The Prince Edward Island government should index the basic personal tax exemption to the consumer price index, says Opposition finance critic James Aylward.
Islanders are only allowed to keep $7,708 of their income before they start paying taxes. He said this is the lowest basic personal exemption in the country.
Aylward said Thursday this amount has not changed since the Ghiz government took power in 2007.
“Meanwhile, they continue to increase the cost of fees, services, property taxes and now with the HST is coming in as well it just seems that they’re very satisfied, very content to continue to take money out of the pockets of Islanders.”
P.E.I. is also one of just three provinces that still do not index their tax brackets to reflect inflation, as well as increases in federal EI and CPP payroll contributions. This means increases in income necessary to keep in step with inflation every year bump more income into higher and higher tax brackets, leading to Islanders paying more taxes.
Aylward said indexing the personal exemption to CPI would help ease Islanders’ taxation burdens as they prepare to pay a new tax when the HST is implemented this spring.
“It would put a few hundred dollars back in every Islanders’ pocket and, in turn, Islanders are going to spend that money and it would help the economy,” Aylward said.
He further pointed out government has tied future provincial fee increases and property tax increases to CPI. He wonders why the personal tax exemption cannot be treated in the same manner.
Finance Minister Wes Sheridan was out of the province Thursday. But previously he has told The Guardian changes to the personal taxation formula would not happen until after the budget is balanced, which could be as late as 2016.
I agree with you Mr. Kays, this is exactly what is happening. One example of the provincial liberals miscalculation was the gamble with the pensions when playing with the "scabs of the planet" as you so appropriately named them. But you know what they say about 'birds of a feather, they flock together'. The stupidity of such a gamble resulted in their loss of the entire pension savings. But, a gamble the governement has thrown back on the taxpayers. Introducing the worst tax in history, HST. Destructive to every province where it was implemented. You need money to stimulate the economy. If the people do not have any money to spend then the economy will stall and fail. To those businesses who think they are going to get extra dollars from this, you are sorrily mistaken. No one willl have any extra money to even go out to restaurants, you will loose more business than gain with the HST. To introduce this to islanders who are over taxed, have one of the lowest standards of living, an almost destroyed middle class (what is left of it) with most islanders just barely making ends meet with many unable to do this. HST will cause further moves off the island for those who can afford to get out, (many have left), and that means more taxing of the few poor people who are left. The future looks gloomy. This is how anarchy resulted in other places, there is only so much suffering people can endure while the greedy affluent rich and their priviledged greedy friends live like Kings, multi-millionaires from the backs of the hard working and poor. There is a great deal of suffering among islanders at present. But, an ignorant greedy government and opposition cons don't even notice as they are too busy with feeding at the trough, paying off, and cover-ups...who has time to even look at the way their behavior is and has been harming islanders, example- their pay raise....they have lost their minds along with a total grip on the way islanders have had to resort to food banks due to hunger. And they give themselves a raise with all the extra perks and trips to nomads lands. Sick, sad, pathetic, inhuman group of disgraceful, shameful representatives of corruption.