April 3, 2019

Canada’s income tax rates have become uncompetitive, and the economy will pay the price

A new report by the Fraser Insitute shows that Canada’s personal income tax rate is significantly higher than those of the U.S. in addition to other countries. In 2017, Canada’s top marginal income tax rates were the seventh highest top tax rate out of 34 industrialized countries. When people with higher incomes are taxed more, it results in less economic growth. As the government continues to raise the tax rate for potential spending, it could backfire for them with taxpayers responding by working less to avoid paying these taxes, resulting in less money paid to the government.

“Canada’s top marginal tax rates are punitively high, have put Canada in an uncompetitive position and discourage individuals from engaging in productive economic activity, ultimately hindering economic growth and prosperity”

Read more: https://business.financialpost.com/personal-finance/taxes/canadas-income-tax-rates-have-become-uncompetitive-and-the-economy-will-pay-the-price

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