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Federal study details workers hit hardest by tax, benefit system for extra earnings
OTTAWA — Newly released documents show Finance Department officials calculated that workers near the bottom of the income ladder are dinged hardest for extra earnings than anybody else, including those at the top.
Besides paying more tax, making more money can mean losing other benefits aimed at alleviating poverty.
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.
Workers with modest incomes, between about $25,000 and $34,000, lost $413 for every $1,000 in extra earnings, the highest clawback of any income level.