I was thinking about the new proposed Liberal government’s tax reforms, which they claim are unfair to the middle class. Instead of simply accepting this as gospel, I decided to find out how much tax, higher income earners are actual paying.
As reported in the Canadian Press: “A study from the Canadian Taxpayers Federation, which uses data from 2014, finds that people who make more than $100,000 account for just 8.4% of taxpayers but pay 52% of the total tax bill. And those with incomes of $250,000 or higher represented 1% of all tax filers in 2014, and paid 21.1% of all federal income tax.”
“Prime Minister Justin Trudeau recently claimed that the middle class pay too much in taxes and the wealthiest don’t pay enough,” says study author Mark Milke, in a release. He’s referring to comments made by Trudeau earlier this month after a caucus meeting in Kelowna, B.C.
“The middle class could always use a tax break. But it is false to say higher-income Canadians do not pay their fair share,” says Milke.
I am willing to bet that this information reflects more accurately what the facts are, given that the Canadian Taxpayers Federation is a reliable and objective source of information.
Have a great day.
Robert Roby
Senior Wealth Advisor