Fair Taxation for Everyone! A Flat Income Tax Part 2

For the first time in 12 years, government debt costs will surpass GST revenue (The Hub, April 18, 2024) Projections from budget 2024 now show both revenues from the GST and public debt charges match each other at $54.1 billion. The federal government could spend as much as $64 billion on charges for public debt by the end of the decade. In future years, the government estimates GST revenues won’t cover its public debt charges. In 2028-29, the GST is projected to generate $61 billion in revenue. Meanwhile, public debt charges will reach $64 billion. The federal government’s debt interest payments have skyrocketed in recent years. They were just $20 billion in 2020-21. But this year they’re projected to hit $54 billion and reach as high as $64.3 billion before the end of the decade. When the Government can’t cover it’s debt….guess who receives higher taxes? You. Michael Taube: Why the Capital Gains Tax Increase Hurts All Canadians, Not Only the Wealthy (Epoch Times, 4/22/2024) Prime Minister Justin Trudeau and the Liberals unveiled the federal budget last week. Most Canadians had already braced themselves for yet another disastrous round of government interference, tax hikes, and wasteful spending. David Dodge, a former Governor of the Bank of Canada, even told CTV News Channel’s “Power Play” this would “likely to be the worst budget” since 1982 “in the sense of pointing us in the wrong direction as to how we go about raising the incomes of Canadians and actually making Canadians feel better over the medium term.” Dodge’s analysis was right on the money. We don’t have to look much further than Ottawa’s decision to target capital gains, a policy that will be detrimental to not just wealthy Canadians, but all Canadians. Adjusting the tax levy from 50 percent to 66.7 percent on profits for capital gains over $250,000 for individuals, trusts, and corporations doesn’t just hurt roughly 0.13 percent of the Canadian population. It hurts the other 99.87 percent of Canadians, too. Targeting capital gains is a clear sign the Liberals have little to no respect for individuals and companies that are profitable and contribute to Canada’s overall economic engine. Higher taxes and lower take-home pay increases the state’s role in our daily lives, reduces economic liberty and freedom for people from all walks of life, minimizes the impact of free markets and private enterprise—and cripples the economy. This type of statist mentality and economic decline affects individuals, existing businesses, and new business opportunities at home and from abroad. Moreover, it could lead to another brain drain in Canada before long. Achieving new or greater financial success in a country with a regressive left-leaning government that regularly frowns upon the very nature of success would be nearly impossible. This could cause an exodus of individuals and companies to countries that reject statism and champion lower individual and corporate taxes. It appears that Trudeau and his Liberal government don’t pay much attention to sensible economic thinking. Trudeau, in his stupidity and ignorance, fails to understand that it is often the wealthy who provide economic opportunities and jobs for those in the middle or lower classes. By curtailing the ability of businesses and their owners to prosper, they negatively affect the Canadian job market and will push successful people out of the country, promoting the same mediocrity they display by their daily practices as the government of Canada! Budget Watchdog Says Feds Hiding Analysis of Carbon Tax Economic Impact (6/3/2024) The federal budget watchdog says Ottawa is withholding its analysis of the economic impacts of the carbon tax. “We’ve seen that, staff in my office, but we’ve been told explicitly not to disclose it and reference it,” Parliamentary Budget Officer (PBO) Yves Giroux told the House of Commons finance committee June 3. Mr. Giroux told MPs the analysis “essentially” confirms the report that his office has published. The PBO has assessed that when the economic impacts of the carbon tax are factored in, eight out of 10 households are worse off financially. Click on the image below to see a video of famous Shark Tank entrepreneur Kevin O’Leary talking about starting a Flat Tax in the USA. This is actually our idea for Canada and for the prosperity of all Canadians! O’Leary agrees with the Freedom Party of Canada’s idea for a Flat Tax for all Canadians and in the video he cites the USA as an example. He says somewhere between 22% and 29% would be good. We say let’s start at 25% and give it a trial run. That is, if the national debt keeps going up at 25% and we find that we can control it at 27% then we do what we have to do to keep it under control. So the flat tax will be adjustable based upon the economics of the country. By taxing people more as they become more successful, we discourage excellence and promote mediocrity. How many times have you heard someone say “There’s no point for me to take the higher paying job.. I’ll just have to pay back more!” And to a degree they’re right. In our flat tax scenario, you will now keep more of your earnings as you earn more. Feds Release Internal Data on Economic Impact of Carbon Pricing Ahead of Tory Motion Requesting Disclosure (Epoch Times, 6/13/2024) Ottawa has released its estimate of the carbon