Income tax is a costly system and easily manipulated (by the government to control behaviour as well as by taxpayers). Tax spending with a GST of 20% and eliminate tax on income.
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Submitted by Gabriella on August 10, 2022 - 9:40 PM
I just worked a 50 hour work week and I still can’t afford my rent. This is a PROBLEM. I am not the only one. Soon the govt will regret doing this to us when we stop consuming and stop working. This is out of hand and ridiculous for a “first world country” when your average middle class citizen can barely afford to eat. Sad.
Submitted by Austin on August 09, 2022 - 12:11 AM
Income tax is a result of the Income War Tax Act of 1917, it was intended to finance about 100,000 military personnel needed to continue the war effort overseas during WWI. It was a 4% tax and was supposed to be eliminated after the war. Canada is a country rich in resources and there is absolutely no need for income tax if we have responsible politicians acting with the nations best interest at heart.
Submitted by Joshua Daniels on July 27, 2022 - 9:43 PM
I work like a dog just to pay insane amounts of taxes to a government that's becoming more corrupt buy the year. Lower the taxes, and back off. You serve us, we do not serve you.
Submitted by Mike on August 04, 2022 - 7:30 PM
They’re so corrupted It’s only going to get worse. We suffer while they live high
Submitted by Dillon on July 18, 2022 - 4:05 PM
Income tax was only ever supposed to be temporary to repay our World War 2 debt which was paid off years ago
Submitted by Elizabetb on July 07, 2022 - 8:13 PM
I’m credibly annoyed that 1/4 of my pay is going to taxes. I work hard for my money.
Submitted by Rachel on July 23, 2022 - 10:29 PM
Its more like 60 to 70% tax. They tax are income, they tax are every day perches, you get taxes if you buy a hour or a car. Every cent we spend gets taxes
Submitted by Anonymous on July 05, 2022 - 9:59 PM
The lower class is being ravaged by cost of living, substandard wages, and yet the government still steals massive portions of my earned income. These politicians are an absolute joke, wasting taxpayer dollars while the average MP in this country takes home $185k annually. An absolute disgrace.
Submitted by Marvin marshall on July 28, 2022 - 4:22 PM
The government hogs are at the trough and corrupt leadership is the new norm . What to hell is wrong with canada ? Wake up !
Submitted by Todd Harvey on June 09, 2022 - 2:45 PM
I agree totally, our government is bloated and inefficient, income taxation is a huge part of government and is not necessary in my opinion.
Submitted by Anonymous on May 29, 2022 - 6:39 AM
It's time to eliminate the income tax. Taxing our income and taxing us on Goods and Services is hurting Canadians' pockets. It's time to move on from the old system.
Submitted by raven snider on May 25, 2022 - 5:37 AM
Get rid of the tax income. The government is corrupt in canada along with the polticans. The corruption needs to end in canada. 20% is high maybe start at 10 % and collect the data go from there
Submitted by T on April 22, 2022 - 12:50 AM
Income tax was brought in during world war 1 and was supposed to be temporary to raise war funds. It never went away after that.
Raising consumption tax makes more sense, but not raising it to a point that is matching a 50% increase. Let people be rewarded for hard work in Canada, because it’s very discouraging now. Also, go after the people hiding money overseas and in properties from abroad.
Make the CRA accountable for giving wrong advice to taxpayers.
Submitted by Brigham on April 19, 2022 - 10:57 AM
Removing income tax while increasing the GST or HST on purchases would be an excellent solution. It would allow more money to move into the economy and be a fair system for all Canadians.
For those unable to hide money to avoid income tax like the wealthy it would level the playing field.
Submitted by Richard Sieben on April 17, 2022 - 11:56 PM
The income tax act needs an overhaul. Firstly there should be a Commission formed to look for solutions to replace the burdensome income tax and make recommendations. The Income Tax Act was formed in 1917 to fund the war effort and was suppose to be temporary. We still have the income tax act! My recommendations are as follows…
A flat tax rate of 5% of gross earnings. Never mind the deductions.
20% GST on all purchases including private sales.
Charge tolls at government built roads like the TCH, Alaska Highway, Highway 401 just to name a few
Charge more for government services
Submitted by Katie on April 16, 2022 - 6:02 PM
Absolutely eliminate income tax! People work very hard for the minuscule pay that they earn, and then get taxed on every dollar that they earn and/or spend. Not to mention the ridiculous cost of fuel, food, housing, utilities, etc.. Sadly it’s becoming impossible to stay afloat for so many, simply because of greed, and it doesn’t have to be that way.. Reduced tax rates could help boost saving and investment, which would increase the productive capacity of the economy and grow wages. That would incentivize people to work harder and even lower unemployment rates. But realistically, the entire system needs an upgrade in order to make things better for everyone…
Submitted by Shahik on April 15, 2022 - 1:11 AM
People want to increase taxes on the rich. All that is doing is making it harder for people of no wealth to ascend to wealth. The top one percent will always find a way to make it look like they have a low income, whether it be through stocks, charities, or a business. If we tax based off consumption, that issue is eliminated.
