WINNIPEG – Manitobans can say goodbye to bracket creep.
The provincial government will be getting rid of it starting Jan. 1.
Bracket creep happens when people get cost of living increases in their incomes, and then they get pushed into higher tax brackets. With income tax brackets staying the same, people pay slightly higher taxes every year.
To offset this, the government will begin adjusting tax brackets depending on inflation rates in the new year.
The change comes after years of campaigning by the Canadian Taxpayers Federation.
“By ending bracket creep, Manitobans will no longer get hit with tax increases every January 1st just because inflation rises,” said Todd MacKay of the CTF.
The CTF adds that the change will “stop an additional $24.4 million from being sucked out of Manitoban’s wallets next year.”
Several other provinces, including Saskatchewan, already have the tax bracket to inflation system in place.