"Once you've reached the annual maximum, the deductions stop, so you effectively get a pay raise around half-way through the year. The problem is that, if you get used to this increased income, it's a bit of a shock to the system when the deductions start again in January."This statement makes one fairly major assumption, that an individual's annual income is high enough to max out these deductions. The annual maxima for CPP and EI are based on employment income of $41,100 and $44,900, respectively. Therefore, if you make less than $41,100, then you'll be dealing with these deductions for the entire year, and never see the mid-year "raise" I mentioned.
As the commenter pointed out, more than half of Canadians have an income below this $41,100 threshold, so complaining about the "pay cut" I take every January is very insensitive: I'm essentially complaining about the high salary I make.
That was not my intent when I wrote the post; I was simply trying to look at the start of 2008 and all of the potential considerations that come with it. I wasn't really meaning to "complain" about the change, but rather take it as an opportunity to rein in our budget. However, I realize now that the post did carry a tone of arrogance and entitlement, and I would like to apologize for that.
Tina at Money Smart Life posted recently on the blessing of income tax, and I actually agree with this view. I'm extremely grateful for the opportunities that my job and my salary provide for me. My income gives me the means to correct my past mistakes (for which I am entirely responsible), and I am certainly not looking for pity. I just failed to get that across in this morning's post.