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M1917 Enfield
06-13-2017, 09:14 AM
http://business.financialpost.com/fp-comment/stephen-jarislowsky-our-tax-system-is-now-so-unfair-it-will-push-productive-people-to-leave-canada


Our tax system is now so unfair it will push productive people to leave Canada


Over the past year, I have been watching the fine work of the late James Flaherty, our previous finance minister, become quasi destroyed. His policy was based on a balanced budget — or better — and a reduction of the sales tax in a number of small decreases. While the sales tax policy remains, the balanced budget is gone with a national deficit of some $30 billion in 2017 after a slightly lower one in 2016.

The deficit is in addition to an increase in the top federal tax rate from 29 to 33 per cent, a 13.8-per-cent increase in one year. With just under 50 per cent of the population paying no taxes on income, those earning over $200,000 annually continue to carry the load. The increase not only raises the income tax rate, but automatically the rate on capital gains, which is fixed at one-half the income tax rate.

To love their work and their country, entrepreneurs must feel treated fairly by the tax system

This profligacy, leaning as it does on political populism, is highly discouraging, not only for any ambitious people in Canada, but especially for young entrepreneurs and patriotic people trying to build Canada’s private sector. Would I, as a young entrepreneur, settle in Canada or stay in Canada with an income tax that in most provinces takes well over 50 per cent of my income, plus a 15-per-cent sales tax?

Even if that were all the tax payable, I would look for greener pastures. But of course there are all the other taxes on real estate (municipal and school taxes), hidden taxes (liquor, gasoline, etc.) and the inflation tax on my bond and cash savings, currently around two per cent. Moreover, due to the ravages of inflation on fixed monetary values (cash, mortgages, and bonds), the “real” capital gains tax on all but very short-term investments pushes the tax well above that of half the income tax rate.

As an owner of a business, were I to sell it after many years, the capital gains tax would hit fully all past cumulative inflation that took place in those years. If the sale price did not exceed the accumulated inflation, I would be taxed on a real loss. This in contrast to a short-term stock market gambler, who obviously is little affected by inflation if he owns shares for, say, six months.

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You do not build a prosperous nation by excessively taxing those who create prosperity and jobs, now and in the future. History has taught us this time and again, whether you look at the Dutch Republic in the 17th century, Great Britain during the Industrial Revolution or the United States in the post-World War II period. Then, the nation’s builders were encouraged!

To over-tax productive people is to push them to leave Canada. It is a counterproductive, self-destructive policy. To be excellent and to love their work and their community and country, entrepreneurs and other productive people must feel that they are being treated fairly by the tax system. Young people with excellent abilities should not be educated in Canada, Quebec or Ontario only to leave for Singapore, Hong Kong, Germany, Switzerland or the U.S. to make a successful career.

It is time the leaders of all parties wake up to this fact. All the talk of “infrastructure” or “the middle class” combined with excessive taxation and vote buying through spending will not solve our problems, nor will low interest rates that lead to real estate bubbles.

There is nothing gained by discouraging dedicated people and great entrepreneurial companies like Saputo, CGI and Couche Tard in Quebec. If they leave, would that be a gain for either Quebec or Canada? It is time for fairness, ethics and common sense and long-term thinking to take a hold, to make this a better country. The slogan of the Order of Canada, “they desire a better country,” says it all!

Stephen A. Jarislowsky is founder and chairman emeritus of Jarislowsky, Fraser Ltd. and co-founder and director of the Canadian Coalition for Good Governance.

Dewey Cox
06-13-2017, 09:24 AM
It says just under 50% of the population is paying no tax on income.
Is that accurate?
If it is, that's terrifying.

goosesniper
06-13-2017, 10:02 AM
http://business.financialpost.com/fp-comment/stephen-jarislowsky-our-tax-system-is-now-so-unfair-it-will-push-productive-people-to-leave-canada


Our tax system is now so unfair it will push productive people to leave Canada


Over the past year, I have been watching the fine work of the late James Flaherty, our previous finance minister, become quasi destroyed. His policy was based on a balanced budget — or better — and a reduction of the sales tax in a number of small decreases. While the sales tax policy remains, the balanced budget is gone with a national deficit of some $30 billion in 2017 after a slightly lower one in 2016.

