BC Has Fourth-Highest Top Personal Income Tax Rate In Canada And U.S.
British Columbia has the fourth-highest top personal income tax rate in Canada and the United States, according to a press release from the Fraser Institute.
The totals include both the provincial and applicable federal rates.
Ben Eisen, a senior fellow at the Fraser Institute explained that “B.C.’s relatively high income tax rate, compared to other Canadian and U.S. jurisdictions poses a significant policy problem for the province since competitive tax rates help attract skilled workers and investment, which fuels economic growth.”
B.C. is only 1.3 percentage points lower than the highest rate in Canada and the U.S., which is 54.8% in Newfoundland and Labrador.
The highest personal income tax rate in the U.S. is California at 50.3%, which is 1.67% less than the Canadian average.
“If the B.C. government wants to help the provincial economy grow, it should make the province more attractive to entrepreneurship, investment and skilled workers by reducing the tax burden on top earners,” Eisen continued.
