OTTAWA—Canada’s personal income tax expenditures disproportionately benefit the rich and cost the federal treasury nearly as much as it collects in personal income tax, says a study released by the Canadian Centre for Policy Alternatives (CCPA).
Taxes and tax cuts
This study finds that Canada’s personal income tax expenditures disproportionately benefit the rich and cost the federal treasury nearly as much as it collects in personal income tax. The study examines the income distribution of benefit for the 64 personal income tax expenditures for which there is available data. Out of the 64 tax expenditures, 59 of them provide more benefit to the top 50% of income earners than the bottom half, with the largest share going to the richest 10%. The cost of those 59 expenditures totalled $100.5 billion in 2011 alone.
Basic Personal Exemption (BPE) increases are being brought in by the new provincial government under the auspices of reducing poverty. The BPE is the floor at which we start paying provincial income taxes.
Winnipeg City Council is currently considering a development fee to ensure that suburban growth in our city pays its fair share of city-wide infrastructure needs. Such fees are nothing new: municipalities surrounding Winnipeg levy them as do most major Canadian cities. Winnipeg developers are up in arms and do not want to pay the proposed development fee. In this stance they are being consistent with the historic position of the industry in our city, an industry that has had significant influence over Winnipeg City Hall, especially in promoting costly suburban sprawl.
La présente étude se concentre sur l’ascension des nouveaux médias, en contexte de déréglementation et de sous-taxation, entre le milieu et la fin des années 2000. Les services médiatiques sur Internet, et en particulier des services de télévision par contournement (TPC) tels que Netflix et YouTube, qui n’ont pas de présence physique au Canada, profitent d'un avantage inéquitable sur les nouveaux services en ligne canadiens, puisqu’ils n’ont pas l’obligation de percevoir les taxes sur la valeur ajoutée et ne paient pas d’impôt sur le revenu au Canada. Le Canada perd des centaines de million
In an interview with Vaughn Palmer earlier this summer, the Premier confirmed her government has changed its tune on the Medical Services Plan (MSP) tax, finally admitting that it’s unfair and in need of reform. MSP is an unfair tax because it takes a bigger share of income from lower- and middle-income British Columbians than from upper-earners. A two-parent family living on $40,000 a year pays $1,800 in MSP, a whopping 4.5% of their household income. A family making $400,000 per year pays the same $1,800 but that only represents 0.45% of their income.
(Vancouver) The majority of British Columbians would come out ahead under a plan to scrap MSP and replace the $2.5 billion in public revenues it currently brings in with fair taxes scaled to income.
This short paper offers two options for replacing the MSP in BC with a fairer system. It originally appeared as a post on our Policy Note blog.
This study focuses on the rise of the new media, in a mainly unregulated and undertaxed fashion, since about the mid- to late-2000s. Over-the-top service companies, such as Netflix and YouTube, with no physical presence in Canada enjoy an artificial advantage over their Canadian competitors in that they are not required to collect and remit value-added taxes (sales taxes), and frequently don’t pay income tax.
Inside this issue: Time to do away with MSP, by Iglika Ivanova Yes, let’s lower the voting age in Canada, by Seth Klein Housing budget? Not so much, by Marc Lee Getting serious about good jobs Refugees are bringing new attention to the gaps in our social safety net, by Suzanne Smythe BC government’s spin cycle on LNG, by Marc Lee