canadian income tax

Ten year-end facts Canadians need to know

Prime Minister Trudeau is on track to increase per-person federal debt more than any other prime minister in Canadian history who didn’t face a world war or economic recession.

Canada’s health-care system fails to account for senior migration

Almost three-quarters of Canada’s total tax burden is paid by the working-age population.

Seniors migration cost British Columbia $7.2 billion in health-care expenses

Average per person spending on health care for Canadians over 70 is $13,797.

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The Impact of Interprovincial Migration of Seniors on Provincial Health Care Spending


  • The dominant role played by government financing in Canada’s single-payer health care system has led to an oversight related to demographics: senior migration.
  • Health care spending is skewed towards the first year of life and after retirement. The average amount spent on health care by governments in a person’s first year of life is $10,800. For those between the ages of 65 to 69, that amount is $6,424, but it rises to $13,797 for those over 70.
  • Taxes, on the other hand, start out quite low and then climb steadily to one’s prime earning years (56-63), before beginning to decline as one nears and then enters retirement.
  • When a senior migrates from one province to another, they are likely to have paid the bulk of their lifetime taxes in one province but will consume the majority of their health care in another.
  • Six provinces experienced a net inflow of seniors between 1980 and 2016: BC, AB, ON, NB, NS, and PEI. The remaining four provinces (SK, MB, QC, and NL) experienced a net outflow of seniors. British Columbia recorded the greatest inflow (40,512), while Quebec experienced the greatest outflow (37,305).
  • Based on average annual health care costs by age, British Columbia had the largest cost at $7.2 billion (in 2017 dollars) while Quebec had the largest savings at $6.0 billion.
  • A partial analysis of potential tax revenues provided by migrating seniors suggests that BC’s costs could have been mitigated by as much as 36.3 percent while Quebec’s savings could have been reduced by as much as 19.2 percent.

Trudeau government tax policies hurting families striving to join middle class

Increased government transfers make families more reliant on government.

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Effect of Federal Income Tax Changes on Canadian Families Who Are in the Bottom 20 Percent of Earners


  • Since coming into office in 2015, Prime Minister Justin Trudeau’s government has made several major changes to the federal personal income tax system. This report examines how those tax changes affect Canadian families with children, focusing particularly on families who are in the bottom 20 percent of income earners.
  • Specifically, the report measures the number and percentage of families in this income group who are paying higher personal income taxes due to the federal government’s changes— and how much more they are paying.
  • Among the bottom 20 percent of income earning families with children, 406,000 (of a total 660,000) are paying more federal income tax following the changes. Specifically, 61 percent of families who are the bottom 20 percent of earners are paying more—$269 more on average.
  • Families in the bottom 20 percent of earners benefitted very little from the federal government’s reduction to the second lowest personal income rate. This is because most of the individuals in lower income families earn too little income to qualify for the tax reduction, which starts at incomes of $45,916.
  • However, many families in this group pay more income tax because they no longer benefit from income splitting and other tax provisions (including tax credits for children’s fitness, public transit, and education and textbooks) which were eliminated by the Trudeau government.
  • For the 61 percent of families in the bottom 20 percent who are paying more overall income tax due to federal changes, the tax rate cut amounts to an average tax reduction of just $22. By contrast, the elimination of income splitting represents an average increase of $154, while the elimination of other tax credits amounts to an average tax increase of $148.
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