Canadians who are already struggling under a record mountain of debt and are awaiting those Christmas credit card bills are being socked with more bad financial news: They will have to open their wallets wider in 2013 as payroll taxes, grocery bills and other fees shoot up.
Another $100 will disappear from paycheques as employment insurance and Canada Pension Plan deductions rise. EI premiums are rising $51.50 to $891.12 for employees making $47,400. CPP premiums jump $49.50 to $2,356.20 for workers earning at least $51,100. Employers will also pay more into the system for both.
The increases don't sit well with the Canadian Taxpayers Federation.
"Each and every one of these tax grabs cuts Canadians’ purchasing power,” said CTF president Gregory Thomas in a statement.
Some Canadians aren't impressed by the hikes either, venting their feelings on Twitter.
"Happy New Year! #CPP and #EI go up, and I may never see a dime in return! 30 years to 67, will there even be a Pension?" one man posted on Twitter.
"EI rates go up while benefits r cut. Bracket creep alive | well," tweeted another man.
And one woman tweeted "Let's examine what will increase this year: CPP, EI, benefits, property taxes, insurance, and likely condo fees. Anything going down?"
Depending where you live, other taxes and fees are also rising including for transit, hydro and some entertainment attractions.
A family of four in British Columbia will pay another $60 a year for provincial health care premiums as the monthly rate rises to $133.
Higher-paid Canadians in Nova Scotia, Prince Edward Island, Manitoba and Ontario will also pay more taxes. Quebecers will be hit with an extra income tax bracket, higher health taxes for high-income earners and increases in so-called “sin” taxes on liquor and tobacco.
Postage prices are also increasing. The cost to mail a standard letter within Canada will rise two pennies to 63 cents on Jan. 14, while mailing the same size letter to the U.S. goes up a nickel to $1.10.
And if you need a vacation to recover from shelling out all that money, brace yourself.
Adults will pay another $33 more for a passport in July as the cost rises to $120 while the price of a children's passport jumps $20 to $57.
Canadians can expect to pay 1.5 to 3.5 per cent more at the grocery store checkout this year, due in part to the major drought in the U.S. last year, according to a recent forecast from the University of Guelph. Meat, eggs and cheese will cost more due to rising grain prices and higher production costs.
With files from The Canadian Press
