TAX NEWS - JUNE 2010

Canada Tax: Another user tax like HST won't help country

The debate in Ontario and B.C. right now is the HST, and the public anger and financial repercussions the tax implementation will bring to the middle class and poor.

Should not however, the debate in this country be based on the continuance in division of wealth in Canada, a division of wealth that has slowly decimated the middle class.

OK so we are all tired of hearing that corporations paid over 50% of all taxes in the 1950s and now pay less than 7%. We are told that is old news. How about this fact then.

Since 1995 we have actually experienced tax decreases in Canada.

About 1% for the middle class, 5% for richest Canadians, and 11% for the very richest Canadians.

The results of this kind of tax policy have been a huge tax shortage in all provinces as a result of the revenue loss from our corporate citizens.

That has resulted in downloading of program responsibility to municipalities and their regressive tax system, that was never designed to fund those programs, it has led to more and more user taxes like the PST, GST, and now HST as governments attempt to make up the tax revenues loss from tax cuts to the wealthy.

The most egregious result is that we have created a super wealthy class who's now experiencing expediential growth of their wealth as a result of their tax holiday.

We have more and more billionaires in this country as more and more of the middle class and the poor fall through the cracks on the other end of the wealth pool. Where is the public policy fairness? In another user tax like the HST? I think not, let's have a real debate on taxation in this country.