Poor pay higher tax rate than rich in B.C.

CTV:

Wealthy people in B.C. are paying a lower rate of provincial tax than the middle class and the poor when taxes like the HST are included in the calculation, according to a new study.

Middle and low-income people are paying a greater share of their income in taxes thanks to levies like provincial health premiums, carbon taxes on gasoline, property taxes and the harmonized sales tax, according to research from the Canadian Centre for Policy Alternatives.

"We've turned the tax system on its head," study co-author Seth Klein told CTV News.

"Most British Columbians expect that the wealthier you are, the more taxes you pay. In fact, in practice, what you have is the opposite. The wealthier you are, the lower your overall tax rate."

In 2010, the study found that higher earners pay a much lower rate of tax -- 11.2 per cent -- while middle-earners pay 12.8 per cent and the bottom earners pay the highest tax rate of all, at 14.1 per cent.

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