(Pexels)

Federal tax changes come into effect as new year begins

Changes at the federal level will affect just about every Canadian, as well as small businesses

The new year brings with it tax changes at the federal level that will affect just about every Canadian, as well as small businesses.

One of the first changes workers will see is an increase in Canada Pension Plan premiums coming off their paycheques — the first of five years of hikes to pay for enhancements to the pension plan.

RELATED: Bills to grow bigger in 2019 for B.C. residents

Employment Insurance premiums, on the other hand, will drop by four cents for every $100 of insurable earnings.

Meanwhile, the small business tax rate is going down from 10 to nine per cent. But changes to how much so-called passive income a small business can hold are also coming into effect, which is expected to push some businesses into paying a much higher corporate tax rate.

Also in 2019, low income workers can qualify for an increase in the Canada Workers Benefit. But they will have to wait until 2020 to receive the extra money.

The federal government’s new carbon pricing system will also come into effect in provinces that don’t have carbon pricing mechanisms of their own, resulting in higher costs for fossil fuels by April, and direct rebates to partly offset the increased costs.

Conservative Opposition Leader Andrew Scheer is already gearing up to make it an issue leading to the October federal election, calling 2019 the year of the carbon tax.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

LETTER: Fort Langley driver lobbies for roundabout signalling

ICBC rules call for drivers to signal when exiting roundabouts.

South Langley community group wants to talk innovative housing

Brookswood-Fernridge Community Association invites people to a meeting about the future of housing.

GREEN BEAT: Opening ‘new roads’ in Langley makes cycling safer

HUB Langley pushed to ‘UnGap the Map’ and create more bike infrastructure throughout the community.

Langley Then and Now: A different view of Aldergrove

Check out the photo of Flag Day from 1926.

Langley’s Glass House Estate winery has new owners

Joseph Richard Group purchases family-owned business

VIDEO: 13-year-old killed in B.C. crash that involved five kids

The children range in age from six to 17.

Study says B.C.’s housing policies mean drug users can be targeted for eviction

The study involves 50 people living in Vancouver’s Downtown Eastside

Homicide team called in after three killed in Surrey car crash

Investigators ask public to come forward with information, dashcam video

Stranger climbs onto B.C. family’s second-floor balcony, lights fire in barbecue

Incident in Abbotsford terrifies family with two-year-old boy

UPDATED: Sailings resume after BC Ferries boat hits Langdale terminal

The Queen of Surrey is stuck on the dock, causing delays to Horseshoe Bay trips

Eviction halted for B.C. woman deemed ‘too young’ for seniors’ home

Zoe Nagler, 46, had been given notice after living in the seniors complex in Comox for six years

Coroner’s inquest announced for Victoria teen’s overdose death

Elliot Eurchuk was 16 years old when he died of an opioid overdose at his Oak Bay home

Vancouver Island home to B.C.’s luckiest lotto store

Five million-dollar winners have bought tickets from same Port Alberni corner store

B.C. MLAs call for no caps, no boundaries for ride hailing drivers

Minister Claire Trevena says Class 4 licence requirement will stay

Most Read