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.
2 comments:
I don’t think that this is such a good idea. This shifts the burden of taxes more on the hardworking individuals. And this will probably lead to a decrease in tax received by the government, and because of lack of money, either the government will resort to cutting some of our social service programs, or our debt will increase by a lot. Of course, on average, many do benefit from this program (especially low-income earners) and would decrease the amount of people avoiding paying taxes.
- Cathy Pan
I also have heard about many cases of tax aviodance and I understand it is starting to hurt our economy.Although i like the fact that this plan is trying to equalize the balance and fairness between income trust and corporations, i don't really like the idea of shifting burden onto some individuals. How is this called fair? However, I'm strongly attracted by the reduction in general income tax. This huge tax reduction would bring many benefits to our citizens.
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