Canada's Rich Not Contributing Fair Share in Taxes: CCPA Study

CANADA'S RICH NOT CONTRIBUTING FAIR SHARE IN TAXES: STUDY

TORONTO – More than a decade's worth of tax cuts have disproportionately lined the pockets of Canada's most affluent families, says a new tax study by the Canadian Centre for Policy Alternatives (CCPA).

The study finds the top 1 percent of families in 2005 paid a lower total tax rate than the bottom 10 percent of families.

"Canada's tax system now fails a basic test of fairness," says Marc Lee, senior economist with the CCPA's B.C. office and author of the study. "Tax cuts have contributed to a slow and steady shift to a less progressive tax system in Canada."

The study, which is the first comprehensive review of tax changes at all levels of government in Canada within the past 15 years, finds the system is delivering larger tax savings for high income families. This reinforces the growing gap in market incomes between high income families and the rest of Canadians.

"Most Canadians will be surprised by these findings because they believe we have a progressive tax system – but looking at all taxes combined, that's no longer the case."

The study, Eroding Tax Fairness: Tax Incidence in Canada, 1990 to 2005, is available at http://nl1630.policyalternatives.ca.