This report examines changes to the provincial tax system over the last decade. We look at the total provincial tax rate for households at different income levels (the actual tax bill as a share of household income for all personal provincial taxes combined — income, sales, carbon and property taxes, and MSP premiums).
We find that together these changes have created a tax system where the rich now pay a lower total provincial tax rate than the rest of us.
• In 2000, most BC households paid about the same total tax rate, with households in the top 10% and top 1% paying a little more.
• By 2010, however, the tax system had become regressive, with the richest 20% of households paying a lower total tax rate than the rest of us.
This regressive tax shift was driven by the following:
• Large income tax cuts primarily benefited upper-income earners, both in dollar terms and as a share of income.
• Combined, tax cuts delivered an average of over $9,200 per year to the richest 10% of BC hou…