Will personal income taxes increase in Canada?

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

1 Expert Answer

Don Scott

FCPA, FCA, Partner/Director of Tax Services,  Welch LLP

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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