High-income earners paid $4.6-billion less in taxes in 2016 despite higher rate for top 1 per cent
The Liberal government’s tax on Canada’s top 1 per cent failed to produce the promised billions in new revenue in its first year, as high-income earners actually paid $4.6-billion less in federal taxes.
The Liberal Party’s campaign platform said a new top tax bracket would raise nearly $3-billion a year, but an analysis of recently released data from the Canada Revenue Agency (CRA) shows the expected benefit didn’t materialize.
The latest available tax records show that revenue from Canadians earning about $140,000 or more – which had previously been the fourth and highest tax bracket – dropped by $4.6-billion in 2016, the first full year that the Liberal tax changes were in effect. Further, 30,340 fewer Canadians reported incomes in that range for 2016 compared with the year before.