Longstanding problem of discouraging work made worse

The federal government’s new Canada Child Benefit program recently replaced and consolidated an assortment of previous programs. Yet little attention has been given to how this policy change, along with others, will exacerbate a longstanding economic problem in Canada: high marginal effective tax rates and the resulting work disincentives faced by some moderate and middle-income Canadians.The marginal effective tax rate is simply the amount of money you lose to taxes, including the reduction of government benefits, when earning an additional dollar of income.High marginal effective tax rates weaken the incentives for people to earn extra money by working additional hours

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