Just to start off, any country that spends the post-Cold War period eroding its progressive tax system so that the richest 1% of families pay a lower tax rate than the poorest 10% of families is just offensive. And I don’t care about the relative dollar value of tax paid by these two groups. The principle itself is regressive and abhorrent.
Welcome to Canada!
Welcome also to the reality of federal Liberal and Conservative governments. It doesn’t matter which is in, the rich get a windfall and the poor subsidize it.
The latest CCPA study is full of shock and further offense:
- Provincial tax cuts are the key culprit for the increasingly regressive nature of Canada’s tax system but the problem has been exacerbated at the federal level with billions of dollars worth of post-2000 tax cuts.
- The richest one percent of taxpayers saw their tax rate drop by four percentage points between 1990 and 2005.
- Most Canadians saw their tax rate fall by two percentage points of income, but not so for the poorest 20 percent of taxpayers, who pay three to five percentage points more in taxes.
- Middle-income families pay about six percentage points more in total taxes than a family in the top 1 percent.