Canada’s income tax rates have become uncompetitive, and the economy will pay the price
The Canadian economy will be affected and will have to pay the price of how uncompetitive the income tax rates have been transformed.
Likewise, Canada’s highest marginal tax rates are punitively high, have placed Canada in a non-competitive position and discourage people from engaging in productive economic activities, which ultimately hinders economic growth and prosperity. In such a way, the economy would have to pay the price. At least, these are the Fraser Institute’s observations, based on a study of Candá’s higher tax rates and how they compare to other jurisdictions. The findings were published in a new report published just in time for the next federal budget, prior to the elections, which will be delivered on March 19.
It should be noted that the report, entitled “The increase of personal tax rates in Canada and the fall in fiscal competitiveness”, calls on the federal and provincial governments to consider “reversing the trend towards higher marginal tax rates for people with income high “and likewise begin to reduce personal tax rates. The marginal tax rate is the tax rate you pay on the next dollar you earn.
Relevant aspects of the report
According to the Institute’s analysis, Canadian workers across the entire income spectrum, and across the country, pay taxes on personal gains that are significantly higher than those of Americans. Thus, the income of $ 50,000, $ 150,000 and $ 300,000 was obtained among the 61 provinces and states of Canada and the United States
The highest combined Canadian marginal tax rates compare unfavorably with those of EE. UU in addition to other industrialized countries. In fact, based on the study, it was discovered that of the 61 Canadian and American jurisdictions, Nova Scotia currently has the highest maximum marginal tax rate combined with 54 percent, followed closely by Ontario and Quebec. Nine Canadian provinces occupy the list of the 10 jurisdictions of Canada / USA. UU With the highest combined marginal tax rates and all of our provinces are among the top 12. In addition to this, the report found that there are 49 US jurisdictions. UU Canadian provinces.
Now, on the part of the report, it was found that not only at higher income levels are we not competitive. In fact, the highest tax rates in Canada often apply to lower income levels than in the US. UU In such a way, the combined rates are not competitive, even at these lower income levels.
Source: Jamie Golombek | National Post