Canadians Now Paying Lower Income Taxes Than Americans, OECD Data Shows
New data from OECD shows that in 2017 the net tax rate on a family with two kids in Canada is 12 times cheaper than a family in the United States. The net tax rate is the personal tax rate plus social security contributes minus family benefits as a percentage of gross income. In Canada, an average married worker with two children had their employee net average tax rate reduced to 1.2 per cent. The same family in the U.S. would pay 14.2 per cent in taxes. It varies greatly depending on income, but once the child benefit is factored in, an average one-income household with two children now keeps 98.8 percent of their gross income.
Read more: Canadians Now Paying Lower Income Taxes Than Americans, OECD Data Shows