A couple of weeks ago I posted a quote by Winston Churchill on my Facebook page; the quote was, "There is no such thing as a good tax." Boy did that ever generate a LOT of comment.
C.S. Except
when that tax pays for things that benefit society, that help people who need
help, that makes sure our children are educated and that people receive medical
treatment, that helps to make sure that everyone is taken care of.......etc
etc.
ME: True ... but look at the wording ... "good" tax
There really is NO good tax as taxes inherently impact the 'total' population to unequal degrees. That being the case, ALL taxes should be carefully thought out, and planned, to get maximum benefit, and to be applied across the board as fairly possible.
A good example (to me) is the Carbon Tax which is very much unequally applied across the province -- hitting those in the interior and north far more than those to the south and in the larger cities.
We have the same thing now with tolls. Some area that have had transportation infrastructure already completed, are seeing people driving free and clear of tolls -- however, people in other areas are now being targeted for tolls as new projects are completed.
Churchill is right ... There is no such thing as a good tax
There really is NO good tax as taxes inherently impact the 'total' population to unequal degrees. That being the case, ALL taxes should be carefully thought out, and planned, to get maximum benefit, and to be applied across the board as fairly possible.
A good example (to me) is the Carbon Tax which is very much unequally applied across the province -- hitting those in the interior and north far more than those to the south and in the larger cities.
We have the same thing now with tolls. Some area that have had transportation infrastructure already completed, are seeing people driving free and clear of tolls -- however, people in other areas are now being targeted for tolls as new projects are completed.
Churchill is right ... There is no such thing as a good tax
C.S. I disagree. Taxes are not good or bad. They are a necessary
part of any society that believes that some things are a collective
responsibility.
ME: Necessary? -- yes
I agree -- but again the trouble in most cases, I believe, is they are not
well thought out. They often are a knee jerk reaction to financial distress
governments in most cases have created themselves.
Personally I am in favor of a flat tax, that would apply equally to all across the board, to all above 'above' a set income level
Personally I am in favor of a flat tax, that would apply equally to all across the board, to all above 'above' a set income level
E.W. -- in reply to CS ... "To make sure everyone is taken care of . . ."
Therein lies the problem - everyone - rather than those in genuine need due to
circumstances beyond their control. Having everything "free" to all
who demand is what has caused many of the problems we endure today. A little
more self-reliance and personal responsibility would go a long way.
L.M. Therein
lies the difference between a Liberal Democrat and a Conservative....makes the
world go around...slowly, but around.
C.S.
Our systems are wholly inadequate, and
mismanaged - I agree. I don't support the concept of a flat tax, however.
What's the statistic.....90 percent of the wealth is held by 10 percent of the
population? The rich get richer, and the poor get poorer. A flat tax does
nothing to address that - in fact, it makes it worse. Unless ALL tax
breaks and write-offs were eliminated.
M.U.
That's the theory behind a flat tax -
although it could contain a Minimum base level so nobody under a certain income
would pay taxes. That could really be set at any standard that governments
chose. With no other deductions, "the rich" would pay a percentage of
their total income with no other deductions. That would make it fair. Hopefully, that
would eliminate the income tax claw-back for old pharts like me who live on
CPP. Sounds fair to me.
C.S. And the corporate
tax structure would need to be looked at, as well. This race to the bottom on
corporations paying their share is not working. We cannot and should not try to
compete with countries that are not on a level playing field when it comes to environmental,
labour and other laws and standards that we consider important as a society,
and that do not have the social systems in place that our taxes pay for.
Unfettered free trade does NOT work.
S.B.
You would have loved Peter Pockington who
campaigned on a flat tax of 10%, but really he was only gathering support and
votes for Mulroney to be leader of the Progressive Conservative Party. Their
scheme worked. Mulroney became our Prime Minister. Peter "Puck" went
his merry way into bankruptcy and other schemes that brought him trouble. I don't know why the flat tax idea won't fly
among those who get in power...
ME: Personally??? I
think it's because a Flat Tax is too simple, and can't really be manipulated.
This current BC Liberal government for example has indeed reduced a few taxes on us, but all the new hidden ways of taking from us, along with the carbon tax and HST, have all ended up with us having LESS in our pockets
AND ... if the NDP are elected next year -- you can expect even more new ways to squeeze a dollar from us
S.B.
Just proves power corrupts and absolute power
corrupts absolutely. I'm very discouraged and cynical of all politicians now,
and today I'm only a voter who picks my battles to support, like evil fish
farms and dirty oil pipelines. I never
thought I'd be defined as a tree hugger, but I also never thought our
provincial and federal governments would sell our sovereignty and clean
environment out from under us either.
M.U. in response to C.S. When will people
get it-corporations don't pay taxes, they simply collect taxes from us and pass
them on to government. People need to get off that agenda of corporations
having an unfair advantage. They don't. If taxes go up they can't compete with U.S., China, etc. and we lose the
economic activity that comes with it. Raise corporate taxes and you and I pay
more for the product.
M.H.
