Taxing the Rich Won't Solve Canada's Economic Woes

Canada's progressive tax system is often touted as one of the best in the world, but it's not quite living up to its promise. With total output growth hovering around zero and income per person actually falling, it's clear that something needs to change.

Many Canadians believe that taxing the rich more will solve the country's problems, but this is a myth perpetuated by 'wishful thinking,' according to Dr. Roslyn Kunin, a respected Canadian economist. She notes that the top fifth of income earners already pay two-thirds of income taxes and almost 60% of total taxes in Canada.

One factor that advocates of tax-the-rich policies often overlook is the sheer number of high-income individuals. Even if they were to pay 100% of their income, it wouldn't go very far in solving Canada's problems, Dr. Kunin points out.

Rather than relying on a 'magic solution' like taxing the rich more, Dr. Kunin suggests that other steps can be taken to improve Canada's economy and infrastructure. These include investing in human capital, encouraging private sector investment, and eliminating red tape to enable government investment in much-needed infrastructure.