Posted October 13, 2018 09:58:09The X22 report, which is released today by the Statistics Canada, finds that Canada’s economic performance since 2000 has been much better than most other developed countries.
In fact, Canada’s gross domestic product has grown more than twice as fast as the average of its peers.
Canada’s average per capita income is nearly $20,000 higher than that of the United States and Germany.
Moreover, Canada is the only country in the G7 group of industrialized nations with a gross domestic investment of more than $50 billion.
But while this economic performance has been remarkable, it has come with a steep price tag.
The report finds that over the past 20 years, Canada has paid $9,500 in tax to the federal government on income earned in the country, an average of nearly $2,000 per taxpayer.
As a result, Canada pays more in taxes than any other country in Canada, and its tax rate is higher than any OECD country.
Even more troubling, Canada does not have a net-income tax.
This means that its government collects income taxes that are more than half what it is actually paying.
Over the past decade, the tax burden on Canadian households has grown at an even faster rate than its gross domestic output.
To put this in perspective, the United Kingdom and France have been paying far less in tax over the same period.
While Canada’s net-tax burden is much higher than the rest of the G8, it is still well below that of other OECD countries.
In fact the report finds Canada’s federal-provincial and territorial tax rates are among the lowest in the world, as are the tax rates on income.
And, according to the report, Canada owes an estimated $2.1 trillion in back taxes.
The Canadian government has long touted its low-tax strategy, arguing that low taxes will spur economic growth and encourage investment.
It also argues that the federal and provincial taxes are not an unfair burden to Canadians, since they are collected from the province and not the federal tax base.
“Canada’s net tax burden is lower than that on the OECD average and its effective federal-local tax rate of 13.5 per cent is among the highest in the OECD,” the report says.
However, the report also found that Canada pays the highest tax rates in the developed world.
Canadian tax rates, however, have risen by more than 50 per cent over the last decade.
Since 2000, Canada had the second-highest tax burden per capita of any OECD nation.
That is despite the fact that the majority of Canadian income is taxed at a low rate of about 17 per cent.
The report does not address the fact some of Canada’s tax-heavy industries have been particularly successful.
For example, the forestry sector, which accounts for about 20 per cent of Canada.
Forestry has benefited from the global economic recovery, but many industries, such as mining and oil and gas, have seen their revenues decline over the years.
Other sectors have also seen their profitability fall.
Overall, however in the last 10 years, the value of the mining and energy industries has grown significantly.
Yet the report points out that the vast majority of these gains have been in the form of capital gains and dividends.
Thus, it says, Canada now has the highest capital gains tax rate in the entire OECD.
According to the analysis, this is the first time since 2000 that the total value of Canadian assets has grown faster than the value added to Canada.
The study also found Canada’s income tax rate has grown by nearly a third in the past five years, while corporate taxes have declined by more to 1.2 per cent since 2000.
Despite the high rates and low taxes, Canada still accounts for a significant share of the world’s wealth.
At the same time, the country still has a lot of inequality in the economy, the authors say.
Given this, the study suggests Canada should be concerned about the future of the country’s economy.
Because the OECD countries with the lowest levels of inequality are still relatively wealthy, it could be that the economy will continue to grow and the wealth and income of the majority will be protected from the effects of globalisation.
Furthermore, Canada may find itself with a weaker economy in the future, especially in terms of economic growth, the analysis says.
(For more stories, see: http://www.theglobeandmail.com/globe/globalfinance/2018/10/11/globo-finance-report-november-report/)