How Progressive Is the Canadian Personal Income Tax? A Buffett Curve Analysis

Author:

Milligan Kevin1

Affiliation:

1. Vancouver School of Economics, University of British Columbia, Victoria, British Columbia, Canada

Abstract

This article addresses the burden of tax revenue in Canada with particular attention to income taxes at the top of the income distribution. Theory, methodology, and measurement are central to the discussion. I find that the Canadian personal income tax is progressive and satisfies the Buffett rule comparing the top of the income distribution with the middle. In the bottom half of the distribution, issues of measurement are pivotal to characterizing the tax burden. At the top of the distribution, incidence assumptions based on different theories of capital mobility are paramount and have a large impact on measured progressivity.

Publisher

University of Toronto Press Inc. (UTPress)

Subject

Public Administration,Sociology and Political Science

Reference34 articles.

1. Auten, G., and D. Splinter. 2019. “Income Inequality in the United States: Using Tax Data to Measure Long-Term Trends.” Unpublished manuscript. At davidsplinter.com.

2. Problems with integrating corporate and personal income taxes in an open economy

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