National
Low and middle income Canadians hit hardest by high marginal effective tax rates
From the Fraser Institute
By Philip Bazel
A new study published by the Fraser Institute today finds that Canadian families and individuals with annual incomes between $30,000 and $60,000 face marginal effective tax rates near or above 50%.
Among the provinces, BC has the lowest tax rates of 38%.
Ontario has a rate of 50% – and high-income families at $300,000+ are taxed lower at 44%.
Families with modest income brackets consistently face disproportionately high marginal effect tax rates, raising questions of fairness and efficiency in the tax and transfer system.
Dig into the numbers and see how your province placed here.
Canadian families and individuals with annual incomes between $30,000 and $60,000 face marginal effective tax rates near or above 50 per cent, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Canadian families with modest incomes face high marginal effective tax rates, often higher rates than Canadians in top income tax brackets,” said Jake Fuss, director of fiscal studies at the Fraser Institute, which published Marginal Effective Tax Rates for Working Families in Canada by Philip Bazel, an associate at the School of Public Policy at the University of Calgary.
The marginal effective tax rate (METR) measures the personal income taxes paid (federal and provincial) and the reductions in government benefits, resulting from earning an extra dollar. For example, the Canada Child Benefit, a monthly payment, is reduced as family income increases. In other words, the effective tax rate is the combination of taxes you pay and benefits you lose as you make more money.
Crucially, across the provinces, individuals and families with relatively modest incomes face the highest rates. This unfortunately creates a disincentive for earning additional income, as the financial benefits are significantly offset by increased taxes and/or reduced government benefits.
Canadian families with modest incomes, particularly those earning between $30,000 and $60,000, face the highest marginal effective tax rates. For example, families earning a household income of $60,000 are subject to an effective tax rate of 50 per cent or higher in every province. In Quebec, the METR is as high as 67 per cent at this income level.
Among provinces, BC has the lowest rate (38 per cent) averaging across the $30,000 to $60,000 bracket. Ontario’s rate for the $30,000 to $60,000 bracket is 6 percentage points higher (50 per cent) than high-income families at $300,000 or higher (44 per cent).
“Families with modest income brackets consistently face disproportionately high METRs, raising questions of fairness and efficiency in the tax and transfer system,” Bazel said.
“These findings highlight the need to prioritize METR reductions for low-income families.”
Author:
From LifeSiteNews
The Canadian federal government will not be looking to overturn via a constitutional tool the recent Canadian Supreme Court ruling that a mandatory one-year sentence for possessing or accessing child pornography is “unconstitutional.”
Earlier this week, Justice Minister Sean Fraser told the media that the federal government will not override the Supreme Court ruling via the use of the notwithstanding clause.
Fraser claimed that there are “other solutions” that can be used to protect children, including new laws but did not give any concrete examples.
As reported by LifeSiteNews, on October 31, the Supreme Court of Canada ruled that a mandatory one-year sentence for possessing or accessing child pornography is “unconstitutional” and said that it is now up to judges’ discretion to give out sentences.
Conservative Premiers Doug Ford of Ontario and Danielle Smith of Alberta, along with federal Conservative Party leader Pierre Poilievre, all blasted the ruling.
Event left-leaning premiers such as Manitoba’s Wab Kinew blasted the Supreme Court ruling.
As reported by LifeSiteNews, Kinew recently suggested that people should “bury” those found in possession of child pornography under the prison” in response to the Canadian Supreme Court ruling.
Smith had harsh words after the court ruling as well.
“This decision is outrageous. The possession of child pornography is a heinous crime, and even a one-year minimum sentence is already far too lenient,” she wrote on X.
Smith, along with Conservative leader Pierre Poilievre, has called upon the Carney Liberals to invoke the Constitution’s notwithstanding clause to overturn the ruling.
Thus far, Carney has not spoken about the ruling.
From LifeSiteNews
Canadian pro-life charities and churches retain their tax-exempt status in the 2025-26 budget, a reversal attributed to public and political opposition to earlier proposals.
Canadian pro-life charities and churches will not lose their tax exemption under the Liberal Party’s newly presented fall budget despite earlier threats.
On November 4, Liberal Finance Minister François-Philippe Champagne presented the Canadian federal budget for Fiscal Year 2025-26 in the House of Commons that included no mention of stripping pro-life organizations and churches of their tax exemption.
“Campaign Life Coalition is breathing a sigh of relief that churches and pro-life organizations were not stripped of their charitable status in the (Mark) Carney Liberal budget released today,” Campaign Life Coalition (CLC) communications director Pete Baklinski said in a statement sent to LifeSiteNews.
As LifeSiteNews previously reported, before last Christmas, a proposal by the all-party Finance Committee suggested legislation that could strip pro-life pregnancy centers and religious groups of their charitable status.
The legislation would amend the Income Tax Act and Income Tax. Section 429 of the proposed legislation recommends the government “no longer provide charitable status to anti-abortion organizations.”
The bill, according to the finance department, would require “registered charities that provide services, advice, or information in respect of the prevention, preservation, or termination of pregnancy (i.e., destroying the unborn)” to disclose that they “do not provide specific services, including abortions or birth control.”
Similarly, Recommendation 430 aims to “amend the Income Tax Act to provide a definition of a charity which would remove the privileged status of ‘advancement of religion’ as a charitable purpose.”
Canadians quickly responded to the recommendations, warning that it would mean the end of many pro-life organizations and the vital work that they do to help mothers in need.
Likewise, Conservative MPs and clergy alike condemned the suggestion to tax churches that provide essential services to Canadians.
CLC national president Jeff Gunnarson commended Canadians for their pushback, attributing the victory to their strong opposition.
“This is a victory for religious freedom and for the Canadian values of helping the vulnerable, offering a compassionate hand, and being present to those in crisis,” he declared.
“The Liberal government was right to listen to ordinary citizens and faith leaders and ultimately reject these outrageous recommendations,” Gunnarson continued. “Thanks be to God, Canada lives to see another day without a dark cloud of persecution hanging over religious and pro-life organizations.”
“This victory belongs to the concerned citizens across Canada who took the time to sign a petition or write a letter to their MP or the Finance Minister,” he said. “This proves that when enough people speak out, good things can happen.”
Currently, the budget is under Parliamentary review, as Liberals lack sufficient votes to pass the legislation. Conservative Party leader Pierre Poilievre has declared that his party will not support the budget. The Bloc Québécois have also pledged opposition and the New Democratic Party (NDP) is considering supporting the budget.
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