In delivering his government’s first budget, Finance Minister Bill Morneau (pictured above) said “we raised taxes for the top one per cent. It’s only fair to ask those who can afford it to pay a little more so that we can help those who need it.”
Sounds simple enough—take from some, give to others in need. But as the late American writer and scholar H. L. Mencken said, “there is always a well-known solution to every human problem—neat, plausible, and wrong.”
In 2016, Minister Morneau increased the top personal income tax rate to 33 per cent from 29 per cent on incomes above $200,000. The Liberals originally expected to generate $2.8 billion from the tax increase. However, they scaled that estimate back to $2.0 billion one month after being elected in November 2015—with no mention from the government on how smart successful Canadians might respond to the tax change.