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“These rising income rates are harming our ability to attract these workers.”

Lammam also said the difficulties are due to Canada’s top rates kicking in at lower levels of income in comparison to the U.S. “which further erodes Canada’s tax competitiveness.” Top federal tax rates in the U.S., for example, are only charged to a single person making more than US$415,050 per year or a married couple earning more than $466,950.

But the higher federal rate don’t shoulder the blame alone.

Five provinces have raised their top tax rate since 2009. The biggest increase occurred in Alberta — to 15 per cent from 10 per cent. Only Newfoundland and Labrador lowered the rate applied to its top earners, by 0.2 per cent.

The study also compares Canada’s top rates to those in the U.S.

Workers earning top dollar in Nova Scotia, Ontario, Quebec and New Brunswick pay more personal income taxes than those in California, the U.S. jurisdiction with the highest combined rate of 52.90 per cent. Highly skilled workers would be drawn to states such as Florida and Texas because an absence of a state tax means they’d only have to pay 39.60 per cent, the study shows.

Lammam said both Prime Minister Justin Trudeau and Finance Minister Bill Morneau have spoken about attracting a “knowledge-based economy with highly skilled workers” but raising the tax rate runs counter to that goal. in the face of that goal.

“Unfortunately they’re putting forward policies that run counter to those goals,” he said.

Given that the federal budget is set for next week, Lammam hopes this will change. “They’ve talked a lot about this issue and I think it’s an opportunity for them to deliver.”