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A federal proposal to allow income splitting for two-parent families would create more inequalities in the tax system rather than less, and it is a flawed idea, according to a report released today by the C.D. Howe Institute. In Income Splitting for Two-Parent Families: Who Gains, Who Doesn’t, and at What Cost? Alexandre Laurin and eminent tax scholar Jonathan Rhys Kesselman assess the economic…

The marginal effective tax rate on personal income has declined for most Canadians over the past decade, but has risen for many low-to-middle-income families with young children, which reduces their gains from earning more income, according to a report from the C.D. Howe Institute. In “What’s My METR? Marginal Effective Tax Rates Are Down – But Not for Everyone: The Ontario Case,” authors…

Increasing corporate income tax rates is the most costly way to raise government revenues, compared to other forms of taxation, according to a study released today by the C.D. Howe Institute. In What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds, authors Bev Dahlby and Ergete Ferede compare the effects of higher tax rates on provinces’ corporate income…

Quebec residents, on average, face the worst tax bite on take-home pay in the country, according to a report from the C.D. Howe Institute. In “What Has Happened to Quebecers’ Marginal Effective Tax Rates?” authors Alexandre Laurin and Finn Poschmann examine Quebecers’ marginal effective tax rates (METRs), which measure the impact of federal and provincial income taxes combined with the impact of…

Marginal effective tax rates (METRs) on working families’ personal income are generally lower in Canada’s Western provinces than in the rest of country, according to a report from the C.D. Howe Institute. In “Western METRics: Marginal Effective Tax Rates in the Western Provinces,” authors Alexandre Laurin and Finn Poschmann find the tax bite on each dollar of extra income for families with…

Expanding the Canada Pension Plan (CPP) is a risky route to addressing Canadian concerns about low incomes in retirement, according to a report released today by the C.D. Howe Institute. In “Don’t Double Down on the CPP: Expansion Advocates Understate the  Plan’s Risks,” author William B.P. Robson says advocates of an expanded CPP as a solution to retirement income worries too often promote…