Canadians at all levels of income pay more tax than residents in most other OECD countries around the world, according to a new report.
The study, “Canada’s Rising Personal Tax Rates and Falling Tax Competitiveness,” published by the Fraser Institute, said personal income tax rate increases at both the federal and provincial levels have made Canada less competitive compared with other countries in the Organisation for Economic Co-operation and Development (OECD).
“In 2022 (latest year of available international data) Canada had the 5th highest combined top tax rate out of 38 countries,” the report said. “This indicates that in 2022, while Canada’s top tax rate was more competitive than in four countries, it was uncompetitive compared to most OECD countries including the United States, the United Kingdom, and other English-speaking countries such as Australia.”