Quote:
Originally Posted by MarchHare
Isn't that exactly how the progressive income tax programs used by most (all?) developed nations are supposed to work? Ignoring tax loopholes and shelters taken advantage of by the rich, citizens are supposed to pay a higher percentage of tax as their income increases.
http://en.wikipedia.org/wiki/Progressive_taxation
Federal income tax in Canada is structured like this:
Also note that the first $10,382 you earn is not taxed, so the 15% marginal rate applies to the portion of your income from $10,383 to $41,544.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html |
You have to limit the progressive taxation at some point though. You start to lose the incentive of making more money at a certain percentage of taxation.
I understand the need for progressive taxation, however, I also feel that at some point a plateau should be reached.