Submitted by david tully on April 03, 2022 - 4:59 PM
people here have it all wrong. we need an electronic consumption tax at 3 to
6 percent on all electronic transactions which will raise enough revenue to pay off budget deficit and public debt within 6 weeks and not a dime would be borrowed to fund government programs any longer.
Submitted by James Hinds on April 01, 2022 - 12:02 PM
I agree however, the Justin Trudeau government appear tone deaf. Rising cost of living and stagnant salaries continues to hurt Canadian families. But I don't see the Liberals doing anything to help families except continuing to tax.
Submitted by Nain on March 31, 2022 - 8:46 PM
Income Tax is a scam run on the taxpayers to fund wasteful govt. policies, pensions of politicians (and their lifestyle). The more govts expand, the worse off the hard working sections of the society are. Why do we have this "free" healthcare? It is inefficient and slow (patients don't even get timely treatment). Let people decide what they want to do with their money. Now they are coming up with "free" dental care and pharamacare, like seriously? I am not paying for people who don't take care of their health. This socialism has to stop. I want my money in my pocket, I worked my tail off for getting educated and then find work. I don't want to support Syrian/ Ukrainian refugees, homeless, low income earners. Their condition is not my fault, if politicians are so worried about them, use your own money to support them but I want my money in my pocket.
Submitted by JSingh on March 24, 2022 - 10:21 PM
As a family of 6 we lose motivation to work harder to get ahead because of the taxation system. By working less we get more benefits, ie child benefits, medication, soon to be dental etc. We are essentially doing circles financially and by working harder we get discouraged at tax time. Like what was the point doing 14 hours a day 7 days a week when someone barely working is achieving the same lifestyle. Essential goods such as food and toiletries should also be tax free. Luxury items, like a bmw or jewelry, tax it 35 percent. For those that want to work let them achieve. Thanks.
Submitted by Kyle on March 24, 2022 - 8:34 PM
Tiered sales tax %, based on net worth of individuals (not income) for goods that are not essential (i.e. not groceries, energy, healthcare etc.). The richest people earn no income and only pay capital gains / dividend taxes, at best. They often pay less tax than average workers. The wealthiest people also often don't care about the price of luxury goods they purchase, so net revenues could increase (i.e. most tax haven islands only tax imports, which have severely high taxes but doesn't stop the wealthy residents from purchasing).
Submitted by Darryl on March 20, 2022 - 10:04 PM
Abolish income tax. It's a remnant of the past, like daylight savings time. Having HST go from 13%-20% seems like an overreach. Try 15% for one year and collect some data to see how it works, then consider a gradual increase. Consider incentivizing/encouraging citizens to spend more money domestically to capitalize on their increase in wealth (from not paying income tax) and collecting from HST. Also, make it possible to donate to government programs and departments and offer a tax credit, much like a political contribution, but it would actually be useful and citizens could directly impact funding for programs they find most important. Thank you.
Submitted by Gromit on March 19, 2022 - 6:21 PM
Eliminate income tax and make all taxes asset based.
Submitted by Yousef on March 01, 2022 - 2:28 PM
The income tax is a coercion with a smile on the governments face. The US did not even have an income tax until 1913, yet they were able to pay for many things through other means such as consumption and SIN taxes. Taxation on production leads to a dis-encouragement of growth. Abolish it.
Submitted by Grant on January 18, 2022 - 8:22 PM
20% seems too high for GST, give the treasury the ability to issue new currency units, GST sub 10%, and tariffs on goods that domestically out compete Canadian made goods.
Submitted by Alan on January 15, 2022 - 11:10 AM
At this point this is just a way to keep people poor. The minimum bracket is only viable for rural areas and majority of the career or skilled workers are being taxed half or more of their income since they have to pay tax twice or more.
Submitted by geoff wright. on January 12, 2022 - 4:56 PM
governments should have done this decades ago. the amount of 20% seems to high. 15% is more reasonable. To many greedy politicians involved in this right now for this to happen. But, the fact remains.. why should governmants be allowed to take taxes from you for anything other than essential services?
Submitted by Prateek on December 25, 2021 - 6:56 PM
Someone who works hard to earn more but lives frugally should not have to pay more taxes than someone who earns the same or more, finds the gaps in the system to avoid taxes and therefore manages to live like a king. Taxes based on consumption would be fair to all and debunk this myth that has existed for decades that because you earn more therefore you must owe more.
