(Pexels)

Federal tax changes come into effect as new year begins

Changes at the federal level will affect just about every Canadian, as well as small businesses

The new year brings with it tax changes at the federal level that will affect just about every Canadian, as well as small businesses.

One of the first changes workers will see is an increase in Canada Pension Plan premiums coming off their paycheques — the first of five years of hikes to pay for enhancements to the pension plan.

RELATED: Bills to grow bigger in 2019 for B.C. residents

Employment Insurance premiums, on the other hand, will drop by four cents for every $100 of insurable earnings.

Meanwhile, the small business tax rate is going down from 10 to nine per cent. But changes to how much so-called passive income a small business can hold are also coming into effect, which is expected to push some businesses into paying a much higher corporate tax rate.

Also in 2019, low income workers can qualify for an increase in the Canada Workers Benefit. But they will have to wait until 2020 to receive the extra money.

The federal government’s new carbon pricing system will also come into effect in provinces that don’t have carbon pricing mechanisms of their own, resulting in higher costs for fossil fuels by April, and direct rebates to partly offset the increased costs.

Conservative Opposition Leader Andrew Scheer is already gearing up to make it an issue leading to the October federal election, calling 2019 the year of the carbon tax.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Young Agrarians Hosting mixer for Cariboo farmers

Come learn more about agriculture and business this February

Cannabis retail applications spark debate in Williams Lake

Are we stifling economic growth or promoting public safety?

Police and accused await sentencing in 2018 New Year’s Day stabbing

Blake Johnny was in the prisoner’s box in Williams Lake Supreme Court Friday

Ferry connecting Port Hardy and Bella Coola expected to set sail this summer

Its first in-service route will sail in central coast waters on May 18, 2019.

Local leaders continue to apply pressure to keep Atlantic Power open

The biomass-energy plant’s electricity purchase agreement expires June 30, 2019

VIDEO: Students in MAGA hats mock Native American at Indigenous Peoples March

Diocese in Kentucky says it is investigating the matter, caught on video by onlookers

UPDATE: B.C. woman and boy, 6, found safe, RCMP confirm

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

PHOTOS: Women’s Marches take to the streets across B.C. and beyond

Women and allies marched worldwide protesting violence against women, calling for equality

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Federal Liberals announce former B.C. MLA as new candidate in byelection

Richard Lee will face off against federal NDP leader Jagmeet Singh

No winning ticket in $10 million Lotto Max jackpot

No win in Friday night’s draw means the next Lotto Max draw will be approximately $17 million

Scientists ID another possible threat to orcas: pink salmon

For two decades, significantly more of the whales have died in even-numbered years than in odd years

Burnaby byelection turmoil sparks debate about identity issues in politics

The Liberals still have not said whether they plan to replace Wang, who stepped aside Wednesday

Most Read