The CTF says middle class, wealthy pay most tax
Those who believe Canada’s middle class and wealthy should pay a greater share of taxes are wrong.
That’s according to a new report from the nonprofit Canadian Taxpayers Federation which says that while those earning $100K+ made up just 8.4% of tax filers in 2014 and earned 33.2% of all income earned, they paid more than half of income taxes collected by the federal and provincial governments.
Those that earn more than $250K contributed 21% of Ottawa’s tax income despite accounting for just 1% of all tax filers.
“Any notion that middle-class and wealthier Canadians do not pay their “fair share” is incorrect. They pay most of the income tax,” wrote economist and report author Mike Milke.
Milke points out that a third of tax filers in 2016 paid no income tax at all, while 87% of federal and 88% of provincial income taxes are paid by those earning at least $50,000.
Among the conclusions drawn by the study are that to enable lower taxes for low income and middle income earners, the provinces must attract more high income earners.
“It is easier to levy lower taxes overall if a province has plenty of six-figure income earners,” Milke says.
The figures show that Alberta had the highest ratio of six-figure earners in 2014 nationwide. The province’s single-rate tax meant that these high earners accounted for 49.2% of all income and paid 61.8% of provincial income tax.
Milke’s study says that those earning below $100K in higher taxed provinces such as Quebec paid a larger share of overall income tax; 94.4% of tax filers paid 51.6% of the tax.
That’s according to a new report from the nonprofit Canadian Taxpayers Federation which says that while those earning $100K+ made up just 8.4% of tax filers in 2014 and earned 33.2% of all income earned, they paid more than half of income taxes collected by the federal and provincial governments.
Those that earn more than $250K contributed 21% of Ottawa’s tax income despite accounting for just 1% of all tax filers.
“Any notion that middle-class and wealthier Canadians do not pay their “fair share” is incorrect. They pay most of the income tax,” wrote economist and report author Mike Milke.
Milke points out that a third of tax filers in 2016 paid no income tax at all, while 87% of federal and 88% of provincial income taxes are paid by those earning at least $50,000.
Among the conclusions drawn by the study are that to enable lower taxes for low income and middle income earners, the provinces must attract more high income earners.
“It is easier to levy lower taxes overall if a province has plenty of six-figure income earners,” Milke says.
The figures show that Alberta had the highest ratio of six-figure earners in 2014 nationwide. The province’s single-rate tax meant that these high earners accounted for 49.2% of all income and paid 61.8% of provincial income tax.
Milke’s study says that those earning below $100K in higher taxed provinces such as Quebec paid a larger share of overall income tax; 94.4% of tax filers paid 51.6% of the tax.
