Is Taxing the Rich a Viable Solution?
Most everyone wants fair play when it comes to their tax obligations. This means that most feel that the taxes that have to be paid should be done in a fair manner with everyone paying their fair share. There has been a lot of talk in the last year especially about the tax havens that have been taking place with offshore banking. This is spurred many individuals into thinking that those that can afford to hide all this money should be paying a good majority more of the taxes to keep the country running. Often what goes hand-in-hand is tax fairness in conjunction with legal tax planning. Most often what happens with those that have the resources to really do innovative tax planning is that they are able to find loopholes in the law that allow them to escape the large tax bill. The experts in the field of taxes often will put their heads together and try to come up with what they feel would be great options in comparison to the way that the tax system in Canada is now today.
The situation that we are in today is relatively simple in that if you make more money then you are supposed to pay more tax plus pay a higher percentage on each dollar that is made. The big question that arises is, should those individuals with the big money pay one and a half times more of a percentage or should it be three times as much? There are some provinces that have tried a different approach such as the flat percentage tax rate. What this would mean is that there would be the same percent tax rate placed on both personal and business income.
In an ideal world if there was only personal taxes that had to be dealt with then it could be a flat dollar amount per each adult.
While these are all suggestions there are none of them that that appear to be the perfect solution. One thing that many do agree on is that the Canadian tax system is as it stands is one that is going to continue to falter and fail when it comes to equality and fairness.
One should remember the words of the now Prime Minister Justin Trudeau, who said that “we can do more for the people who need it by doing less for the people who don’t”. By increasing the burden of taxes on the high income earners it will provide some solutions but if it goes overboard then it’s going to have some definite drawbacks. Individuals will stop investing in businesses in Canada as there will be no incentive to do so.
In any event the government has a big task ahead of them to try and please everyone within the tax system which for most feel that this is a near impossibility.