Indeed, it's very unfortunate that we don't have the documents. Everyone was looking at me questioningly. I think it was a bit of a waste of time to go through this exercise without the documents.
Implicit tax measures something specific. For example, if someone earns $100 more, what is the tax burden on that $100? Therefore it does not measure your average tax burden since there are other calculations that do that. It takes into account not only income tax, but also social security contributions to the Quebec Pension Plan, the Canada Pension Plan and employment insurance. What makes it unique is that it also takes into consideration any losses in tax benefits. It shows what tax benefits are lost if you earn $100 more.
When we do this exercise with the richest people, for example those who earn $250,000 or more per year, if they earn $100 more, they will have to pay roughly 50% in taxes to the federal and provincial governments combined. They will not make any more social security contributions since those payments will already have been made. Since they have been ineligible for tax benefits for quite some time already, they wouldn't lose any additional tax benefits.
As for those who are less wealthy, particularly the income group between $20,000 and $40,000, we note that they start paying taxes and continue making social security contributions, but they lose tax benefits.