this post was submitted on 18 Jan 2024
17 points (100.0% liked)

Personal Finance Canada

1195 readers
1 users here now

Come and discuss anything related to personal finance, directly or indirectly, with other Canadians!

founded 1 year ago
MODERATORS
 

cross-posted from: https://kbin.social/m/[email protected]/t/769112

These are Canada's new tax brackets and income tax rates in 2024

Cooler inflation in 2023 is affecting how much Canadians will pay in income tax this year.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 2 points 10 months ago

The article says that “Most taxpayers would view this outcome as a ‘good thing.’” But that is only true if, contrary to fact, "most taxpayers" have lower income growth than inflation.

I think we're talking past each other a bit instead of really disagreeing. I get your perspective that, given that one's income is fixed, it's better to pay less in taxes to reflect how much poorer you've become. Sure, that makes sense.

But here's another perspective: the tax brackets are adjusted for inflation because inflation exists. Income tax wouldn't function otherwise. So, if you're paying less nominal taxes, it's only because this year you're poorer than the last. That is a strange thing to celebrate.