Why are Canadian Tax Rates Less Progressive than the US?
I was actually quite surprised at this, since we're supposed to be more politically progressive than the US, but when it comes to income taxes we definitely aren't. And this is counting the Bush tax cuts. Rates, rounding to the nearest thousand:
Canada
$0-$39,000: 15%
$39,000 - $78,000: 22%
$78,000 - $126,000: 26%
>$126,0000: 29%
United States
$0-$8000: 10%
$8000 - $33,000: 15%
$33,000-$79,000: 25%
$79,000 - $165,000: 28%
$165,000 - 358,000: 33%
>$358,000: 35%
Canada's also less progressive than the United States in taxation because of the GST, given that sales taxes are inherently regressive.
On the income taxes, two things stand out. One, the US has a lower rate at the very bottom; that's may not be very signficant, though, depending on how much you can deduct at that level if you don't make much. More significantly, Canadian rates max out at $126,000. I think we could easily add one or two higher rates - say one at $300,000 for ~35%, one at a million for ~40%. That's moderate - actually lower than what the US has.
If you're a conservative, use that to get rid of the debt or shave another point or half-point off the GST, or cut the lower-bracket rates. If you're a liberal, use it to pay for better health, education, etc. Or give it to the provinces to use on ending homelessness. Either way, the rich are still rich and everyone benefits. The increase would affect maybe 2% of the population.
Canada
$0-$39,000: 15%
$39,000 - $78,000: 22%
$78,000 - $126,000: 26%
>$126,0000: 29%
United States
$0-$8000: 10%
$8000 - $33,000: 15%
$33,000-$79,000: 25%
$79,000 - $165,000: 28%
$165,000 - 358,000: 33%
>$358,000: 35%
Canada's also less progressive than the United States in taxation because of the GST, given that sales taxes are inherently regressive.
On the income taxes, two things stand out. One, the US has a lower rate at the very bottom; that's may not be very signficant, though, depending on how much you can deduct at that level if you don't make much. More significantly, Canadian rates max out at $126,000. I think we could easily add one or two higher rates - say one at $300,000 for ~35%, one at a million for ~40%. That's moderate - actually lower than what the US has.
If you're a conservative, use that to get rid of the debt or shave another point or half-point off the GST, or cut the lower-bracket rates. If you're a liberal, use it to pay for better health, education, etc. Or give it to the provinces to use on ending homelessness. Either way, the rich are still rich and everyone benefits. The increase would affect maybe 2% of the population.