Who says the rich don’t pay their fair share of taxes?

Fred O’Riordan is the national tax policy leader at EY Canada and a former assistant commissioner of appeals at the Canada Revenue Agency.

“A nurse in Ontario earning $70,000 would face a combined federal-provincial marginal tax rate of 29.7 per cent. In comparison, a wealthy individual in Ontario with $1-million of income would face a marginal tax rate of 26.8 per cent on their capital gains.

Now let’s turn to the tax treatment of the wealthy individual earning $1-million pretax. Assuming all income was earned from employment and none from capital gains, this individual would pay combined federal-Ontario income taxes of $491,952 at a marginal tax rate of 53.53 per cent, resulting in an average tax rate of 49.2 per cent, compared with the nurse’s 17.99 per cent. If some of the individuals’ earnings were in the form of capital gains, the marginal tax rate on those gains would be 26.

No one would argue that a nurse earning $70,000 in income should pay 43.7 per cent of that income in tax. That would not be fair by anyone’s metric.

Cent Income Tax Nurse Canada Rate Tax Rate Comparison Statistics Canada Chrystia Freeland Ontario

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