Is it Finally Time to Reduce Income Tax Rates?

[Drybrain]

Originally Posted by TheCuriousMind

I don't really know why this is framed as a "tax savings" though. If your salary raises with inflation, then your % tax should stay the same. They frame this as a tax break, but really it is just stopping what was before an effective tax INCREASE every year. Over decades, this is why someone who earns $100k in NS currently pays a whopping $6812 (more than 33% more!) income taxes than a $100k earner in BC. And they wonder why many of us young working professionals have left and haven't come back!

In fairness, BC has the lowest provincial taxes in Canada unless you're making well over 100k, so that discrepancy isn't really representative of typical discrepancy in provincial tax rates across the country. (And those tax savings in BC, and more, are likely to be eaten up by higher housing costs--though obviously Nova Scotia's housing-affordability advantage has substantially eroded in the past few years.) Not to defend the high tax rates, of course.