Saturday, October 29, 2022

Measuring Progressivity in Canada’s Tax System 2022

This a typical and widespread phenomenon that about 1/5 or 1/4 of taxpayers pay significantly more than 50% of all taxes is typical for other Western countries too, e.g. the U.S. 

Is it some kind of Robin Hood principle enforced by government or is it some form of expropriation called income redistribution?

I recently blogged here about the importance of flat income taxation.

"... However, high-income families already pay a disproportionately large share of all Canadian taxes. Indeed, the evidence shows that the top 20 percent of income-earning families pay nearly two-thirds (61.4 percent) of the country’s personal income taxes and more than half (53.0 percent) of total taxes.
In contrast, the bottom 20 percent of income-earning families are estimated to pay only 0.8 percent of all federal and provincial personal income taxes and 2.1 percent of total taxes in Canada. This is, in part, due to the progressivity of Canada’s tax system, where the share of taxes paid typically increases as income rises. ..."

Measuring Progressivity in Canada’s Tax System, 2022 | Fraser Institute

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