Ontario NDP Tax Increases

Grady, Patrick (1993): Ontario NDP Tax Increases. Published in: Canadian Business Economics , Vol. 2, (1993): pp. 12-23.

Abstract

This paper uses Statistics Canada's Social Policy Simulation Database and Model to provide estimates of the cumulative magnitude and distributional impact in 1993 of the tax increases introduced by the NDP government in Ontario in their three budgets after coming to office in 1990. It finds that the Ontario NDP tax changes have increased the tax burden on the Ontario household sector by almost $3 billion and have raised the average taxes paid by an Ontario family by $663. The tax increases are progressive up the income scale. Upper income families earning over $150,000 bear the heaviest tax increases of $6,811 per family. The vast majority of Ontarions,including even low and particularly middle income earners,face substantial tax increases. The only group sheltered is the low-income group who benefit from the greater targeting of property and sales tax assistance for seniors.

• Item Type: MPRA Paper
• Language: English
• Keywords: distributional analysis, tax increases, Ontario
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue

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