Submitted by Prateek on December 25, 2021 - 6:49 PM
All for contributing towards a safer, greener society in a way that is fair to all. When the government takes away half of what you earn it has a demoralizing effect on people's intent on striving for excellence. Somebody who works hard to get a dream job and then even harder to retain it and lives frugally with minimal needs should NOT be taxed more than someone who works convenient contracts, with half their household expenses claimed as "business costs" and written off so they can live like kings. Taxes based on consumption would be fair to all and debunk the myth that has existed for decades that because you've managed to work hard and earn more therefore now you must "owe" more.
Submitted by Christopher Fox on November 10, 2021 - 4:06 PM
Imagine working 25 years am making 30,000 a year, now tax that 21% and an additional 13% for purchases and now carbon tax and cpp, ei, ect. We pay 50% on taxes on our daily lives.
Submitted by Brian fox on November 10, 2021 - 3:59 PM
Taxes keep our people down emotionally, physically and financially. With income taxes the average person spends almost 50% of all their earned money on taxes alone. This is pathetic and disgusting especially when people are trying to get out of poverty and make a future.
Submitted by Liju on October 28, 2021 - 5:42 PM
High taxes will reduce spending & it will definitely impact business.
More cash inflow will result in more spending and that will help the business to grow . Abolish Income Tax & you will see the GDP growing
Submitted by Ravi on August 30, 2021 - 2:28 AM
Income tax should be abolished. We already pay tax on everything. Why is the government trying to use people’s hard earned money for its own gain? We all know the government does not need this money nor do they really use it. The liberals have been caught many times for pocketing this money and it’s not really being used on the economy. We already pay taxes on everything and should not have to pay tax on money we are earning.
Submitted by Joshua on November 16, 2021 - 7:43 PM
canada has this image of being clean but its as corrupt as any 3rd world country --the elites are just better at hiding it.
Submitted by Chris Hansen on August 13, 2021 - 8:32 PM
Adding an additional luxury tax would be benificial too.
Submitted by Jake W. on July 10, 2021 - 2:40 AM
It’s time for governments to find alternative ways to grow the economy opposed to just taxing the individual tax payer. Raising taxes to pay for stuff is the sign of a lazy government. Having income tax is good but it should only remain at a flat rate. Stop hurting the middle class.
Submitted by James on June 12, 2021 - 8:33 PM
Income tax can be entirelt surplanted by a high consumption tax.
Submitted by Victor on June 08, 2021 - 2:32 PM
Adopt a extremely simple flat rate tax system much like Hong Kong has. Taxes can be filed on-line as fast as it takes to turn the computer ON. Right from the start there would be no need to have a CRA with an operating budget of $5.1 billion a year, employing 40,000 +. Canada is a joke!
Submitted by A on May 29, 2021 - 5:51 AM
Agreed. It will be much fairer to tax people on the consumption rather than on their income. Income tax is just not right. It is also very high. No one wants to share much of his hard earned money with the government. Many of us tax payers don't really get much in return that justify the high amount we pay. Our tax system must be redesigned.
Submitted by j. raelson on May 10, 2021 - 12:22 AM
Only problem with that is if the GST is 20% then Quebec will add another 25% PST and we will be paying 55% tax on everything purchased
Submitted by Patrick Carre on January 22, 2021 - 6:53 PM
The current tax system is intrusive, replacing it with a progressive sales tax. Luxury goods can be taxed more, while necessities are taxed less. Also take a look at other methods of taxation like land value which would be more effective.
Submitted by Jesse Mowles on December 05, 2020 - 9:31 PM
Between losing 20% of my income to federal taxes and HST+GST, how are taxpayers able to save for the future?
When are we going to get to keep our hard earned money? Scrap the tax, let's get ahead.
Submitted by Anonymous on November 24, 2020 - 11:38 AM
Transaction tax is the future, it is a question of when. Additionally, transaction tax could vary depending upon the type of commodity purchased, basic necessities can have less transaction tax vs luxury goods
Submitted by Garnet McLaren on October 27, 2020 - 2:07 AM
No one likes income taxes. It was supposed to be temporary for WW1- which is clearly long over. Taxes on spending are generally better/maybe taxes on wealth or financial transactions.
Submitted by Anish Rangaraj on November 15, 2020 - 6:15 PM
I totally agree. There were many sources of revenue before the first world war. Those should be used again.
Submitted by Citizens on October 06, 2020 - 7:19 AM
Let’s get this passed as it would be great tool to fight COVID income issue.
Submitted by Arun Jain on June 27, 2020 - 4:01 PM
Our govt basic aim is to collect funds for running nation.The sources can be easy and without trouble to a common man . Collection of taxes at every source and every person is a complicated process.why not replace it with first point increase in few products and services like increase in fees or licence in mining ,crude oil, petroleum, telecom spectrum etc at one point only where it's under govt hold before circulation to common public. Corporates already supporting with majority of taxes . They can be made liable for more taxes with increase in their products margins .we can buy a biscuit @10 instead @5 if no burden seen of taxes.Buying petrol @3 dollars can fetch more than total country tax amount .it will boost economy with free trade and foreign investment
Submitted by Arun Jain on June 27, 2020 - 4:00 PM
Why India Should Abolish Personal Income Taxes?
