New “green” levies layered on top

According to the OECD, Canada’s total tax revenue as a share of GDP rose from a nadir of 30.8 percent in 2011 to 34.8 percent in 2023—a gain of 4 percentage points in just twelve years. That increase places Canada above the OECD average (33.9 percent in 2023) and marks one of the steeper climbs among peer nations OECD

2. Personal and corporate levies account for more

Breaking down the 2022–23 figures, the largest contributors to that tax take were:

Personal income, profits, and gains (39 percent of total revenue)

Corporate income and gains (13 percent)

Payroll taxes (10 percent)

Together, these major categories now comprise more than 62 percent of all government receipts—up several points from the early 2010s

OECD

3. New “green” levies layered on top

Beyond traditional income and sales taxes, Ottawa has layered in environmental charges as well. The pan‑Canadian carbon price, launched in 2018 at $10 per tonne, climbed to $65 per tonne by 2023 under successive federal budgets—revenue that now flows back to provinces or individuals in rebates, but which still adds to businesses’ cost base

Wikipedia

4. Carney’s mixed track record on tax policy

Since taking office, Prime Minister Carney has eliminated the consumer carbon tax and trimmed the bottom personal‑income rate from 15 percent to 14 percent—that much is undeniable

Wikipedia

Yet critics on the right allege he’s merely pausing hikes until after the next election, after which a “bigger carbon tax with no rebate” will return to punish Canadians’ wallets

Conservative Party of Canada

5. Industrial “border” and digital levies loom

On the corporate side, Carney has signaled openness to shifting away from a pure consumer carbon price toward industry‑focused mechanisms—think an EU‑style carbon border adjustment (CBAM)—which would effectively slap new costs on imported goods and further boost tax receipts at the border

Carbon Credits

Meanwhile, although his government shelved plans for a Digital Services Tax to facilitate U.S. trade talks, observers warn it could resurface as revenue needs grow