The deficit is in addition to an increase in the top federal tax rate from 29 to 33 per cent, a 13.8-per-cent increase in one year. With just under 50 per cent of the population paying no taxes on income, those earning over $200,000 annually continue to carry the load. The increase not only raises the income tax rate, but automatically the rate on capital gains, which is fixed at one-half the income tax rate.

To love their work and their country, entrepreneurs must feel treated fairly by the tax system

This profligacy, leaning as it does on political populism, is highly discouraging, not only for any ambitious people in Canada, but especially for young entrepreneurs and patriotic people trying to build Canada’s private sector. Would I, as a young entrepreneur, settle in Canada or stay in Canada with an income tax that in most provinces takes well over 50 per cent of my income, plus a 15-per-cent sales tax?

Even if that were all the tax payable, I would look for greener pastures. But of course there are all the other taxes on real estate (municipal and school taxes), hidden taxes (liquor, gasoline, etc.) and the inflation tax on my bond and cash savings, currently around two per cent. Moreover, due to the ravages of inflation on fixed monetary values (cash, mortgages, and bonds), the “real” capital gains tax on all but very short-term investments pushes the tax well above that of half the income tax rate.

As an owner of a business, were I to sell it after many years, the capital gains tax would hit fully all past cumulative inflation that took place in those years. If the sale price did not exceed the accumulated inflation, I would be taxed on a real loss. This in contrast to a short-term stock market gambler, who obviously is little affected by inflation if he owns shares for, say, six months.

Related
Rob Merrifield: Politicians killed Canada’s low-dollar advantage by piling on carbon taxes and environmental red tape

Another multinational employer is fleeing Ontario and the Wynne government doesn’t seem to care

You do not build a prosperous nation by excessively taxing those who create prosperity and jobs, now and in the future. History has taught us this time and again, whether you look at the Dutch Republic in the 17th century, Great Britain during the Industrial Revolution or the United States in the post-World War II period. Then, the nation’s builders were encouraged!

To over-tax productive people is to push them to leave Canada. It is a counterproductive, self-destructive policy. To be excellent and to love their work and their community and country, entrepreneurs and other productive people must feel that they are being treated fairly by the tax system. Young people with excellent abilities should not be educated in Canada, Quebec or Ontario only to leave for Singapore, Hong Kong, Germany, Switzerland or the U.S. to make a successful career.

It is time the leaders of all parties wake up to this fact. All the talk of “infrastructure” or “the middle class” combined with excessive taxation and vote buying through spending will not solve our problems, nor will low interest rates that lead to real estate bubbles.

There is nothing gained by discouraging dedicated people and great entrepreneurial companies like Saputo, CGI and Couche Tard in Quebec. If they leave, would that be a gain for either Quebec or Canada? It is time for fairness, ethics and common sense and long-term thinking to take a hold, to make this a better country. The slogan of the Order of Canada, “they desire a better country,” says it all!

Stephen A. Jarislowsky is founder and chairman emeritus of Jarislowsky, Fraser Ltd. and co-founder and director of the Canadian Coalition for Good Governance.

We must have been the same person in a previous life. So correct on many levels. Ya wonder why people try to earn money under the table. A cash deal for someone goes a long way. Say a business person. No IT, Payrol taxes.
Id like to see more bartering and trading done for services. Its not a lot of extra cash but out of the governments hands at least. Im not sure if there is a tax on traded goods? Or traded services. If not, im sure the feds will figure out a way to tax it if it were more prevalent. They tax everything else. I know one thing is for sure. An extra 500 cash in my account would go a long way. I didn't vote to give it refugees, or social programs. Im working so other people can eat. Not my version of survival of the fittest. Get a job, pay your taxes, vote conservative and things will work out. If you think billions in deficits is going to pay for itself, think again. It only gets paid back from my back breaking work I work harder and get less. Go figure?


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M1917 Enfield
06-13-2017, 10:16 AM
It says just under 50% of the population is paying no tax on income.
Is that accurate?
If it is, that's terrifying.

The smallest percentage of income taxpayers (those earning over $150,000) also pay out the most in income taxes in Canada. Those with incomes under about $13,000 after deductions and credits pay little or no taxes after those tax rebates in effect! In Quebec a income of $12,995 has a income tax rate of just 0.04% which means a person earning that would owe only $5 in income tax.


