How Much can Canada’s Top Income Earners Pay?
No doubt the rich here in Canada are not very happy about the increase in tax that they are going to have to pay under the new Liberal government. Many that have taken a look at this new change believe that the increased percentage that they are going to have to pay is insignificant compared to the amount of their income. It has been estimated that with this new tax revenue that the Liberal government will bring in is anywhere between $15.8 billion and $19.3 billion
If one looks back as to the various income sources that the government has had looking between the years 2012 to 2013, the government made 8.1 billion in tuition revenue from our colleges and universities. In regards to the infrastructure spending at that time it was estimated to be at 5 billion.
There are some interesting facts that have been gathered concerning the wealthy Canadians. Some refer back to the years 1997 to 2007 that shows that the 1% claimed to be Canada’s wealthiest received 32% of the income growth.
According to the Liberals plan, the premise is to raise the top income tax rate to 33% there are some that feel in this situation it could be jacked up to 50% at least. There are thoughts that if the rate was raised to 65% that the amount this would generate would make post secondary education free from tuition, and would be able to double the efforts of the infrastructure renewal programs.
While it is great to speculate what the wealthy can pay, what has to be remembered is that many of these wealthy are the ones that own the big corporations that employ a significant amount of people.
The government would be walking a fine line if they were to come across as hitting the wealthy too hard. It could end up backfiring and many of these companies would leave Canada which they now consider to be an appropriate tax leveling country.
There has to be some common ground where the wealthy accept the fact that they have had it good here in Canada for a very long period of time, and it is now reached a level where they are going to have to be more tax responsible. At the same time the government is going to have to look at the whole picture and only rock the boat enough that they are not tipping it.