Personal income taxes are omnipresent all over the world. From the developed nations to the developing ones, all tax the incomes of their citizens at different rates. There are only ten countries across the entire world where there are no income taxes. Out of these ten countries, six are from the Gulf peninsula. The governments of these nations derive a vast portion of their wealth from oil revenues. The other four are countries like Monaco and Bermuda. They are known tax havens which generate enough revenue from offshore money that they can run their small economies.
If India were to abolish personal income taxes, the move would be unprecedented in many ways. It would become the first major economy in the world to abolish income taxes. In this article, we will explain why it is plausible that India can abolish personal income taxes without disrupting the economy.
Tax on Middle Class
Firstly, it needs to be understood that the rate of tax compliance in India is very low. The very rich do not pay any taxes because they find loopholes and ways to hide their wealth. The majority are very poor and therefore do not need to pay taxes. It is only the middle-class salaried people in India who are paying taxes. This demographic is also the one which is driving India’s growth. The average taxpayer is educated, young lives in an urban area and is used for conspicuous consumption. BY taking money away from these people, the Indian government only hurts the GDP.
Low Tax Base
It also needs to be understood that less than 3% of the total population of India pays any income tax. Amongst the ones that do file tax returns, about 50% declare zero taxes. A very tiny percentage of people who are in the very high-income range actually pay these taxes. In a country of 1.25 billion people, only 400 thousand people pay a substantial amount of income tax.
Also, other countries are heavily dependent on personal income tax to meet their budgets. However, this is not the same in India. India derives less than 15% of their budget from personal income taxes. If the government can cut 15% of their spending, they can simply abolish the income tax and there will be no effect on the budget.
This less reliance on personal income tax is what makes abolishing it a very real possibility.
Lower Administrative Costs
As mentioned above, the amount of money received from this whole charade is very less. The government does not make a lion’s share of its revenue from income taxes. However, they do pay a lion’s share of the money received in the form of expenditures.
The Indian government has a large bureaucracy which enforces these tax laws. Everyone is supposed to file a tax return. The paperwork takes up a lot of time and resources. Also, since the rate of compliance is so less, the government has employed many people to zero down on non-compliance and conduct raids. Corruption and bribery have ensured that the Indian state has not been able to substantially increase its tax income even after employing these tax hit men.
Hence, if the personal tax is abolished, the government would not need to employ a large number of people doing paperwork. Hence, even though the income would go down 15%, there will be a huge drop in the expenditure as well! Once again, this is what makes abolishing income tax a plausible idea in an economy which has the scale of India.
Higher Economic Turnover
Cutting down on income taxes will end up putting a lot of money in the hands of the people. These people will then spend this money on everything from electronics to real estate. As a result, the GDP of the nation will increase by leaps and bounds. India needs to increase the indirect taxes marginally. This would help the government raise more revenue when the economic turnover increases and the economy grows in size. The shortfall from personal income taxes will be compensated by an increase in the tax base and a marginal increase in the tax rate of indirect taxes.
At the present moment, the Indian government offers a lot of subsidies to the lower middle-class population. These subsidies include subsidy on cooking gas, electricity etc. Farmers also get frequent loan waivers and fertilizer subsidies. The government, therefore, spends more than it earns in personal income tax revenue on subsidies. The solution to this problem is that the subsidies should also be cut down. Cutting down on subsidies without cutting down on income tax would be politically unpopular. If the subsidies are also cut down along with income tax, the government may end up saving some revenue instead of losing revenue.
Asset Price Deflation
India is also suffering from asset price inflation. The prices of housing and other assets like gold have gone through the roof. This is because people try to evade income tax by investing the money in other assets. Since gold and real estate are these assets, their prices are heavily inflated, and the common man is not able to afford them.
Abolishing the income tax will, therefore, have several benefits for the government as well as the common man. It would be financially imprudent to take such a step
Submitted by Anonymous on June 27, 2020 - 3:58 PM
Our govt basic aim is to collect funds for running nation.The sources can be easy and without trouble to a common man . Collection of taxes at every source and every person is a complicated process.why not replace it with first point increase in few products and services like increase in fees or licence in mining ,crude oil, petroleum, telecom spectrum etc at one point only where it's under govt hold before circulation to common public. Corporates already supporting with majority of taxes . They can be made liable for more taxes with increase in their products margins .we can buy a biscuit @10 instead @5 if no burden seen of taxes.Buying petrol @3 dollars can fetch more amount than taxes .It will boost economy with free trade