Jb. Davies et Js. Zhang, MEASURING MARGINAL INCOME-TAX RATES FOR INDIVIDUALS IN CANADA - AVERAGES AND DISTRIBUTIONS OVER TIME, Canadian journal of economics, 29(4), 1996, pp. 959-975
Average marginal tax rates (AMTRs), and the dispersion of marginal tax
rates across income groups, for Canada over 1947-91 are reported. Fed
eral AMTRs fluctuated with little trend from 1947 to the mid-1960s, ro
se to the mid 1970s, fell, and then rose from the early 1980s through
to 1991. Federal plus provincial AMTRs trended upward after 1949, incr
easing fastest from the mid-1960s to the mid-1970s. Relative dispersio
n of MTRs shows a strong downward trend over the sample period. This c
ompression has been due partly to a decline in top MTRs, but the main
influence has been the steady increase in the portion of the populatio
n, and of income, subject to tax. The AMTR time series is quite volati
le. Difference stationarity is not rejected.