Some people have suggested that a flat tax would be fairer to everyone. If we all paid 10 percent of our total income, say, low wage earners might pay less and higher income earners would almost certainly pay more. Experts have looked at this idea, but they believe it wouldn’t bring in as much money as our present system does. They also point out that people wouldn’t get the tax breaks we’ve all come to expect. At present, we get a personal exemption, a spousal exemption, rebates for GST, tax credits for housing costs, credits for charitable donations and medical expenses, and several other things. So, for now, Canada is keeping the progressive tax system.

The provincial governments follow a similar process. They can increase or reduce provincial taxes independently. They don’t have to follow the federal government. Their MPPs (Members of the Provincial Parliament) have to approve the budget, just as the MPs do in the federal parliament.