Ch 4 Blog

Summary

http://www.fin.gc.ca/news06/06-061e.html

Jim Flaherty, Minister of Finance, has proposed a Tax Fairness Plan for Canadians. This plan is thought to be equalizing the balance and fairness between income trust and corporations. Moreover, the purpose of this plan is to help make sure that Canada's economy is continuing to propser and grow. Recently, there has been a continuing trend with coporate tax avoidance. Many major Canadian companies have intended to seek more favourable tax treament by capitalizing on some available tax rules. However, although these do help offer those companies with short term tax benefits, it is threatening Canada's long term economic growth by shifting burden onto those hardworking individuals and families. This has a great impact to the revenue for federal government to invest in Canadians because billions of dollars were earned less. This would also mean less revenue for provinces and territories. The measures in the Tax Fairness Plan includes for example a reduction in general income tax rate by 1/2 percent when it reaches January 1 2011. Measures in this plan presents a major tax reduction.

Relations to the chapter
This article relates to the chapter for it is also about government charging taxes on Canadians. The chapter has also mentions tax reductions with regards to income. To some extent, it benefits some canadians like those who are earning a lot, but it is a burden to those who aren't earning as much. People are always trying to seek for a plan that is fair for everyone. It also relates to the chapter by stating how it effects Canadian's economy with regards to the tax collected.

Personal Reflection
I personally think that this plan is quite a good idea to help stabilize Canadian's economic growth. For i think being equal is very important, although i willbe nice to those companies to pay less of a tax burden, however what about those who are not earning as much? They still need to pay for their own living and want to save more. I really don't think is it fair to shift burden to those invidvuals and families. Moreover, Canada's government is earning less too, when it is earning less, less will be invested in areas of services, thus this really prevents Canada's economy to prosper and grow.