UNHAPPY HOUR: MP pay hike and alcohol tax increase take effect Tuesday

As of April Tuesday, MPs will receive automatic pay raises while Canadians will see another increase in alcohol taxes, sparking criticism from the Canadian Taxpayers Federation (CTF).

“Party leaders owe taxpayers answers to these two questions: Why do you think you deserve a pay raise, and why should Canadians pay higher taxes on beer and wine?” said Franco Terrazzano, CTF Federal Director.

“Politicians don’t deserve a raise while millions of Canadians are struggling.”

MPs receive automatic pay raises each year on April 1, based on the average increase in union contracts for large corporations.

The CTF estimates that tomorrow’s raise will add $6,200 to the salaries of backbench MPs, $9,200 for ministers, and $12,400 for the prime minister.

After the increase, backbench MPs will earn an estimated $209,300 annually, ministers $309,100, and the prime minister $418,600.

Meanwhile, the alcohol escalator tax, which increases excise taxes on beer, wine, and spirits annually without a parliamentary vote, will rise by 2% tomorrow.

Beer Canada estimates the increase will cost taxpayers about $40 million this year. Since its introduction in 2017, the tax has added more than $900 million in costs.

“Politicians are padding their pockets on the same day they’re raising beer taxes, and that’s wrong,” Terrazzano said.

“If party leaders want to prove they care about taxpayers, they should stop the MP pay raises. And if party leaders care about giving Canadian brewers, distillers, and wineries a fighting chance, it’s time to stop hitting them with alcohol tax hikes year after year.”

The CTF released a Leger poll indicating that 79% of Canadians oppose the MP pay increase.