Canada’s rich taxed less than in the U.S and should pay more: Study

Canada's rich taxed less than in the U.S and should pay more: Study
by: CCPA

OTTAWA—Canada should raise federal personal income tax rates on the rich to close the growing income gap and to bring them more in line with those in the U.S., says a study released today by the Alternative Federal Budget project of the Canadian Centre for Policy Alternatives.

The study, by economist Andrew Jackson, points out that Canada's top federal tax rate is considerably lower than the U.S.: The top U.S. tax rate is 35% on incomes over $326,000 and 33% on incomes over $150,000; Canada's top federal income tax rate is 29% on incomes of over $116,000.

"We're heading into the holiday season—the season of charitable giving—where we'll hear a lot about how those who have should give to others," says Jackson. "But charity isn't enough. Instead of continuing to deliver more tax cuts to the rich in the name of competitiveness, Canada should make sure that the wealthy contribute their fair share in taxes."

The study marshals evidence showing that income inequality is growing rapidly as Canada's richest 1% take home an increasing share of pre tax income, and have also been given a disproportionate share of recent income tax cuts.

"This is disturbing because a progressive income tax is a particularly important way to promote fairness in the North American context, and because only higher tax rates for the very rich can stop that elite group from growing away from the rest of society."

Read the entire article here: http://www.policyalternatives.ca/News/2007/12/PressRelease1778/index.cfm?pa=F4FB3E9D