Canadian families under increasing financial pressure: Angus Reid
middle class tax
While Canada’s lowest-income households are more likely to struggle, middle-income people are feeling the burden of higher taxes.
A separate report this week from the Fraser Institute noted that the vast majority of middle-class Canadian households pay a higher federal personal income tax because of tax changes made by the federal government.
Looking at data from 2015 onwards, the study found that, while the second-lowest personal income tax rate was reduced from 22% to 20.5% in 2015, a series of tax credits extended the income-sharing for couples with young children. which more than offset the savings from the reduction in the tax rate.
As a result, the study found that 86 percent of middle-class households experienced an average $800 increase in their federal personal income tax burden annually.
“By promoting one income tax change and demeaning others, Ottawa paints an incomplete picture of the overall impact of its tax changes, which have imposed a high personal income tax bill on the vast majority of middle-class households,” said Jake Fuss. , said senior economist at the Fraser Institute and co-author of ‘Measuring the impact of federal personal income tax changes on middle-income Canadian households from 2015’.