Canada's Rich Pay Lower Tax Rate Than Canada's Poor

Tax cuts during the past decade have disproportionately lined the pockets of Canada's most affluent families, according to a new tax study by the Canadian Centre for Policy Alternatives (CCPA). The study found that the top one per cent of families in 2005 paid a lower total tax rate than the bottom 10 per cent of families.

"Canada's tax system now fails a basic test of fairness," said Marc Lee, a senior economist with the CCPA and author of the study. "Tax cuts have contributed to a slow and steady shift to a less progressive tax system in Canada."

The study found that Canada's tax system is delivering larger savings for high income families. This adds to the growing financial gap between high income families and other Canadians.

"Most Canadians will be surprised by these findings because they believe we have a progressive tax system - but looking at all taxes combined, that's no longer the case."

Key findings of the CCPA study include the fact that the richest one per cent of taxpayers saw their tax rate drop by four percentage points between 1990 and 2005. The poorest 20 per cent of taxpayers paid three to five per cent more in taxes. Middle-income families pay about six per cent more in total taxes than a family in the top one per cent.