The Fraser Institute has just published a report that should shock all Canadians. It reports that citizens of the country are being hunted down by their own government, and are forced to pay significantly higher tax rates than their American neighbours. The study compared Canadian provinces with American states and Washington, D.C., and revealed the horrifying reality of what the Canadian population is dealing with.
Led by Jake Fuss, the director of fiscal studies at the Fraser Institute, he found that Canadian provinces take up nine out of the top ten tax rate spots in North America – which means they boast having some of the highest combined marginal income tax rates on the entire continent. This means as Canadians earn more money, they have to hand over a growing percentage to our nanny state.
“Canadians are currently paying significantly higher tax rates than their American counterparts at all income levels,” stated Fuss during an interview. “At a time when the national economy is stagnating and there’s a need to improve our economic prospects, one policy option that could be targeted is reducing Canada’s personal income tax rates.”
What many people don’t realize is how these high taxes affect our nation’s ability for economic growth. When comparing personal income taxes between US jurisdictions and Canadian provinces, we can see that we aren’t competitive with them in any way – meaning it will be tough to attract skilled individuals such as entrepreneurs or doctors if they can simply move to another country for lower fees.
“Jurisdictions with relatively lower taxes generally enjoy a competitive edge and attract these highly productive individuals,” said Fuss. “So you’re at a significant disadvantage when you have higher tax rates than other jurisdictions.”
In fact, highly skilled workers tend to move away from places where there is too much government interference – such as Canada – so this could hurt us long-term if talented entrepreneurs choose different countries due to lower fees.
Our recent poll on the Scoop Canada YouTube Channel tackled the hot topic of whether lowering tax rates would stimulate economic growth. The results were astonishing, almost every respondent agreed that reducing taxes would indeed benefit the economy. Join the ongoing conversation on our Scoop Canada YouTube channel and cast your vote here to make your voice heard on this crucial issue!
Fuss went on to state, “Those jurisdictions are now getting the tax revenues from those highly skilled workers. They’re also getting the benefits in their economy from having those entrepreneurs, professionals, business owners, doctors and engineers.” This horrible revelation is only worsened by the fact that Canadian governments have recently hiked up taxes within the country.
Between 2009 and 2023, provinces have seen top marginal rates rise; Newfoundland and Labrador has seen it spike by 10.3% – which changed them from one of the lowest combined top rates to highest in 2023.
Ontario and Quebec also had significant increases with a 7.1% raise for Ontario and a 5.1% increase for Quebec between their combined top income tax rates.
What’s worse is that there’s no end in sight for these increases either – at least until Canada’s citizens say enough is enough.
With so many people struggling during times of economic uncertainty, especially when we’re routinely told that the rich should be paying more money towards government services, this new revelation about how much Canadians pay compared to Americans could spell trouble for our current politicians who continue to squeeze us financially.
The Fraser Institute’s report acts as a wake-up call to policymakers, as they’re pleading with Canada’s government to lower fees before it’s too late – otherwise all our best talent will move south for good.
Last Updated on by Alshaar Ansari