Article: Canada’s income tax rates have become uncompetitive, and the economy will pay the price

According to a recent article in the Financial Post, Canada’s tax rates at theĀ  top are so high as to be punitive. The writer suggests that this discourages high income earners and those with the potential to earn more from doing so. Follow this link to read Jamie Golombek’s opinion piece.

Golombek makes the point that high marginal tax rates reduce the reward of earning more income thus discouraging people from engaging in productive economic activity.

The Single Tax System would eliminate this problem since everyone, regardless of income, would be equal under the system, with the same ABC% tax rate applied after the same personal annual exemption amount of $ABC

Do you think Golombek is right? How would you solve the issue he’s highlighting?

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