A new report from the Fraser Institute reveals that the top 20% of Canadian income-earning families contribute over 65% of personal income taxes and 58% of total taxes, despite earning 49.5% of the country's total family income.

The study highlights that this group pays a disproportionately large share of taxes compared to their income share, with the bottom 20% contributing just 0.7% of federal and provincial taxes.The report attributes this disparity to Canada's progressive tax system, where higher income brackets face steeper tax rates.For instance, the top 20% pay an average rate of 23.1%, while the bottom 20% pay 2.7%.

The findings challenge the common misconception that high earners avoid paying their fair share, and warn against increasing tax rates on this group due to potential economic consequences.The study also notes that tax hikes could reduce Canada's competitiveness, particularly with the U.S., by deterring skilled professionals.

The Fraser Institute argues that the current tax system is already progressive and that further increases could lead to unintended revenue losses and economic harm.