Myth: Canadians Pay Much Higher Federal Income Tax than Americans

(Research in Progress)

FACT:

(Page 81 http://www.fin.gc.ca/ec2007/pdf/EconomicStatement2007_E.pdf)

Examples of Personal Income Tax Relief

Joseph and Sandy have two children. Joseph earns $16,000 and Sandy
$24,000. Prior to the measures taken by this Government, they would have
paid $2,920 in federal personal income taxes in 2007 (net of the GST credit).
Tax relief provided in Budgets 2006 and 2007 reduced their personal income
taxes by about $1,100. Measures proposed in this Economic Statement will
further reduce their taxes by $270. In total, their federal personal income
taxes in 2007 will be reduced by almost 50 per cent.

Connie and Richard have two children. Connie earns $60,000 and Richard
earns $40,000. Prior to the measures taken by this Government, they
would have paid $13,913 in federal personal income taxes in 2007. Tax
relief provided in Budgets 2006 and 2007 reduced their personal income
taxes by $1,255. Measures proposed in this Economic Statement will
further reduce their taxes by about $430. In total, their federal personal
income taxes in 2007 will be reduced by 12 per cent.