Canada’s shift to a more regressive tax system, 2004 to 2022

April 30, 2024
1.16 MB36 pages
Click here to read the report online.

This study looks at tax changes between 2004 and 2022, examining changes by the Paul Martin Liberal government, Stephen Harper Conservative government and Justin Trudeau Liberal government. It considers almost all sources of income, including corporate profits and other sources of income not normally counted in Statistics Canada’s tallies, and all taxes paid.

It finds that, overall, Canada’s tax system is only moderately progressive through the bottom half of the income distribution, and is regressive at the top of the distribution due to several sources of untaxed or lightly taxed income (such as capital gains, inheritances/bequests and employer-provided benefits) that predominantly go to top earners.