Workers Making The Least Are Hit Hardest For Extra Earnings: Federal Docs

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Making more money can mean losing benefits aimed at alleviating poverty.

The Canada Revenue Agency headquarters Connaught Building is pictured in Ottawa on Aug. 17, 2020.

Understanding who loses more from earning more, and what federal programs are involved “can guide the development of approaches to ease the burden … and encourage additional work,” officials wrote in the documents. Paying more in taxes was the culprit for those making the most, while those near the bottom faced a double-whammy of taxes and drops in income-tested benefits, such as the Canada Child Benefit.Overall, the country’s 19 million workers would have lost, on average, $341 for each $1,000 boost in their earnings based on the 2017 data the paper relied on, but the burden was heavier for workers with children.

The Canadian Press obtained a copy of the reports and associated briefing note through the Access to Information Act.

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