Still High: Marginal Effective Tax Rates on Low-Income Families

Abstract

Most federal and provincial government benefits for families with children are sharply income-tested. Reductions in these benefits, as family income rises, mean that low-income families face much higher effective tax rates than most others do, and deny such families the full benefit of the broad-based tax rate relief other Canadians have enjoyed in recent years.social policy, Marginal Effective Tax Rates, tax relief initiatives