Canada’s income tax deductions are helping make the rich richer, a new study has concluded. The research paper released Monday by the Canadian Centre for Policy Alternatives (CCPA) says breaks on personal income taxes in Canada cost almost as much as the government collects from those taxes, and they disproportionately benefit the rich. “In essence, there are two federal transfer systems in Canada: one for the poor and middle class and another shadow system for the rich,” CCPA senior economist David Macdonald said in a statement.

A T1 General 2010 tax form is pictured in Toronto on April 13, 2011. (Photo: The Canadian Press/Chris Young) The “one for the poor and middle class” is the country’s social safety net, including the Canada Pension Plan, Employment Insurance, Old Age Security, the GIS, the GST credit and child tax benefits. That system cost Canada $113 billion in 2011. But that year the country passed over nearly as much in revenue — $103 billion — to tax breaks, most of which favour higher earners. The research paper calculated that, of the 64 income tax deductions available in Canada, 59 of them put more money in the pockets of the top half of earners than they do in the pockets of the bottom half, and the richest 10 per cent get “the largest share,” the report said. Click for full size.