Premier Jason Kenney -- The Canadian Press

By Josh Hall

CTF Kenney

Taxpayers Federation wants Kenney to reverse course on ‘bracket creep’

Dec 29, 2019 | 11:17 AM

Red Deer, AB — The Canadian Taxpayers Federation is calling out Alberta Premier Jason Kenney and the UCP government for what they call a “sneaky, backdoor tax grab.”

The CTF says Kenney is reaching deep into taxpayers’ pockets with what’s known as ‘bracket creep.’

“Bracket creep happens when governments don’t move tax brackets with inflation and taxpayers automatically get bumped into a higher tax bracket even though we can’t actually afford to buy more,” says Franco Terrazzano, the CTF’s Alberta director. “Bracket creep was introduced in the 2019 Alberta budget.”

The CTF’s New Year’s Tax Changes report estimates that bracket creep could cost a two-income household between $70 and $222 in 2020, depending on income level.

They note however, that once federal income-related tax changes are included, all Albertans earning under $200,000 will still pay less taxes in the year to come. According to the CTF’s report, Alberta will be one of five provinces along with Saskatchewan, Ontario, PEI, and Nova Scotia, to employ bracket creep in 2020.

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The CTF also cites a 1997 column written by Kenney and published in the Calgary Herald which refers to bracket creep as a “hidden and regressive tax grab.”

“Voters didn’t elect Kenney to put in a sneaky backdoor tax grab, Kenney was elected to clean up the budget mess without raising taxes,” says Terrazzano. “Kenney should take his own advice and immediately cancel the hidden bracket creep tax hike.”