May 19, 2024
Canada’s top 10% of earners pay 54% of taxes — but here’s the kicker, many are just middle-class
Being in the top 10% of earners in Canada doesn’t mean you are wealthy. In fact, in 2017, any Canadian making $96,000 (or more) was in that group.
Being in the top 10% of earners in Canada doesn’t mean you are wealthy. In fact, in 2017, any Canadian making $96,000 (or more) was in that group.

Good Morning!

The top 10% of Canada’s earners make 34% of the country’s income, but are paying 54% of income taxes, says a new essay that questions the premise that the “rich” don’t pay enough tax.

“Despite common misperceptions and misleading rhetoric, our top 10 per cent of income-earners pay more than half of Canada’s income taxes — and this group includes people that few would consider wealthy,” said Philip Cross, a former chief economic analyst at Statistics Canada, in the essay released by the Fraser Institute.

The federal government and 7 of Canada’s 10 provinces in recent years have raised tax rates for upper-income earners. Cross says in 2017, the latest year of comparable data, the top 10 per cent of income-earners earned about a third of total income but paid more than half of the country’s total income taxes.

Cross says that gap has always been there, but it has grown wider over the past three decades. Between 1982 to 2017, the share of income earned by the top 10% rose 13.2% while their share of income taxes rose 22.4%.

And here’s the kicker. Being in the top 10% of earners in Canada doesn’t mean you are wealthy. In fact, in 2017, any Canadian making $96,000 (or more) was in that group, Cross says.

“Many Canadians, including those advocating for higher taxes, might be surprised to learn what our top 10 per cent of income-earners looks like — many of them consider themselves middle class,” Cross said.

[…]

See Also:

(1) Ban Huaweii from Canada’s 5G system

(2) Federal ministers write off $200M loan — but department won’t say what and why

(3) ‘Lives are at risk’: Brampton declares health care emergency, demands funds to stop ‘hallway medicine’

(4) Provinces seek federal help to battle rural crime: ‘We’ve got people sleeping with axes under their beds’

(5) Saint-Jérôme hospital ER brawl leaves 8 employees injured

Loading