bank.
The provincial government has a particularly bad habit of claiming to lower taxes while raising premiums, user fees and fares that pay for collective services.
It’s an approach that tends to hit those with the least ability to absorb increases especially hard.
For instance, medical service premiums – which have risen almost 40 per cent in the last seven years – will be going up again. That means a larger monthly outlay towards health care for most families, individuals or their employers.
B.C. Hydro rates – another unavoidable expense for most families – are also slated to rise.
Probably some of the largest sticker shocks this year will come at the local level – as property assessments are likely to rise significantly. Those on the high end of the bell curve will be hit hard at property tax time.
While there are many levels of government and many types of taxes, there’s still only one taxpayer – us.
Expect to dig deeper in 2016.
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