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Abstract
In recent years much attention is being paid to teh issue of taxation in Canada. Many economists, politicians, and the public believe taht the tax burden is becoming unbearable. In order to argue in this, one needs to know how taxation distorts the output and income in the Canadian economy. The key is estimating these values is the marginal tax rate, because it affects individuals' decisions on how much work and capital to offer in the factors market. In this respect we need data for the personal and corporate marginal tax rates and for the overall marginal tax rate as well. In this paper we estimate these figures for the Canadian economy for the years 1977 to 1992.
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