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Fraser Institute: Most low-income families face higher income taxes

Fuss is the co-author of the impact of the federal income tax change on Canadian households in 2022, the lowest 20 percent of earners, which analyzed cuts in the second-lowest tax rate from 22% to 20.5%.

However, with the end of the income split for couples with children under 18, and multiple tax credits, these combined changes more than offset the lower tax rate.

For 6 in 10 households with children under 18, their federal tax burden in 2019 (the lowest 20% of income earners) was less than $70,991 on average, $233 higher than in 2015.

“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 higher personal income tax bill on the majority of low-income families with children,” Fuss said.

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