Don't underestimate the lobbying power of CGA
et al. If we went to a flat tax there would be A LOT of tax accountants out of
business.
Many people really believe what M.U. is talking about where the truth is Corp. Income taxes are the dumbest thing ever invented by government. People truly believe lowering taxes will end up in reduced government revenue. Even Michael Levy on CKNW talks about lost revenue due to cutting tax rates. He doesn't make the cross over to real driver of revenues - economic growth.
Ask the average person about the Laffer Curve. I'll bet dollars to donuts 99% of them won't have a clue what you are talking about.
Many people really believe what M.U. is talking about where the truth is Corp. Income taxes are the dumbest thing ever invented by government. People truly believe lowering taxes will end up in reduced government revenue. Even Michael Levy on CKNW talks about lost revenue due to cutting tax rates. He doesn't make the cross over to real driver of revenues - economic growth.
Ask the average person about the Laffer Curve. I'll bet dollars to donuts 99% of them won't have a clue what you are talking about.
A flat tax combined with a
corporate user pay system is by far the best system. When companies pay for
something, it is because they see value in it. Complex subject, but the
economic ignorance of the general population is astounding. Not necessarily
their fault mind you. How many personal, micro or macro economic courses did
you take in high school? Funny, how money management, the one skill EVERYBODY
needs no matter what his/her lot in life is, is not taught. Things that make
you go hmmmm.
ME: There is a lot of
'common sense' stuff that regrettably isn't taught in schools -- agreed!
P.D.
Speaking as a CA, all a flat tax would do is
reduce the number of tax brackets to one. The tax brackets take up about half a
page in the Income Tax Act, which is about 4 inches thick. Even if you
eliminated all tax credits except the basic exemption, it wouldn't put too much
of a dent in the Act. Much of what CRA and taxpayers fight over is what should be
included in income, and what should be deductible. Per CRA, the deductions
should be limited to what is "reasonable under the circumstances",
and taxpayers and CRA often have a different interpretation of what that means.
No flat tax will end that argument.
ME ... in
response to D.P. But there has to be a way to simplify all aspects of this
thing. Has it not just simply gotten more and more complicated over the years
as government simply manipulated things to squeeze every nickel they can, with
making it look like they are?
D.B.
Government must learn to say "no".
People want everything delivered by the government. Hello.. the government is
"us". And where pray tell does the $$ come for all the bells and
whistles.. our pockets (via taxation). People.. want a decrease in taxes? Stop
asking for stuff you can do yourself.
C.S.
Profitable businesses should pay taxes.
People that can afford to pay taxes should. I find it strange that the same
people who target funds spent on lower income programs and assistance rarely,
if ever are as vocally critical of corporate welfare, and tax write-offs for
business and upper income earners. Those that can afford to pay, should. Simple
as that. And we have a compassionate society - at least I thought we did - that
makes sure that no one should go without the basics - food, shelter, warmth,
medical, education, human rights, fair access to justice, etc. That is the Canada I belong
to.
M.H. ... in response to CS ... I've
been trying to think of how to put it in a relatively short note how while your
intentions are honorable they are actually counter productive to the goals you
desire.
The adage businesses are people is
true. Companies have to sell at market rates (barring subsidies). Nobody can
force people to take money out their pocket and hand it over. Taxing business
drives investment out. Driving businesses out decreases wealth and removes
opportunity from the very people you are trying to help. Tax more, drive more
business out, and create a lower living standard.
I doubt anybody here doesn't
believe in the safety net but in order to minimize the number of people who are
economically depressed and raise the number of people who can afford those
attributes you speak of, they can't be given it. They need to earn it. if we
start providing food, shelter, etc. we start eroding the resources required to
pay for those.
Don't get me wrong, I'm not
talking about the mentally and physically challenged. I'm talking about the
vast majority of the population who is perfectly capable of holding and
performing jobs.
In fact, I learned one of my
greatest lessons when I was teaching skiing to the handicapped in Ontario. While they all
recognized they needed assistance, the one thing they all agreed on was
contributing to society through work, however menial we may have considered it,
was their best therapy. Where I saw people with true handicaps loving working
and contributing to society, it made me realize there are a lot of people who
argue for their limitations and by doing so, achieve them.
I recognize this is just the tip of the ice berg but you can't teach the effects supply and demand curves in one easy lesson. Milton & Rose Friedman's "Free to Choose" was a great book for understanding the wealth destroying nature of socialism. Note, it was written in 1980 so the examples are stale but the concepts are still quite accurate. There's a whole video series on You Tube too.
D.B. We
were put on earth to work and be useful. We all have unique strengths and
skills. We all have something to give back to society. Now go out and do it!
This was an interesting conversation, and perhaps you may have a few suggestions and ideas you would care to add? If you do, I hope you'll take a moment to post them.
This was an interesting conversation, and perhaps you may have a few suggestions and ideas you would care to add? If you do, I hope you'll take a moment to post them.
I'm Alan Forseth in Kamloops, with the thoughts of one conservative.
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