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Taxes and fairness, Part 1: Danny’s other legacy

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We hear a lot about Muskrat Falls as Danny Williams’ legacy, but it is hardly the only problem he left us to sort out. He rejigged provincial income tax rates between 2007 and 2010 so as to primarily benefit our wealthiest citizens. The result is that people earning in excess of $100,000 a year have since received – in the form of reduced taxes – more money than the province normally raises through income tax in an entire year. Income distribution changing Income figures for 2015, recently released by the Canada Revenue Agency (CRA), reveal our province to be profoundly divided. Our income distribution now exhibits a strangely inverted symmetry: more than half the people earn only a fifth of the income, while a fifth of the people earn more than half. This pattern is new and results from changes in provincial government policy that favour high-income earners. This policy…

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