James Alexander Michie: Tax plans for Canada, in decline | National Post
Author: James Alexander Michie
The high tax plans in addition to the high deficit and low growth of Trudeau are worrying as they are falling, likewise, Canada’s fiscal policy is in ruins and its fiscal situation is deteriorating.
In the 2015 election campaign, Canadians were promised a balanced budget, albeit with some tax changes that favor low-income people. In addition to this, the Liberals said they would have a short-term deficit to cover investments in infrastructure generating employment while also claiming that they would lose $ 3 billion by cutting the second tax bracket, in revenues between $ 45,283 and $ 90,563, of the 22 percent to 20.5 percent, and that they would also recover it completely by increasing the maximum rate. But only weeks after the government had only been installed, when the finance department sinisterly declared that this exchange would not be a neutral net income. However, during 2016, the first full year of the liberal tax changes, the second parental tax reduction appears to have lost $ 817 million and the total income from personal income tax decreased by $ 5 billion.
Likewise, the tax on high-income people did not produce the $ 3 billion promised. Instead of that tax category, the one percent mistreated generated $ 4.6 billion less in federal taxes in 2016 compared to 2015 and about 90 percent of the decrease is claimed by sources from the Alberta Ministry of Finance. In 2016, more than 30,000 fewer Canadians were in the previous higher tax bracket, which started at $ 140,000.
Now, Canada has chosen the worst of all the available options which are higher taxes, substantial deficits, and low growth, with many belligerent discussions about withdrawing from NAFTA at World Trade Organization rates. For its part, the HST remains unchanged. There are those who suggest that all income taxes should be reduced below the US rates. UU and in turn increase the HST in all voluntary expenses, thus causing the payment of taxes to be practically voluntary, inducing behavioral changes towards greater purchases of goods and services within the economy, greater savings and less attention to the most ingenious methods to avoid taxes and move assets and cash flows out of the country.
On the other hand, it is good to mention that seven of ten provinces now have tax rates higher than 50 percent, which could be called theft and incompetence by the state.
Source: Conrad Black | National Post