How much money can I make before paying taxes in Canada?

For 2017, every taxpayer can earn taxable income of $11,635 ($11,474 in 2016) before paying any federal tax. The basic personal tax credit is calculated by multiplying the tax rate for the lowest tax bracket by the basic personal amount. The 2017 tax credit is 15% x $11,635 = $1,745 (15% x $11,474 = $1,721 in 2016).

As of 2014, the maximum payout you could collect from CPP was $10,614.96 per year. For Old Age security the maximum you can get was $6,069.96 per year. Add those numbers together and you get $16,684.92 as a maximum payout but the average payout is just under $12,000.

In Communist Canada the wealthy and those hard working support and pay more for the majority who are either poor or who collect welfare!

Over 95% of Canadians earn less than $30,000 a year.

http://www.budget.gc.ca/2015/docs/images/4.1.2-eng.jpg

StatsCan Canadian Income numbers

http://wpmedia.business.financialpost.com/2015/04/fe0429_taxsharequintile_c_jr.jpeg?quality=60&strip=all&w=620&h=419

Grey_Wolf
06-13-2017, 10:19 AM
We must have been the same person in a previous life. So correct on many levels. Ya wonder why people try to earn money under the table. A cash deal for someone goes a long way. Say a business person. No IT, Payrol taxes.
Id like to see more bartering and trading done for services. Its not a lot of extra cash but out of the governments hands at least. Im not sure if there is a tax on traded goods? Or traded services. If not, im sure the feds will figure out a way to tax it if it were more prevalent. They tax everything else. I know one thing is for sure. An extra 500 cash in my account would go a long way. I didn't vote to give it refugees, or social programs. Im working so other people can eat. Not my version of survival of the fittest. Get a job, pay your taxes, vote conservative and things will work out. If you think billions in deficits is going to pay for itself, think again. It only gets paid back from my back breaking work I work harder and get less. Go figure?


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Yes there is/would be if it is reported. You (both parties) would have to pay tax on the value of goods or services traded. Of course that relies on people reporting such transactions and the government does try to look for and prosecute those that chose not to report. If done in a large way it may be hard to hide, smaller deals on occasion may be hard for them to find if you keep it on hand and in cash. If you are audited they will look at all transactions in all your accounts and it is up to you to prove what that deposit was from. They do not have to prove that it was unreported income rather it is up to you to prove it wasn't. There is no innocent till proven guilty in the tax system.

Dewey Cox
06-13-2017, 10:54 AM
The people who have the smallest stake in our countries finances have the biggest say in how we spend our money.
How could anything possibly go wrong with that?

Lee Enfield
06-13-2017, 01:03 PM
Have been told in the UK "under the table" work is a huge issue, we are going to be in that same position very soon.

No issue paying tax, problem is when you see the village idiots wasting our money at every level of gov't people decide enough is enough and the underground economy flourishes.

Apparently there is a underground economy in a small town close to where I live, from what I have been told the income tax people have tried to crack it with no results.

FlyingHigh
06-13-2017, 01:18 PM
If someone offered me $30 per hour with decent health insurance in the US, I'd probably move the next day. Im sorry, I no longer love Canada. I consider myself now a citizen of convenience. Its currently more convenient, but not economical, for me to be here. Given the right opportunity there's a very good chance i'd leave.

goosesniper
06-13-2017, 02:27 PM
Whats the new poverty line. It must be around 18k. Anyone??


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triq
06-15-2017, 08:23 AM
If someone offered me $30 per hour with decent health insurance in the US, I'd probably move the next day. Im sorry, I no longer love Canada. I consider myself now a citizen of convenience. Its currently more convenient, but not economical, for me to be here. Given the right opportunity there's a very good chance i'd leave.
No need to apologize. You are not alone.

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SeirX
06-15-2017, 10:53 PM
If I recall correctly, the poverty line (for Ontario) is $25K.

I remember reading that and thinking "S#/t! My 3 roomies and I live pretty well working full time at minimum wage, while living in a 1-bedroom outhouse"

It's not just the income tax system... businesses and personal taxes need to be lessened, help new business come in and grow, and more money in people's pockets mean they tend to spend more, stimulate that there liberal-murdered economy