Trends in Canada's Payroll Taxes
 
Ken Battle, November 2011
 

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

-The Canada Child Benefit Needs to be Fully Indexed to Inflation -The Social-Policy-Is-Back Budget -Designing a housing allowance program -Some Implications of the Liberal Government’s Tax Changes -Farewell, Wizard of Oz -Ottawa Must Get Serious about Poverty Reduction -Ensuring Real Accountability on First Nation Reserves -Welfare in Canada, 2014 -We Are All Disabled -Child Benefits in Canada: Politics Versus Policy -Tax credits: great politics, bad policy -Disability Supports: Missing on the Policy Radar -The 2015 Deficit-of-Ideas Budget -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 -

Welfare in Canada, 2014

Anne Tweddle, Ken Battle and Sherri Torjman, December 07, 2015

This report focuses on the incomes of four different households living on social assistance, commonly known as “welfare.” It is a continuation of the welfare incomes series published regularly by the

More >