I'll first comment on the tax rates. There's marginal tax rate and then your average tax rate. There's a bit of a difference there. We also need to point out that there are other considerations in terms of where people want to live and work, housing costs, proximity to jobs, transit amenities, open space.
Kevin, I believe you and I crossed paths at the University of Toronto many years ago, probably about 20 years ago I think, when we did our graduate studies. You're out at UBC now, so congratulations on living in Lotusland there on the west coast.
I'm going to throw this out there very quickly. On our government's policy to reduce the second tax rate, some have argued as to why we didn't reduce the first tax rate. I think it needs to be known that reducing that second tax rate is very important, because a lot of income earners who are in that first tax rate bracket qualify for a number of credits that the second bracket of individuals do not. The maximization of providing benefits to the middle class for the cut to the second tax rate, I think is very important, and I think it was great policy on the part of our government.
Before I let you answer, I do want to make sure we correct something that Ms. Raitt pointed out earlier. The bail-in legislation for Canadian banks was brought out by the predecessor government in response to the global bail-in regimes being brought forth by the regulatory agencies and governments around the world after the financial crisis. It is being put in place to protect depositors, insure depositors. It is to do with bonds that are outstanding and the convertibility of liability. I do want to correct that.
Now we can answer the tax question.