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- Xref: sparky can.general:6366 can.politics:11678 soc.culture.canada:10343
- Newsgroups: can.general,can.politics,soc.culture.canada
- Path: sparky!uunet!cs.utexas.edu!torn!skule.ecf!pelton
- From: pelton@ecf.toronto.edu (PELTON MATTHEW ALAN)
- Subject: Re: Liberal Party Tax Policy
- Message-ID: <C1F6qD.DBI@ecf.toronto.edu>
- Organization: University of Toronto, Engineering Computing Facility
- References: <61TVXB3w165w@ersys.edmonton.ab.ca> <C1Eoz0.H7I@mach1.wlu.ca>
- Date: Mon, 25 Jan 1993 17:18:09 GMT
- Lines: 29
-
- In article <C1Eoz0.H7I@mach1.wlu.ca> dmccrea6@mach1.wlu.ca (doug mccready F) writes:
- >It always scares me when parties begin talking about doing away with a tax
- >like the GST and implementing a single tax or one geared to ability to pay.
- >Tell me why the GST is not based on ability-to-pay. If I can afford a new
- >car or whatever, am I not demonstrating ability-to-pay? What happens to new
- >investment? If it is shot down then we have fewer jobs and then we have
- >fewer tax payers down the road and the taxes for those still working go up
- >and they decide to leave and that causes taxes to go up further. I for one
- >would be one of those leaving and I provide the government with tax funds
- >every week of the year. Already I can pay less taxes if I move and the
- >marginal changes in tax rates are casuing me to think along those lines now
- >let alone with a more reprehensive tax coming from the liberals.
-
- The reason a sales tax or a GST is said no not be based on ability to pay
- is that it is a regressive rather than a progressive tax. People with higher
- incomes pay a larger percentage of their income for income tax; this progress-
- ive system is essential to a mildly socialist state like Canada. A GST,
- however, forces everybody, regardless of income, to pay the same amount every
- time they buy something. For poorer people, this translates to a higher
- percentage of their income; at the very least, disregarding the fact that
- richer people invest far more than poorer people, it is a flat-rate tax. A
- graduated income tax fulfills the principles of equalization much better than
- a sales tax.
-
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