A flat rate for personal income taxes would be fairer and more efficient than Quebec’s current progressive tax system, according to an economic note published today by the Montreal Economic Institute.

Nearly half of the Quebec population would support such a reform.

“A flat tax is not only justified from the standpoint of fairness but also avoids penalizing productive effort and wealth creation, as a progressive system does,” wrote Maxime Bernier, author of the note.

The document asserts that progressive rates are arbitrary rather than objective and discourage individuals from earning more by imposing a tax burden that increases the more they work.

The author cites several studies showing that American states with high marginal tax rates have lower growth rates.

Bernier notes that Alberta and several American states (Colorado, Illinois, Indiana, Massachusetts, Michigan and Pennsylvania) have already adopted flat taxes, as well as Eastern European countries such as Estonia, Latvia, Lithuania, Russia, Serbia, Slovakia and the Ukraine.

In Quebec, a Leger Marketing survey carried out in October on behalf of the MEI found that 46% of Quebecers believe the Quebec government should adopt a flat-rate personal income tax.

“Already, nearly half of the Quebec population supports the idea even though it has never been given a vigorous public hearing,” said Bernier.

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