“The fears policymakers had in 1917 when the personal income tax was introduced — that governments would become dependent on it and that it would hurt our competitiveness — have all come true 100 years later,” said William Watson, Fraser Institute senior fellow and co-editor of The History and Development of Canada’s Personal Income Tax: Zero to 50 in 100 Years.Released Thursday – and ahead of Canada’s April 30 tax deadline – the collection of essays also compares Canada and the United States, where 42 of the country’s 50 states have a lower combined federal-state top rate than British Columbia, the province with the lowest combined rate.
That low combined rate is 47.7% in BC. Here in Ontario, the combined top rate is 53.5%.
It's amazing how quickly the financial situation in Ontario has deteriorated in just the past two years. A few examples:
- Income tax rates have increased.
- The electricity rates have skyrocketed -- especially in rural parts.
- The real estate market is out of control. In my area, prices have jumped by 33% in one year!
- The TFSA annual limit of $10,000 was reduced to $5,500. For comparison, in the UK, the annual limit for an ISA account is a staggering $33,500! Imagine the ability to save and invest all that money (every year!) without worrying about the capital gains tax.
Of course, the Liberals are in power at both the provincial and federal level. So, all this isn't a surprise.