The evidence suggests that federal taxes in the Canadian economy are:

Question

Quizplus · Accepted Answer

Federal taxes in Canada are generally progressive. This means that those with higher incomes pay a higher proportion of their income in taxes compared to those with lower incomes. The federal government also provides various tax credits and deductions to help low and middle-income earners reduce their tax burden.

Option A (regressive) is incorrect because a regressive tax system would mean that those with lower incomes pay a higher proportion of their income in taxes.

Option C (higher than they've ever been before) is a difficult claim to make without specific data. However, it is true that taxes (both federal and provincial) have increased over time to meet the increasing demands of government services.

Option D (proportional) is incorrect because a proportional tax system would mean that everyone pays the same percentage of their income in taxes, regardless of their income level. This is not the case in Canada, as the tax system is based on the principle of ability-to-pay.

The Evidence Suggests That Federal Taxes in the Canadian Economy