Socialists always say that we should raise taxes on the rich. The rich reply that they will take their investments and businesses elsewhere. Let’s look at the facts.
In Canada the top income bracket starts at approximately $128,000. Anything above that is taxed at 29 per cent. This is the lowest tax rate among G8 countries. In the United States, it is 44 per cent. If a tax bracket of $250,000 to $750,000 were to be established at a tax level of 33 per cent and a tax level of 35 per cent over $750,000, the government would raise approximately $12 billion.
Instead of raising the tax rates, and curbing offshore tax havens, the federal government taxes ordinary citizens to make up the revenue shortfall, as well as borrowing money from abroad which the average Canadian is held to pay back including interest.
Dennis Howlett of Canadians for Tax Fairness testified at the Finance committee that tax evasion in Canada is costing the government $80 billion annually. Shouldn’t the government do something about this, rather than allowing the rich elite to continue to avoid paying their fair share of taxes?
Bob Abrahams, Nelson