Final answer:
True, the statement that Canada's tax system is 'progressive' is correct. In a progressive tax system, individuals with higher incomes pay a greater percentage of their income in taxes than those with lower incomes. The rate of taxation increases with the amount of income earned, creating a fairer distribution of tax burdens.
Step-by-step explanation:
True, Canada's tax system is indeed progressive, meaning the higher someone's income, the higher the percentage of income they pay in taxes. This progressive tax system is designed so that individuals who earn more money pay a higher marginal tax rate on their income. According to the concept of progressive taxation, for instance, those earning between $50,000 and $80,000 might be taxed at a 20 percent rate, while higher earners with incomes between $300,000 and $1,000,000 would face a 35 percent tax rate. The progressive nature of the tax system ensures that those with higher incomes contribute a larger share to the tax revenue, which is considered a fairer taxation approach.
Furthermore, the progressive tax structure adjusts rates according to different income levels. In the United States, for example, a married couple filing jointly in 2015 paid 10 percent on the first $18,450 of income, with the rate increasing to 15 percent on additional income, scaling up to a maximum of 39.6 percent on higher income levels. This sliding scale of tax rates represents the foundational principle of a progressive tax system where the tax share increases with income.