Income Tax Gouges the Low Income Earners

Here is an example income tax situation in Canada, New Brunswick specifically. I worked out the 2008 income tax figures for an acquaintance who is retired, female and living with her boyfriend who also is also retired. In summary, her figures are

Total income: $16,168 (Sources: CPP, Company pension & a LIF)
Taxable income: same
Income Tax: $1370

I consider it outrageous that somebody with such a low income has to pay such a large amount of income tax relative to her income. This woman is living with someone, otherwise she would have been forced to continue working beyond the 37 years she already put in.

It is clear that the low income people are paying too much income tax. Instead of giving tax breaks to the very well off, the low income should get more of a break.