Canada Needs to Hike To Marginal Rate
October 30, 2015 Taxation in Canada
OTTAWA – Canada could more than double its top marginal tax rate, raising enough money to pay for universities and national infrastructure development.
Canada’s top marginal tax rate on personal incomes could be raised significantly, according to the results of a new study published on October 29th by the Canadian Centre for Policy Alternatives.
Currently, the top marginal income tax rate on personal incomes is set at 29 percent on incomes exceeding CAD 136 270 per year, however, the current administration has previously claimed that they would implement a new tax bracket of 33 percent for those earning more than CD 200 000.
The Centre claimed that the current rate, and the proposed rates, are too low, as in the past the top rate of tax on high income earners has been in excess of 50 percent.
Further, if the rate was raised to 65 percent, the resulting revenues of up to CAD 19.3 billion, could be used to pay for all tuition in colleges and universities in the country along with the federal infrastructure spending.
It was further claimed that the models prepared by the Centre show that even if the top tax rate was raised to 65 percent, it would not lead to emigration of the country’s job creators and entrepreneurs.
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