Thank you.
This is for Ms. Bruske and maybe Mr. Cochrane, the senior economist for the CLC.
Ms. Bruske touched on this. In April 2024, Mr. Cochrane, you co-authored a report entitled “Canada's shift to a more regressive tax system, 2004 to 2022”, which found that in 2022 the total tax rate for the lowest household income decile—that's the bottom 10%—was 35%, whereas the total tax rate for the top 1% was 24%. Moreover, the report found that the top 5% of Canadians paid a lower rate in 2022 than the bottom 95% of Canadians did, with the top 1% paying an even lower rate.
Can you explain why Canada's tax system imposes a higher total tax rate on the bottom 95% of households than on the top 5%?