tax’s impact on the Canadian economy following Conservative allegations the government had prevented the Parliamentary Budget Officer from speaking on the data. The federal modelling data shows the country’s GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise, or 0.9 percent below what it is estimated to be without carbon pricing. The data was created in May by Environment Canada for the Parliamentary Budget Office (PBO) and models GDP and emissions based on raw economic and climate data. The federal carbon tax has become a politically charged issue in Canada, with the Tories vowing to “axe the tax” if they form a government. The Tories have argued that the carbon tax has contributed to increases in the cost of food, fuel, and home heating at a time when Canadians are struggling with the cost of living. The carbon tax has proven to be unpopular among a majority of Canadians, with an April survey finding that 69 percent of respondents do not support the plan to increase carbon pricing. The carbon tax is set to increase by $15 per tonne every year until it reaches $170 per tonne in 2030. Capital Gains Tax Hike Passes in the House (Epoch Times, 6/12/2024) A ways and means motion to increase the capital gains tax passed in the House of Commons by a 208 to 118 vote on June 11. The Liberals, NDP and Bloc Quebecois voted in favour of the motion, while the Conservatives voted against it. The changes to Canada’s capital gains tax, set to take place on June 25, mean that Canadian companies will pay taxes on 66.7 percent of their realized capital gains, up from the current 50 percent. Individuals will pay tax on 50 percent of the first $250,000 of capital gains earned in the year, and 66.7 percent of any gain above that threshold under the new system. While the change was first introduced in the April 2024 budget, the Liberals later separated the measure and promised to introduce it as a separate bill at a later date. Ms. Freeland said on June 10 that the capital gains tax changes as a way to encourage “fairness” in Canada’s tax system. She said because of the way investment gains are currently taxed, “well-off” Canadians who make money through investments can end up paying a lower marginal tax rate than those who earn incomes, such as nurses or plumbers. Ms. Freeland said the changes to the tax regime were a more “fiscally responsible” approach than the government taking on more debt. The changes to the tax are estimated to bring in $19.4 billion over the next five years, and the Liberals have said the changes will only impact the wealthiest 0.13 percent of Canadians. The Tories have argued the tax would impact a wider category of Canadians, many who are not wealthy. During question period prior to the vote, Conservative Leader Pierre Poilievre argued the changes to the capital gains tax will exacerbate existing crises in the country. “He [Prime Minister Trudeau] wants to tax away doctors when we have a doctor shortage. He wants to tax homebuilders when we have a housing shortage. He wants to tax farmers when we have a food price crisis, and he wants to tax small businesses when our economy is already shrinking,” Mr. Poilievre said. “The good news is, if you’re a billionaire, you won’t pay it. The prime minister has given you two full months to sell your assets and get your money out of Canada to go build a business south of the border, or in some faraway place.” “We have a plan to support tax fairness. Today, Conservatives picked multimillionaires over nurses and plumbers and voted against tax fairness. Pierre Poilievre decided to oppose investments in housing, healthcare, and good jobs,” she said on platform X, formerly Twitter. The proposed capital gains tax increase has been controversial among business groups, with the Canadian Federation for Independent Business and the Canadian Chamber of Commerce telling Ms. Freeland in a May 9 letter that the change would “make Canada a less competitive and less innovative nation.” The Canadian Medical Association has called the tax changes “detrimental” to doctors because it would cause a “retroactive increase in tax on the retirement savings of mid to late-career doctors” and deter new graduates from considering community-based practice. The Freedom Party of Canada will reverse all of Trudeau’s Capital Gains Taxes on Canadians and all of his other taxes as well! Saskatchewan Granted Injunction to Block CRA From Collecting Carbon Tax (Epoch Times, 7/9/2024) The Federal Court has granted an injunction order to stop the Canada Revenue Agency from collecting outstanding federal carbon tax payments from Saskatchewan, the province has announced. The Saskatchewan government filed an emergency application July 5 to prevent the Canada Revenue Agency (CRA) from collecting the home heating carbon tax levies the province has not paid since January. Premier Scott Moe and his government made the decision last year to begin withholding the home heating portion of its carbon tax payments as of Jan. 1. The move was in protest of the federal government’s refusal to exempt all forms of home heating from the tax after granting an exemption for home heating oil last fall. The exemption largely benefited Atlantic Canada but did little to help Saskatchewan where the primary heat sources are natural gas, propane, and electricity. The Freedom Party of Canada will totally eliminate Trudeau’s Carbon Tax.