On 7 December 2015, the Canadian Department of Finance announced a government proposal to cut the federal personal income tax rate for the second bracket from 22% to 20.5%. The cut would be offset with the introduction of a new top bracket with a 33% rate for income over CAD 200,000, which will be adjusted for inflation. As proposed, the brackets and rates for 2016 would be as follows:

• up to C…