The Canadian Centre for policy alternatives, an Ottawa think tank, has put out a report that accuses the Canadian tax system of failing the basic test of fairness. They are using the fact that the top 1% of income earners is paying a lower percentage of their income compared to those at the bottom of the income scale to justify their argument.
Those very rich Canadians paid 30.5 per cent of their income in federal, provincial and municipal taxes in 2005, as opposed to the 30.7 per cent for those with incomes under $13,523, the lowest 10 per cent of family earnings.
That's a big difference from 1990, when the top 1 per cent of earners paid 34.2 per cent of their incomes in taxes, as opposed to 25.5 per cent for families in the bottom 10 per cent.
"The tax system has gotten less progressive," said the group's senior economist Marc Lee.
What Mr. Lee fails to point out is the following:
- The top 1% of income earners pays far more into the tax system and receives much fewer benefits when compared to lower income earners.
- The top 1% of income earners often risks their capital for investments that create jobs for many of us, so a lower tax rate for them means more investments and jobs for our economy.
- The business and companies that are formed by the top 1% of income earners provide the government with much needed funds for many programs that benefit lower income earners. Higher taxes mean less investment and less money in the long run going into the government coffers to fund these programs.
- Lower tax rates are one of the key factors that attract capital and investment by those with the means to invest.
The fact that the Canadian Centre for policy alternatives is also blind to is that increasing the tax on the rich hardly works. In most cases, it gets passed down as increased cost to lower income earners, thus defeating the purpose. It also discourages further investment, which translates to lost economic opportunities, fewer jobs, etc.
The lowering the tax rate for top income earners from 34.2 percent to 25.5 percent ended up benefiting most of us. Not just the rich, as alluded to by the Canadian Centre for Policy Alternatives. It enabled the federal and provincial governments to collect more money than it would have if the tax rate had remained the same. This was due to increased investment, in terms of more businesses and companies expanding and more people being employed.
6 comments:
I don't think the CCPA is actually blind to the facts--they're just very selective in what facts they consider and what facts they don't. The CCPA, otherwise known as the Canadian Centre for Alternatives to Good Policy, has about the most leftist agenda of all the think tanks, and they're hardly non-partisan. Everything they publish is so full of holes, the studies are not even worth reading.
Even though the top income earners appear to pay more they in fact pay less due to the myriad ways they can escape taxation due to investing excess income in shelters etc. This is also more true for self employed and businesses. It is the truth. Frankly a flat tax is the only solution.
You should say: "The far-left Canadian Centre for Policy Alternatives"
I would also welcome a flat income tax system. However, it still wouldn't stop groups like the CCPA from trying to spin crap like this.
Even with a flat income tax, after you factor in the many other taxes we all pay (GST, PST, payroll, property, land transfer, excise, etc, etc.) you're still going to have differing rates paid by different taxpayers when you compare the total tax to total income.
It's a little simple of the CCPA (of course, they cater to simple-minded people) to just compare the amount of tax paid to total income. Income simply isn't the only factor that determines the tax you pay, nor is it the only factor in determining your capacity to pay tax.
I totally agree. A flat tax should replace this marxists system. Less than 1% of the population pays 30.5 % of taxes and that is not progressive enough???
Hello !.
You may , perhaps curious to know how one can manage to receive high yields .
There is no initial capital needed You may commense to receive yields with as small sum of money as 20-100 dollars.
AimTrust is what you need
The firm represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with offices everywhere: In USA, Canada, Cyprus.
Do you want to become a happy investor?
That`s your chance That`s what you desire!
I`m happy and lucky, I started to get real money with the help of this company,
and I invite you to do the same. It`s all about how to select a proper partner utilizes your funds in a right way - that`s AimTrust!.
I take now up to 2G every day, and what I started with was a funny sum of 500 bucks!
It`s easy to get involved , just click this link http://qofyzebave.angelcities.com/qazupex.html
and go! Let`s take this option together to feel the smell of real money
Post a Comment