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There was a study done in the States that showed the gov't could eliminate income tax and raise taxes on consumer goods (ie GST) and not lose money on the deal. I think that would be a great way to improve Canada. That way, the people who consume more, pay more tax.

Harper's plan to lower GST by 2% isn't gonna do shit to help lower income families. So they save a few pennies here and there, It's when a guy has to pay $7000 out of $40000 gross income that really hurts.

I say eliminate income tax, and raise the GST to say 15%.

Discuss

   

I know a person who was deducted 30% of her income in her first year teaching. I'm not sure if this is standardized for everyone because I dont have a job, but I don't think that putting the GST up 8% will account for the same amount of money versus 30% of income.

I haven't don't tests but it just sounds not right.

   

I think it would change the face of consumerism and some areas may get hurt by it . Tax dollars should be paid back to the rightful payer annually the same way it was recieved . (every penny) Wealthy people and corporations should pay higher taxes because under this method they would get it back anyway . This earth doesn't belong to any of us and neither should other peoples tax dollars .

   

I totaly agree.

   

Your version would hurt the poor not help. Those that fall below the poverty line don't wind up paying income tax. But a 15% GST ( plus the provincial sales tax in most provinces ) would actually add to their tax burden. Your system would on the other hand, help someone like me alot, since I buy very little in the run of a year and invest and pay down the morgage with as much as I can.

   

I think the problem with income tax is that is descriminatory by nature. The income tax system results in diffent social demands of each income bracket.

   

US estimates for eliminating income tax involves a sales tax upwards of 20%, some estimate it may be getting close 30% once you factor in the exemptions.

ignoring the underlying problems with a consumption tax, you're going to be paying a heck of a lot more then 15% considering that as a percentage of GDP canada taxes a heck of a lot more then the US. (35.8% as opposed to 29.6%)

If we used one of the lower estimates of 21% for the states, 25.4% is a better estimate, ontop of provincial sales tax.

As for the problems of the sales tax...

1.) It hits the poor the hardest and essentially means that the richer you are the less you pay as a percentage of your income
2.) It decreases consumption thus hurts the economy
3.) It damages those who have the most dependents, if you have children, a wife, etc. you will be paying a higher percentage of your income out

It is a poor economic policy, and its political suicide

   

Yup.

   

But needs aren't similar.

Once you cover basic needs, additional money is fine, but is not crucial.


If you make $40,000, taking $5,000 for taxes can be make a hell of a big difference.

If you make $2,000,000, $5,000 is barely noticable.

Not to say that government should take based on some lunatic scheme of who is morally justified in having what, but, if it's going to take something it might as well be from people who will be harmed the least.

On the news today, in the United States, the top 5% of earners pay 59% of of the tax burden. The guy was complaining, but thhat sounds fine to me.

   

fine perhaps but fair?

   

??? what are you going to call fair? Charge everybody $10,000 and let them find a way to pay?

"Okay Grandma, we know you're 92, but pay up or we take the house."

   

Well I suppose it wopuld be more pay or the police don't have to protect you any more. But I think consuption tax could be a viable alternative to income tax.

Of more urgency is cutting the many unncessary programs and unefforcable laws this country has.

   

Not to beat a dead horse, but let me put it this way.


Somebody making $40,000 probably spends everything he has and saves very little at the end of the year. So, he's consuming everything he takes in.

That's GST and PST on everything he makes.


Somebody making $2,000,000 spends a good deal, but he also puts half in savings, investments and retirement packages. ---So he only consumes half his income.

So that's GST and PST on half his income.


Why should he pay taxes on only half of what he's making?


Is that clearer?

   

Yes and if a person earns $10 000 in profits but aquieres $2 000 000.00 in machinery then when they retire have an auction sale loose half to the tax department, because they are in the top tax bracket then pay $1 200 000 in debts they suddenly don't have enough to live and zre going from pension check to pension check.

   

Eliminate the income tax and the GST!

   

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