7. Measuring the Distribution of Taxes in Canada

Put differently, the share of income taxes collectively paid by the top 20 percent is 31.2 percent larger than the share of income earned. [...] The first quintile represents the bottom 20 percent of income-earning families and the fifth quintile represents the top 20 percent.8 The income range for each quintile is shown in table 1. Figure 1 displays the share of total income in Canada earned by families in each quintile and the share of federal and provincial personal income taxes paid by families in each quintile. [...] Lammam, MacIntyre, Palacios Personal Income Taxes Paid by the Top 1 Percent of Earners The top 1 percent of income-earners is often criticized in the inequality debate and targeted as the group that should pay higher taxes, so this group warrants special focus in our analysis of the distribution of taxes.9 For example, the feder- al government has repeatedly pointed to measures it has undertaken t [...] The share of income taxes paid by the top 1 percent is more than two-thirds (67.1 percent) larger than the share of total income earned. [...] A similar pattern holds when looking at families in the top 5 and 10 percent of earners.12 In contrast, the bottom 50 percent of income earners in Canada pay a proportionately small share of income taxes relative to their share of total income earned.