A new report reveals that low-income working Canadians with disabilities are facing tax rates of over 100% and advocates say that has to change.
The alarming report from the Library of Parliament shows that federal and provincial taxes combined with various benefit clawbacks make many working disabled taxpayers worse off for working longer hours, getting raises or in some cases even working in the first place.
It’s an issue that disability advocates have long known about, but this marks the first time it’s been formally tabulated by the government.
“I think this starts to quantify why people with disabilities are staying on the sidelines,” notes Rich Donovan, CEO of The Return on Disability Group. “I think there are some real structural issues in economics that cause this dislocation.”