The number of Canadians whose taxable incomes are in the top 1 percent bracket has remained virtually the same since 2016, when the Liberal government increased the federal income tax rate to 33 percent for the highest earners—or those making $200,000 or more a year.
The Canada Revenue Agency (CRA) said in an Inquiry of Ministry recently tabled in the House of Commons that there have been less than 400,000 tax filers over the past six years reporting annual incomes surpassing $200,000, according to Blacklock’s Reporter.
The CRA answered in the inquiry with a year-by-year breakdown from 2016 to 2020 of the number of Canadians in the highest tax bracket.
In 2016, just over 338,000 individuals reported annual incomes of $200,000 or more, and in 2017 the number rose to around 375,000. Between 2018 and 2020, the number stayed between 385,000 and 395,000.
The CRA said in the inquiry that it is still collecting tax data for 2021.
A parliamentary committee previously heard from the Department of Finance in 2016 that the federal government expected over 400,000 tax filers to report yearly earnings of $200,000 or more.
“Over $200,000, it’s about 0.4 million [Canadians],” said Miodrag Jovanovic, the Finance Department’s then-director of tax policy, while testifying before the Commons finance committee on April 12, 2016.
Tax Cuts
While still running for leadership of the Conservative Party, Pierre Poilievre promised to cut federal taxes on both payroll and income if elected prime minister, while the NDP has called on the federal government to increase corporate income taxes.“The federal government has repeatedly asserted that it lowered personal income taxes for the middle class when in fact it increased the personal income tax burden on most middle-class families,” said the study, published on Jan. 20.