With sky-high inflation, many Canadians are having a tough time affording gasoline and groceries. In fact, nearly 60 per cent of Canadians find it difficult to feed their families, according a poll from the Angus Reid Institute from earlier this year.
The federal government could immediately make life a little more affordable for Canadians by reducing taxes. But instead of providing tax relief, the federal government has recently increased the carbon tax, alcohol taxes and payroll taxes. While the federal government increased the basic personal exemption to increase the tax-free portion of incomes, if you make more than $40,000, then your federal income tax bill is going up this year due to rising payroll taxes.
Some provincial governments have provided significant tax relief. Alberta removed its provincial gas tax in April 2022, saving taxpayers 13 cents per litre of gasoline. In May 2022, Newfoundland and Labrador cut its gas tax by 8.05 cents per litre. In July 2022, Ontario cut its gas tax by 5.7 cents per litre.
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