High income-tax rates killing competitiveness, says Fraser Institute

Canadian workers at almost every economic level are paying significantly higher personal income-tax rates than their U.S. counterparts, undermining economic growth, says a new study by the Fraser Institute.

The report, Canada’s Rising Personal Tax Rates and Falling Tax Competitiveness, co-authored by Robert P. Murphy, Milagros Palacios and Jake Fuss, studied combined federal and provincial marginal income-tax rates on annual earnings from $50,000 to $300,000, adjusting for the U.S.-Canada exchange rate.