Wednesday, July 11, 2007

Tax Cuts For The Rich Burden You and Me

Two recent stories point out the failure of the 'peoples government of Canada' to meet the peoples need. Instead they have passed on the tax burdens once again to Johnny and Janey Canuck. And these assessments don't come from the Left but from the Right.

Basically reminding us that Jim Flaherty's much vaunted Tax Fairness is not.

Misdirected Tax Reforms Driving High Canadian Tax Rates: C.D. Howe Institute

Targeted tax relief doesn’t cut it, think tank says

Workers bear the brunt of taxation with high personal income, payroll and sales taxes, the report stated, with the Canadian effective tax rate on labour at 45.9%, down slightly from 46% in 2006.

"As economic studies have shown, the effect of such high effective tax rates on employment income is to reduce the incentive to work, especially for secondary workers in the family," said the report.

- Finance Minister Jim Flaherty is urging provinces to go for a tax change that would shift billions of dollars a year in corporate taxes to the shoulders of individuals.

In this year's federal budget, Flaherty renewed Ottawa's push to get all provinces to harmonize their sales taxes with the goods-and-services tax (GST).

However, full harmonization by the five provinces that still operate retail-sales taxes --Ontario, B.C., Saskatchewan, Manitoba, and Prince Edward Island -- would shift $7.5 billion in what is now a tax on businesses to consumers, a new report estimates.

In Ontario alone, the shift would amount to $5 billion annually, said Jonathan Kesselman, a public policy professor at Simon Fraser University. "It's large," he said in an interview, adding that it's been a bit of a political sleeper.

"Harmonization's Achilles heel continues to be the visibility of the large tax-burden shift from business to consumer," Kesselman writes in the latest edition of Canadian Tax Highlights, a Canadian Tax Foundation publication.


Tax Fairness For The Rich

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