Trends in Canada's Payroll Taxes
This short paper is the first in a new Caledon series, caledon social statistics. Using a combination of illustrative graphs and explanatory text, the series will explore social programs, tax benefits and trends in low income and other major social and economic indicators.
In addition to income taxes, Canadians pay employment-related taxes, known as payroll taxes. These payroll taxes finance our two main social insurance programs – Employment Insurance (EI) for the unemployed, and the Canada Pension Plan (CPP) for the retired. (Quebec operates its own very similar Quebec Pension Plan.) The income tax system provides both federal and provincial/territorial non-refundable credits to ease the burden of EI premiums and C/QPP contributions, as illustrated in the paper. Over the years, EI premiums have declined considerably overall, while CPP contributions have risen. However, the combined amount of payroll taxes has risen only modestly, mainly in the first half of the 1990s. And since 2002, maximum combined payroll taxes have remained roughly level at around $2,900 in gross terms and $2,500 in net (after federal tax credit) terms. Canada’s payroll taxes are low by international standards.
ISBN - 1-55382-546-2
View full document in PDF format.
Copies of our publications are also available, upon request, in Microsoft Word format. Please contact the Caledon Institute for information.
HAVE YOU SEEN
-Liveability -- for whom?
-Symposium on Children of the Recession
-Cut the Tax Cut
-What You Need to Know About the Canada Job Fund
-Welfare in Canada 2013
-Family Tax Cuts: How Inclusive a Family?
-If you don’t pay, you can’t play: the Children’s Fitness Tax Credit
-The Elephant Not in the Room
-The Six Billion Dollar Man
-Policies that Build Community
-Canada’s Invisible and Invaluable Labour Force
-A Second Look at the First Nations Control of First Nations Education Act
-Policies that Build (caring) Community
-Labour Market Development Agreements (LMDAs) and the Federal Role in Labour Programs
-Social Impact of the Nonprofit Sector: The Power of One
-Book Review: Poverty in Canada
-Here's a thought: The Canada Skills Grant
-Welfare in Canada 2012
-Disability in December
-Laurie Needs Affordable Housing
-Poverty and Prosperity in Nunavut
-Strengthening the Canada Pension Plan: Take it to the public
-Time for Talk, Not Action
-Time to negotiate: Hammering out a “First Nations Education Act”
-Welfare Re-form: The Future of Social Policy
-Is Canada (Still) a Fiscal Union?: Michael Mendelson
-Architecture of Federal Income Security in Canada: Ken Battle
-Social Policy Challenges for Canada: Sherri Torjman
-In Canada, the new solitudes are East vs. West
-Picture - Sherri Torjman
-Canada’s English-French divide giving way to East-West economic split, scholar says
-Video - Data Rescue
-Video - Sherri Torjman: Five Good Ideas about Policy
-Video - Sherri Torjman: Canada@150 address
-Video - Sherri Torjman: Shared Space & Community Recreation
Architecture of Federal Income Security in Canada: Ken Battle
Included are three papers presented by the Caledon Institute staff at the 20th Anniversary Celebration held on October 10, 2012. A compilation of all the speakers papers and speeches are forthcoming.