February 22, 2024

Remember that regardless of the provincial tax cuts supplied by the Legault authorities, we’ll nonetheless pay a tax burden (federal and provincial) in 2023 that’s considerably greater than Ontario’s.

The CAQ authorities lowered the tax price of the primary two tax brackets by one share level, from 15% to 14% for the bracket as much as $49,275 and from 20% to 19% for the following bracket, bringing it to $98,540.

Sure, there’s some pent-up demand for Ontarians, however the hole stays very massive, amounting to as much as 25% extra taxes for middle-class taxpayers in Quebec.

This extra tax that we now have to pay goes solely to the coffers of the Quebec authorities.

In comparison with Ontario taxpayers, right here is the quantity of further taxes (in {dollars} and percentages) that Quebecers should pay this yr relying on their respective taxable earnings bracket (after fundamental private credit score, indexation and provincial discount of federal tax within the case of Quebec). ).

  • Earnings of $30,000: +$507 (+16.0%)
  • Earnings of $40,000: +$1154 (+22.3%)
  • Earnings of $50,000: +$1808 (+25.1%)
  • Earnings of $60,000: +$2485 (+24.9%)
  • Earnings of $70,000: +$3,132 (+24.2%)
  • Earnings of $80,000: +$3779 (+23.7%)
  • Earnings of $90,000: +$4,364 (+23.0%)
  • Earnings of $100,000: +$4,864 (+22.0%)
  • Earnings of $150,000: +$6,687 (+15.4%)
  • Earnings of $200,000: +$7743 (+11.6%)

Just for low-income taxpayers, which means these with taxable earnings of lower than $22,000, do Quebecers pay barely much less in taxes than Ontario residents.

Be aware that my calculations are based mostly on Quebec and Ontario tax tables ready by accounting agency Raymond Chabot Grant Thornton.

STANDARD OF LIVING

Finance Minister Eric Girard didn’t miss a beat in praising the narrowing of the wealth hole between Ontario and Quebec that has occurred for the reason that CAQ got here to energy. By prosperity right here we imply actual GDP per capita.

The Legault authorities’s massive financier due to this fact used “his” current finances replace to remind us that the hole in dwelling requirements between Quebecers and Ontarians had shrunk from 16.1% in 2018 to 13.5% in 2022. And if the pattern continues, Minister Girard predicts that the hole will fall to 13.1% in 2023 and 12.3% in 2024.

The minister particularly emphasised that below the earlier Liberal authorities of Philippe Couillard from 2015 to 2018, the common annual development in our way of life (+1.3%) was barely decrease than that of Ontarians (+1.4%).

Between 2019 and 2022, below the present CAQ authorities, the rise in dwelling requirements in Quebec continued at an annual price of +0.7%, whereas in Ontario we noticed actual GDP per capita development of simply +0.7 % restricted to standstill or nearly standstill was 0.1%.

Nevertheless, the minister expects an financial slowdown in 2023 and 2024, which can result in a short lived decline in actual GDP per capita. “However,” he provides, “Quebec’s progress in catching up with Ontario’s dwelling requirements ought to proceed over the following two years.” For what? It’s because the decline in actual GDP per capita will probably be smaller in Quebec.

Phrase from Minister Eric Girard: “The federal government intends to proceed its efforts to extend the potential of Quebec’s economic system with a view to shut the wealth hole with Ontario.”

Of their current examine Incursion amongst indicators of dwelling requirements and well-being, researchers Suzie St-Cerny and Luc Godbout from the Analysis Chair in Taxation and Public Finance on the College of Sherbrooke report that Quebec’s actual GDP per capita will improve in 2022 in comparison with Canada, a lower of 15.2%.

In comparison with actual GDP per capita in america, our decline is big at 52.3%. And in comparison with superior OECD economies, it’s 23.1%.

As you may see, there’s room for enchancment in actual GDP per capita.