Question

Consider the Table below showing combined tax rates for Nova Scotia and Alberta.

Nova Scotia		Alberta
Tax Brackets	Tax Rate	Tax Brackets		Tax Rate
<$11,475	0	< $18,452		0
$11,475 – $29,590	23.79	$18.452 – $45.282		25
$29,591 – $45,282	29.95	$45.283– $90.563		30.5
$45,283 – $59,180	35.45	$90.564 – $125.000		36
$59,181- $90,563	37.17	$125.001	-$140.388	38
$90,564- $93,000	42.67	$140.389	– $150.000	41
$93,001- $140,388	43.5

a. Using the information above, compute the marginal (MTR) and average (ATR) tax rates for an individual at each level of annual income in the Table below:

Income

MTR (NS)ATR (NS)

MTR (AB)ATR (AB)

15000

60000

120000

b. Using the information in the Table, do both provinces have progressive tax systems?

c. Further, which province has a more progressive tax system? Make sure you clearly state the measure of progressiveness you are using.

Answer 1