Question

With regard to federal income tax in​ Canada, ________.

Choose the correct answer.

A.

all residents of Canada are subject to several different flat taxes depending on their personal situation.

B.

all residents of Canada are subject to the same flat tax rate which changes each year as it is indexed for inflation.

C.

higher rates of tax are applied to higher levels of income using progressive tax brackets.

D.

higher rates of tax are applied to lower levels of income using regressive tax brackets.

Answer 1

In Canadian taxation is progressive system of taxation under this system that individuals who earn more are generally taxed more. By contrast, in a flat taxation system, everyone pays the same percentage of their incomes in income taxes. Canadians are required to pay a combination of both federal and provincial income taxes.

A.They are no need to pay different taxation rates on the basis of personal situation.

So that this option incorrect.

B. Same rate of taxation on every individuals and not the based on indexation

So this optio is also incorrect.

C. Under the progressive system higher income holder pay high rate of tax. Not by the lower income holders.

So this option not correct.

Option C Is correct.

Answer 2

With regard to federal income tax in Canada, ________.