The Burden of Federal Tax Increases Under the Conservatives

Grady, Patrick (1992): The Burden of Federal Tax Increases Under the Conservatives. Published in: Canadian Business Economics , Vol. 1, No. 1 (10 September 1992): pp. 16-24.

Abstract

An important economic trend in Canada in recent years is the increasing share of personal income going to both direct and indirect taxes. This article provides a analysis of the distributional impact of federal tax and transfer policies over the period that the Conservatives were in power between 1984 and 1992. It finds that the policy changes (primarily increased commodity taxes and income surtaxes) have raised the tax burden on the household sector by $22 billion between 1984 and 1992. Net taxes paid by the average Canadian family have increased by almost $1,900. The tax changes have been very progressive on average for families earning less than $35,000 per year, roughly prooortional in the $35,000 to $75,000 range, modestly regressive in the $75,000 to $150,000 range, and very regressive above $150,000.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tax increases in Canada, distributional analysis
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies

References

Michael J. Bordt, Grant J. Cameron, Stephen F. Gribble, Brian B. Murphy, Geoff T.Rowe, and Michael C. Wolfson, "The Social Policy Simulation Database and Model: An Integrated Tool for Tax/Transfer Policy Analysis" Canadian Tax Journal, Vol. 38 (January-February 1990), pp.48·65.

Patrick Grady, "The Distributional Impact of the Federal Tax and Transfer Changes Introduced Since 1984," Canadian Tax Journal, Vol. 38, No.2 (March-April 1990),pp.286-297.

Patrick Grady, "An Analysis of the Distributional Impact of the Goods and Services Tax," Canadian Tax Journal, Vol. 38, No.3 (March- April 1990) ,pp.632-644.