Frasier institute, Web Media
VANCOUVER — A new study from the Fraser Institute says every Canadian province has a more progressive tax system than most high income countries in the OECD, placing all provinces in the top half of 45 jurisdictions examined.
The report assessed tax progressivity by looking at how the total tax burden rises with income and compared personal income tax reliance, consumption tax use, tax rates and income thresholds. Newfoundland and Labrador ranked as the most progressive province and second overall, while Saskatchewan ranked lowest among provinces but still placed 17th.
Other provinces fell between sixth for Nova Scotia and 16th for Alberta. The study also found California and Texas, the two American jurisdictions included for comparison, ranked first and fifth, suggesting the United States tax system is even more progressive than Canada’s despite common perceptions.
Researchers say the findings challenge assumptions about international tax systems. Scandinavian countries often viewed as highly redistributive, including Sweden and Norway, ranked near the bottom for progressivity.
The authors say the results indicate Canadian governments already maintain some of the most progressive tax systems in the industrialized world.
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