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.
Canadian families in the top 20 per cent pay 55.9 per cent of all federal, provincial and municipal taxes.
In 2017, the average Canadian family with two or more people will pay $47,135 in total taxes.
In 2013, the top 10 per cent of tax-filers earned 35 per cent of Canada’s total income yet paid 54 per cent of federal and provincial income taxes.
No one really thinks there shouldn’t be any taxes. After all, how would governments fund important public services that form the foundation of our economy? Think of services such as protecting property, building infrastructure, upholding the legal system, to name a few.
There has been much handwringing over the claimed disappearance of the middle class. From a bestselling international tome to domestic tax-and-spend types who think higher taxes will create more middle-income earners, there is no shortage of those who over-focus on redistribution and underestimate the benefits of opportunity.