Eighty-one per cent of middle-class families in Canada now pay higher income taxes.
When taxes on investment returns are very high, the negative consequences, compounded over time, can be dramatic.
The Wynne government’s budget raises most middle tax rates and adjusts income thresholds.
The Alberta government recently abandoned the province’s single 10 per cent tax rate on personal income in favour of a five-bracket system with a top rate of 15 per cent—a move that will reduce Alberta’s competitiveness and cause undue harm on an already struggling economy.
A profound, if partial, consensus on taxes and economic incentives seemed to be reached amongst the main political parties in Canada that has been almost completely ignored. The consequences for policy are remarkable if this consensus is properly understood and broadly applied.