Will personal income taxes increase in Canada?

Will personal income taxes increase in Canada? Will personal income taxes increase in Canada?

1 Expert Answer

Certainly the current government has made much of protecting the middle class, so any personal tax rate hike would be directed to those who can afford to “pay a little more”. The highest combined federal/provincial tax rate now nears or exceeds 50%. Statistics have shown that once that 50% line is crossed, tax revenue generation does not meet expectations – the incentive to avoid paying that rate of tax becomes an issue. Also, higher taxes on higher income taxpayers provides another incentive – move from Canada to a lower tax regime – one thing 2020 has reinforced is the ability to work from anywhere.

Answers by Welch LLP

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