Friday, October 21, 2011

Tax the rich?

The top 10% of Canadian income earners pay %0% of all income tax. The "rich"already pay. They are also pretty mobile. Mr Topp represents a clear choice for working Canadians. High taxes are bad for the economy and bad for Canada.

OTTAWA - Brian Topp is boldly going where most Canadian politicians fear to tread: promising to make the wealthy pay more in taxes.
The perceived frontrunner in the NDP leadership race wants his party to make higher income taxes for high-income earners a key plank in its next election campaign platform.
He told The Canadian Press he intends to unveil a detailed proposal in the weeks to come.
"I will be talking about income taxes and I think it's time for our party to step up to that plate and to be pretty clear about that because then we'll have a mandate to act if we're elected," Topp said in a wide-ranging interview.

He also called for a hike in corporate taxes and did not rule out a sales tax increase "at some point," once the fragile economy is on surer footing.
Calling for higher corporate taxes is a staple of NDP election platforms and is relatively safe ground politically. Even the Liberals, during last spring's federal campaign, promised to roll back a 1.5-percentage point reduction in the corporate tax rate, which took effect last Jan. 1, and to defer another 1.5-point reduction planned for next year.
But it's been decades since any Canadian politician dared talk about raising income taxes. Indeed, since the 1990s, taxes have been steadily reduced and parties have competed for the title of biggest tax slasher.

A good response from HM Minister of Finance.


vanillaman said...

Taxing the rich is a good idea. Like having a U.S style death tax that taxes all property over 5 million by 35%. Of course in the U.S there are so many lousy deductions that people pay little to nothing in death tax. In Canada if we had a chill death tax that barely even effected the top 2% of Canadian earners we could bring in 3 billion to slash the deficit. And it doesn't even harm are economy

Roy Eappen said...

Wealth has already been taxed. It is unfair to tax it again. Wealthy people are mobile and would leave.
The top 10% already pay 50% of all income tax.

Anonymous said...

I am not an expert but it does seem to me that if the government starts increasing income taxes on the wealthy they will move on to other places on the globe. And the corporations will leave for brighter prospects. Wasn't Canada just listed as the #1 country to do business by Forbes? So is Mr. Topps truly looking at Canada's best interest or does he have a global agenda with his socialist world connections as outlined in the NDP manifesto?

maryT said...

Vanillaman, please explain how this would work. Ever heard of the alternative minimum tax that applies to lots of Canadian taxpayers.
Are you suggesting an inheritance tax, or just a death tax, to be assessed when one dies.
The tax man does get lots of money when someone dies, via lawyers and accountants, probate fees and funeral expenses.

candice said...

I don’t think increase income tax is the same thing with taxing the wealthy. Tax on capital income has greater impact on the rich than the income tax. But the rich people are paying less than what they should is true. So tax the rich are a good idea but the question how should we tax them. For example, tax the investment income.

maryT said...

Investment income is taxed, and if the investor has a lot of deductions, the alternative minimum tax kicks in,which is an amount you would have paid with the deductions. It is more complicated than that, but they are taxed.
Investment income covers a lot of different kinds of income, including rental income. Those T5, T3s, and other slips are investment income. Careful what you wish for.
I think paying 29

Investment income is taxed, and a lot of taxpayers have said investment income. I think paying 29% on taxable income over 127,021.00 plus 26,880.00 on taxable income up to that amount is more than enough.
Those T5s and T3s are investment income. So is rental income investment income. Careful what you wish for.
I think a lot of people have no idea of the income that is taxed. There is total income on line 150 of the T1 general, and it is that figure that most programs are based on, gst refunds, child tax credits, OAS, GIS.
The money put into tax free savings accounts is taxed before contributions.
Nicole is yaking about seniors putting maximum money into those accounts and still qualifying for the GIS, but I think she is
wrong. I will check it out.

maryT said...

For some reason my last comment got lost and I started over, but it all come out in the post. Sorry.
As mentioned, all benefits are based on the total of line 150, added to your spouses total on line 150.
5000.00/yr is the max you can put into a tfsa.

maryT said...

Found it at the govt site. Nicole is wrong.
You can withdraw money from the TFSA at any time, for any reason, with no tax consequences, and without affecting your eligibility for federal income-tested benefits and credits.

Your Old Age Security (OAS) benefits, Guaranteed Income Supplement (GIS) or Employment Insurance (EI) benefits will not be reduced as a result of the income earned in, or the amounts withdrawn from, your TFSA.

The income earned in the account or amounts withdrawn from a TFSA will also not affect your eligibility for federal credits, such as the Canada Child Tax Benefit (CCTB), the working income tax benefit (WITB), the goods and services tax/harmonized sales tax credit, or the age amount.

Or your OAS or GIS

Any amt withdrawn does not even show up on your tax return.

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