The Canadian Taxpayers Federation wants Premier Jason Kenney to stop the de-indexation of tax brackets. (File photo by BLACK PRESS)

The Canadian Taxpayers Federation wants Premier Jason Kenney to stop the de-indexation of tax brackets. (File photo by BLACK PRESS)

Taxpayers association warns of UCP tax grab

Opposes de-indexation of tax brackets

The Canadian Taxpayers Federation is calling on Premier Jason Kenney to reverse his plan to hike income taxes by de-indexing tax brackets.

“Kenney is reaching deeper into taxpayers’ pockets in 2021 with his sneaky backdoor tax grab known as bracket creep,” said Franco Terrazzano, the federation’s Alberta director.

“The last thing Albertans need right now is the provincial government taking more of our money through a sneaky backdoor tax grab.”

The federation said bracket creep happens when governments stop indexing tax brackets with inflation and taxpayers get bumped into a higher tax bracket even though we can’t actually afford to buy more. Bracket creep also allows inflation to erode the tax free portion of people’s income.

Kenney introduced bracket creep in the 2019 budget and it was estimated that de-indexation of the income tax system would cost Albertans $196 million in 2021.

Terrazzano said Saskatchewan is ending bracket creep in 2021. Only Alberta, Nova Scotia and Prince Edward Island do not index their tax brackets at all.

“Saskatchewan knows that hiking income taxes during a severe economic downturn is the wrong thing to do and the Alberta government should know this too,” said Terrazzano.

“Kenney wasn’t sent to Edmonton so he could reach deeper into our pockets during a downturn. The premier needs to cancel his sneaky bracket creep tax hike.”

In 1997, when Kenney was a Reform Party MP, he wrote that bracket creep was “hidden and regressive tax grab,” said Terrazzano.



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