Abolish Income Tax, Increase Consumption Tax

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Votes: 211

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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Comments

Submitted by Brandon A on September 22, 2022 - 4:24 AM

We have terrible infrastructure compared to many places with much lower income tax , our government is too big and is filled with bloating , the government takes a third of my money and I use basically no services except the roads, been to a hospital and waited for 8 hours to see a doctor for 15 minutes once in the last 15 years , this country rewards the lazy and the cheap and punishes the hard working and the people who pump up the economy.

Submitted by James Carey on September 17, 2022 - 5:30 AM

This should be a no-brainer for all decent and just political perspectives.

For the right, it’s an oppressive tax on working class and middle-income families which steals their hard-earned money, prevents them from making their lives better, and forces them to subsidize government spending they may not agree with (whereas a sales tax can be opted out of by avoiding unnecessary consumption)
For the left, it’s an oppressive tax on working class and middle-income families that force them to pay an unfair share of taxation, due to the richest Canadians earning their money outside of “income” (such as capital gains, inheritance, etc)

For everyone, it halts social mobility unless you’re already lavishly wealthy. Got a raise? Pay higher tax rates, and earn closer to the same as before. There goes your raise. So you rack up debts all year, only to pay them off with your tax “refund”. Secondly, the CRA is a very expensive organization to fund, whereas a simple sales tax would be easier to account for, and require less auditing of small guys who can’t afford accountants (and who may have screwed up their filing), so it cuts spending there. Thirdly, a sales tax would generate a much higher revenue from tourism!

Please, abolish income taxes for households under $750k per year! Replace it with whatever % sales (exempting non-junk groceries, medicine, insurance, utilities, fuel, and non-luxury clothing), capital gains, estate, etc. you need to maintain revenue. These folks can afford it at that wealth, and maybe us peasants can climb up a bit easier too…

Submitted by Chris on August 28, 2022 - 10:15 AM

Increasing sales tax to abolish income tax is a perfect solution. This allows consumers to have more money for tax exempt food products and other things like rent. I 100% support this idea, but I don't have the confidence that this would ever actually happen because I have lost faith in the government process over the last few years. This change will have major push back internally from anyone who stands to loose their job within the CRA.

Submitted by Reza Khan on August 18, 2022 - 3:38 AM

I wouldn't suggest to totally abolish income tax, But I at least reduce it, and might as well increase taxes on consumer and business taxes.

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 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 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 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.

Or

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

Or

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 Rose on September 14, 2022 - 5:22 PM

Honestly these comments are terrible. Some people are not at fault for their situation. People become disabled through no fault of their own.Disability pension is less than 13,000. Yet the child tax benifit can be over 20,000 for a family of four. What ever happened to being responsible for your choice to have and raise your children. I agree in the credit but it has become a voting tool.Buying votes.

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 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 a concerned citizen on March 19, 2022 - 8:24 AM

The extorsion from our so call "government" is beyond criminal. This system support the corrupted and prosecute the contributors to the system. There is no hope for a flourishing economy when there is no positive prospect of generating any types of profits. What is the point of making money if you're going to be bullied to give it away as soon as you make it?! How does that even qualify us as "Free Beings"? Follow the governmental bully, give it all to the bully or Else! That is what it is like to be Canadian now days!
This system is beyond corrupted! The so call services we are allegedly getting from paying taxes is an absolute joke. The disabled with no prospect of gaining money have to pay taxes on top of what they have been deducted at the source before payment, at the end of the year so the government can cash claw back even more out of those people. What do they get in return? Higher medical costs, more taxation through products, Carbon Taxes so they have to pay to breathe on this planet, and cuts back from all needed services. That is despicable. I could go on and on, but the point is that charging interests and taxes only support greedy people while punishing the hard working population.
No taxation at all should be the way.

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 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 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.