Tax Cuts for the Poor

[August1991]

In the US, Bush cut taxes. Everyone said the cuts were for the rich.

In Canada, let's cut taxes for the poor.

Why in Canada do pension and EI contributions stop at about $30,000? Why not eliminate these contributions and fold them into general tax revenues. This would lower or eliminate (and simplify) payroll taxes.

Then, let's give a general personal exemption of say, $15,000 or more.

Many people would not have to file at all - saving administration costs. And this would simplify tremendously small business taxes and make it easy for them to hire people.

Taxes should be easier to pay than they are to avoid.

Done wisely, the government would get the same tax revenue.

[Newfie Canadian]

Done wisely, the government would get the same tax revenue.

And there's the rub.

[playfullfellow]

Many people would not have to file at all - saving administration costs. And this would simplify tremendously small business taxes and make it easy for them to hire people.

The question could be "does the government really want to simplify taxes"? Under the current state of confusion, it is pretty easy for mistakes to be made and not be caught. Generally when the mistake is on the tax payers part, then they get their fingers slapped right away if they owe money but it can take months if they over paid. Under the current system, it is almost impossible to not have an accountant if you are a small business. I agree with August, let's get rid of useless crap in our tax system and simplify the damn thing. Set the personal exemption limits and anyone under those limits shouldn't have to pay taxes at all. I don't know about the CPP or EI rolled into general taxes collected. The feds would forget what those taxes were collected for and use them to give themselves a raise. I think EI should be based more on a user pay more system. That way the people who never use the system can get a break over time. I figure that since I have started paying into EI, I have paid over 6000 dollars into it and never collected a cent. If that 6000 were put into an account specifically for me, then I would have quite a few bucks set aside now.

[cgarrett]

the current exemption is definitely too low... no one can acutally live on that kind of money.

[Cartman]

Taxes should be easier to pay than they are to avoid.

Agreed. The current system is ridiculous. I also think that loopholes should be closed.

[August1991]

The question could be "does the government really want to simplify taxes"?

Since Mulroney and the GST, no Canadian politician has gone near taxes with any intent for a serious reform. And given Mulroney's reputation, no politician is likely to go near the issue any time soon.

It's unfortunate but it's a no-win situation for a politician.

The most a reforming, "truly progressive" poltician could do is to cut the rate of existing taxes, provoke a deficit and then hope the political pressures line up for tax reform.

I don't know about the CPP or EI rolled into general taxes collected. The feds would forget what those taxes were collected for and use them to give themselves a raise.  I think EI should be based more on a user pay more system. That way the people who never use the system can get a break over time.

The CPP and the EI are for all intents transfer schemes. The CPP transfers money to the surviving elderly and the EI transfers money to a bizarre group of people ranging from pregnant women, unionized workers on lock-out to seasonal workers. For most people, it is absurd to believe you will ever be a recipient of money put into these schemes. (I encourage other people to smoke cigarettes because they'll likely die young before getting a pension.)

CPP and EI "contributions" should simply be rolled into general tax revenues. This would benefit the poor (who now pay the burden of these contributions) and make easier the life of every small business bookkeeper.

[Guest eureka]

The problem with your topic is that it is motherhood. There can be no serious argment against your proposal.