TAX FACT: Tax cuts cannot produce a significant improvement in the standard of living of low-income Canadians, for the simple reason that low-income people hardly pay any taxes. Even for middle-income earners, tax cuts won't make much difference.
Sixty percent of Canadians earn less than $25,000 in a year.
This majority of Canadians hardly pays any income tax at all -
barely 5 percent of their income. Even eliminating their taxes
altogether won't make a measurable difference to their quality of
life. But more cutbacks to social programs, which will inevitably
result from tax cuts, will hurt them badly. Even middle-income
Canadians only pay about 20 percent in income taxes, after
deductions and exemptions. For them, tax cuts will only marginally
enhance their disposable income, while putting important public
services (like Medicare) at risk.
Source: CAW Research from Canada Customs & Revenue Agency, "Income Tax Statistics on Individuals."