Ontario’s Tax on the Rich: Grasping at Straw Men
Ontario’s new “tax on the rich” will likely create more economic costs than benefits, according to a report released today by the C.D. Howe Institute. In “Ontario’s Tax on the Rich: Grasping at Straw Men,” Associate Director of Research Alexandre Laurin finds taxpayers’ behavioural responses will reduce revenue over the long run by more than the province can expect to collect from the tax hike.
“Many studies have shown that, on average, tax increases have a negative effect on economic activity and incomes, especially for high-income earners who tend to be more responsive to tax changes,” said Laurin.