TORONTO—The federal government’s recent tax increase on top earners will not raise the level of revenues expected and will eventually reduce government revenue, finds a study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“When governments raise tax rates with an eye on more revenue, taxpayers respond by working or investing less, or legally shifting income or expenses to reduce their taxes, which results in less additional revenue than governments expect,” said Finn Poschmann, resident scholar at the Fraser Institute.
