A new report from the Fraser Institute looking at the progressive nature of our income tax system, its fairness and how it effects investment shows Saskatchewan is a unique light.
The report shows that Canada and its provinces are very ‘progressive’ in global terms when it comes to taxation. That means we charge more as you earn more. Only California beats us all. Saskatchewan ranks #17 out of 45 jurisdictions in the OECD and, depending on how you look at it, ahead or behind all other provinces.
In this country, the top 20-percent of income earners pay roughly 58-percent of the income tax. And the bottom 20-percent pay less than two-percent. That’s progressive.
The more you make, the proportionately more you pay and it’s why workers like to say they don’t want overtime because the government takes it all.
It also discourages investors from taking risks or hiring more people because the payoff is taxed more heavily.
Based on this report, Saskatchewan tax policy is the least progressive in Canada but most aggressive …yet we’re still 20 spots behind Norway and Sweden.
