The government permanently increased the tax rate for banks and life insurance companies to 16.5 per cent on profits over $100 million.
Government tax revenues can increase even though the inflation-adjusted incomes of most Canadians do not.
Sixty per cent of the bottom 20 per cent of taxpaying families with children now pay $233 more (on average) in federal income taxes.
The top 20 per cent pays nearly two-thirds of all federal and provincial income taxes.
The large gap in tax rates means there’s a strong incentive for those affected to respond.
The federal Liberals plan to increase the top federal personal income tax rate.
The new Trudeau government plans to raise personal income taxes on the top one per cent of Canadian income-earners in order to fund a personal income tax decrease on the middle class.