If Poverty line is at $36,000, Why Do We Tax Canadians at $14,398

The Issue

I am deeply moved by the struggles of low-income earners in Canada. It's disheartening to see individuals who barely make ends meet, yet are obligated to pay taxes. The current tax threshold is set at about $14,000, which is significantly lower than the poverty line set at $35,000. This discrepancy puts an undue burden on those already grappling with financial hardship.

One of my first client was making 22000 per year and had a 3 kids, when we prepared his return we had to tell him and he owes taxes. 

he would ask me, Moe I have no money left after paying rent and food, why do I owe taxes? 

My question exactly. 

Here is an example, 

If you make 22000 per year
Pay cheap rent at 1200 per month = 14,400
Food for 500 per month = 6,000
Utilities 150 per month = 1,800
Car and insurance 300 per month = 3,600
Cell phone 60 per month = 720
Vacation = 0
Saving = 0
Clothing = 0

Total income = 22,000
EI = 1054
CPP = 374 
Taxes = 848 (assuming no CWB) 
Livelihood = 26, 520
Total expenses  28, 796

Net loss = (6,796) often ends up on credit card 

Or get another job and still pay more taxes

If he had made 150K and pay even 75K after paying taxes, you have 75K left and after paying the livelihood of 30K you still have 45K left.


According to Statistics Canada (2019), nearly 3.7 million Canadians live below the poverty line. Yet many of these individuals are still required to pay income tax due to the current tax threshold being less than half of what constitutes poverty in our country.

This petition seeks a review and adjustment of this threshold by our government officials so that it aligns more closely with the poverty line. Such a change would provide much-needed relief for low-income earners and demonstrate a commitment towards economic fairness.

Let us stand together for those most vulnerable in our society and push for this necessary change in our taxation system. Please sign this petition today!

Moe Tabesh, CPA, CGA, B. Comm Numetrica

2,680

The Issue

I am deeply moved by the struggles of low-income earners in Canada. It's disheartening to see individuals who barely make ends meet, yet are obligated to pay taxes. The current tax threshold is set at about $14,000, which is significantly lower than the poverty line set at $35,000. This discrepancy puts an undue burden on those already grappling with financial hardship.

One of my first client was making 22000 per year and had a 3 kids, when we prepared his return we had to tell him and he owes taxes. 

he would ask me, Moe I have no money left after paying rent and food, why do I owe taxes? 

My question exactly. 

Here is an example, 

If you make 22000 per year
Pay cheap rent at 1200 per month = 14,400
Food for 500 per month = 6,000
Utilities 150 per month = 1,800
Car and insurance 300 per month = 3,600
Cell phone 60 per month = 720
Vacation = 0
Saving = 0
Clothing = 0

Total income = 22,000
EI = 1054
CPP = 374 
Taxes = 848 (assuming no CWB) 
Livelihood = 26, 520
Total expenses  28, 796

Net loss = (6,796) often ends up on credit card 

Or get another job and still pay more taxes

If he had made 150K and pay even 75K after paying taxes, you have 75K left and after paying the livelihood of 30K you still have 45K left.


According to Statistics Canada (2019), nearly 3.7 million Canadians live below the poverty line. Yet many of these individuals are still required to pay income tax due to the current tax threshold being less than half of what constitutes poverty in our country.

This petition seeks a review and adjustment of this threshold by our government officials so that it aligns more closely with the poverty line. Such a change would provide much-needed relief for low-income earners and demonstrate a commitment towards economic fairness.

Let us stand together for those most vulnerable in our society and push for this necessary change in our taxation system. Please sign this petition today!

Moe Tabesh, CPA, CGA, B. Comm Numetrica

The Decision Makers

Justin Trudeau
Prime Minister of Canada/Premier ministre du Canada

Petition Updates

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Petition created on November 18, 2023