Skip to main content

The Globe and Mail

Canadians paying $30-billion less in taxes this year, budget watchdog says

The Peace Tower and a Canadian flag are seen on Parliament Hill in Ottawa on Wednesday, April 27, 2011.

Sean Kilpatric/THE CANADIAN PRES

Canada's budget watchdog says Canadians are paying Ottawa about $30-billion less this year – or a little less than $1,000 per person – due to tax changes introduced in the past decade.

The Parliamentary Budget Officer calculates in a new report that personal income taxes have been cut by about $17.1-billion through a variety of changes introduced since 2005.

And the two-percentage point cut in the GST has resulted in a $13.3-billion saving this year.

Story continues below advertisement

Another way of representing the numbers is that Ottawa would have a healthy surplus today if not for the tax cuts.

The PBO did not calculate savings or lost revenue due to corporate tax reductions due to what the office said was data limitations.

Most, but not all of the tax reduction measures, have occurred under the Conservative government of Stephen Harper, which took office in February 2006.

By comparison, the many spending reductions and job cuts introduced by the Harper Conservatives will result in about $12.5-billion in savings for the government in the current 2014-15 fiscal year.

Despite some criticism in this area, the PBO says the lion's share of the tax savings have gone to low middle income earners – households with incomes between $12,200 and $23,000.

The lowest and highest 10 per cent of income earners have benefited the least from the changes.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